Air New Zealand has released its first-half financial report showing the start of its recovery with a revenue of over 3 billion NZD.
Air New Zealand’s Swift Return to Service
The flag carrier’s Chair, Dame Therese Walsh, attributed the solid recovery to a combination of border restrictions easing, increased demand, and the Air NZ team who “rose to the occasion.”
The country’s border restrictions eased sooner than expected and the carrier responded to the developing situation by reactivating 29 routes and recruiting 3000 employees to support the return to operations. The results show the effect of this swift reaction.
The carrier’s statutory gross earnings were 299 million NZD and it achieved a net profit of 213 million NZD. Eight million passengers traveled with the operator during the period, compared to three million in the previous year.
In the same half of the previous year, the carrier reported a net loss of 272 million NZD. The results show a significant swing in the fortune of 285 million NZD.
Domestically, the carrier has almost returned capacity to pre-pandemic levels – currently at 94%. Internationally, however, at 60% of pre-pandemic levels, the carrier still has some services to reinstate.
Reflections and Outlook
Air New Zealand’s Chief Executive Officer Greg Foran stated, “Our recovery is well underway and operating performance is improving steadily.”
The CEO also hit a cautionary tone on the current environment that many airlines are navigating. With the continued strain on supply chains and global inflation, Foran said, “we continue to experience challenges that make it hard at times for our fantastic team to deliver the level of service we expect of ourselves, and our customers expect of us.”
Dame Walsh acknowledged that the positive results come soon after the devastation experienced in the nation due to the recent floods and Cyclone Gabrielle. Walsh said, “our hearts go out to all those impacted. We’re committed to supporting those regions however we can.”
Air New Zealand is optimistic about its performance into the second half of 2023 as levels of demand continue but reflected the CEO’s cautionary note on the global financial situation and oil prices.
With the positive results, the carrier will enter the region’s low season with some cautious confidence as it continues to reinstate its international network and looks ahead to the long term.
Dame Walsh concluded the report by reaffirming the company’s success is due to its staff. “While we cannot predict the future, we know this new normal we find ourselves in requires great skill and dexterity to navigate… our people are the very best in the business to deal with anything that comes our way.”
