Air New Zealand revenue down 15% in 1HFY2010, expects to remain profitable in second half

Air New Zealand revenue down 15.1% - financial highlights for the six months ended 31-Dec-2009:

• Revenue: USD1,423 million, -15.1% year-on-year;
• Operating cost: USD1,161 million, -19.0%;
  • Labour: USD341.7 million, -3.1%;
  • Fuel: USD318.1 million, -51.7%;
• Operating profit^: USD265.3 million, +7.3%;
• Profit before tax: USD58.3 million, +500%;
• Net profit: USD38.9 million, +133.3%;
• Passenger traffic:
  • Short-haul: +4.8%;
  • Long-haul: -7.3%;
• Load factor:
  • Short-haul: 77.2%, +3.8 ppts;
  • Long-haul: 83.3%, +1.2 ppt;
• Yield:
  • Short-haul: -9.2%;
  • Long-haul: -12.5%. [more]

*Based on the conversion rate at USD1 = NZD1.44

^Profit before finance costs, depreciation, amortisation, rental expenses and tax

Air New Zealand: "Yields are predicted to remain flat in the 2010 calendar year and only begin to increase in 2011. More airlines are predicted to join the 34 carriers that have gone out of business since 2008. We are seeing a slow but steady improvement with traffic volume improvements, resulting in increased load factors," John Palmer, Chairman and Rob Fyfe, CEO. Source: Air New Zealand, 26-Feb-2010.

Air New Zealand: "There has been a stabilisation and recovery of the trading environment, although demand and average fares still remain significantly lower than prior periods. The challenge remains to improve passenger numbers and yield. In recent periods, the volatility of fuel prices and foreign exchange rates has overshadowed the natural seasonality of Air New Zealand's business. We expect a more normal seasonal balance this year with the second half weaker than the first…we expect the business to remain profitable in the second half," Company statement. Source: Air New Zealand, 26-Feb-2010.