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Air New Zealand profit and cash down in FY2010, expects medium-term profitability

26-Aug-2010 11:28 AM

Air New Zealand revenue down 12.2% - financial/traffic highlights for the 12 months ended 30-Jun-2010:

  • Operating revenue*: USD2,837 million, -12.2% year-on-year;
  • Operating costs: USD2,341 million, -14.9%;
    • Labour: USD684.4 million, -4.2%;
    • Fuel: USD658.5 million, -44.3%;
  • EBITDAR: USD469.5 million, +2.9%;
  • Normalised profit** before tax: USD96.1 million, -6%;
  • Net profit: USD57.5 million, +290%;
  • Passenger numbers: 12.3 million, -0.4%;
  • Passenger load factor: 81.8%, +2.8 ppts;
  • Yield:  USD 8.98 cents, -7.1%;
    • Short-haul: USD 12.41 cents, -5.4%;
    • Long-haul: USD 6.59 cents, -10.7%;s
  • Total assets: USD3,224 million, -9%;
  • Cash and cash equivalents: USD748.2 million, -32.2%;
  • Total liabilities: USD2,126 million, -12%;
  • Net debt***: USD983.9 million, +7%;
  • Operating cash flow^: USD330.3 million, +33%. [more]

*Based on the average conversion rate at USD1 = NZD1.42601 during the reporting period
**Excludes net gains/losses on derivatives that hedge exposures in other financial periods, as according to New Zealand IFRS
***Including off balance sheet
^Before gains/losses on rollover of foreign exchange contracts that hedge exposures in other financial periods

Air New Zealand: “The Board has strong confidence in the airline’s ability to adapt to change and return stronger profitability in the medium term, while also recognising the need for preserving financial flexibility through this extended period of uncertainty,” John Palmer, Chairman. Source: Air New Zealand, 26-Aug-2010.

Air New Zealand: “The airline industry is showing signs of recovery with both demand and yields continuing to improve. The airline is planning to increase capacity in 2011 across the network, particularly on domestic and trans-Tasman services, through the addition of new aircraft, configuration changes and increased utilisation … we are optimistic that operating earnings will continue to improve through the 2011 financial year,” Company statement. Source: Air New Zealand, 26-Aug-2010.