ANZ enjoys third consecutive year of profit

29 Aug 2014 by Clement Huang

Amidst a flurry of loss announcements made by several carriers (see here, here and here), it’s a breath of fresh air to report that Air New Zealand has enjoyed profits of NZ$332 million (US$278 million) for the 2014 financial year.

The earnings represent the third consecutive year of growth for the airline, with an increase of 30 percent over the same period last year.

Air New Zealand Boeing 787-9

ANZ chairman Tony Carter attributed the positive result to the efforts that the airline has made to its key strategic initiative.

“With new aircraft offering better operating economics, an optimised network with the right alliance partners, disciplined cost management and a daily focus on improving the customer experience, we are very well positioned to continue growing,” said Carter.

The outlook for the coming year, based on current expectations of market demand and fuel prices, is also positive. This does not include equity earnings from Virgin Australia, of which it has a 25.99 percent stake, as the Australian carrier earlier today announced a loss of A$211 million (US$197 million).

Space seat – premium economy on the B777-300ER

To maintain its growth, ANZ has a number of initiatives underway to improve its services. This includes the introduction of the fuel-efficient Boeing 787-9 aircraft (see here), the refurbishment of its Boeing 777-200ER fleet, and moving to new terminals and lounges in Los Angeles and London.

In addition, the airline is also looking to benefit from its new alliance with Singapore Airlines, which was recently granted regulatory approval (see here).

Business class on the B787-9

“This alliance is the third strategic revenue sharing alliance we have formed in recent years, following agreements with Virgin Australia (reauthorised in 2013) and Cathay Pacific in 2012. Strong alliances such as this provide us with a platform for sustainable growth, allowing us to open up new routes and markets across the Pacific Rim,” said ANZ chief executive Christopher Luxon.

Finally, the airline also announced that it would be remunerating over 8,000 of its employees with a one off bonus of up to NZ$750 (US$635) each as a small token of its appreciation for the hard work done in the last year.

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Clement Huang

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