Air New Zealand (AIR.NZ) revealed a significant 61% decline in its annual earnings on Thursday, citing severe competition and rising inflationary pressures that have adversely affected travel demand in both its domestic and North American markets.
The national airline of New Zealand has faced intense competition from American airlines, ongoing high inflation, and unforeseen global engine maintenance demands from Pratt & Whitney.
For the fiscal year, the airline’s pre-tax earnings fell to NZ$222 million ($138.55 million) from NZ$574 million the previous year. Despite the drop, the results exceeded the Visible Alpha consensus forecast of NZ$176.7 million.
Additionally, Air New Zealand announced a final dividend of 1.5 cents per share for the fiscal year 2024. The conversion rate used for the U.S. dollars is $1 = 1.6023 New Zealand dollars.
