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Air New Zealand expects strong earnings growth after record profit

Published 26/08/2015, 10:26 am
© Reuters.  Air New Zealand expects strong earnings growth after record profit

WELLINGTON, Aug 26 (Reuters) - Air New Zealand Ltd AIR.NZ forecast strong earnings growth in the current year as it posted record annual net profit thanks to more passengers and lower fuel prices.

The national carrier, which is 52 percent state-owned, announced a net profit of NZ$237 million ($153.22 million) in the year to June 2015, up 24 percent from the previous year. Revenue jumped 6 percent after the airline increased capacity in domestic and international routes.

In a statement the company said it expected to achieve "significant" earnings growth this financial year with capacity to grow 11 percent as it expands its international routes.

It declared a dividend of 9.5 cents per share.

Despite the rosy outlook, the airline's shares fell due to concerns that China's economic slowdown could cut earnings from Chinese travellers. The stock was down 2.64 percent at NZ$2.58 at 0010 GMT, while the broader market was largely flat.

($1 = 1.5468 New Zealand dollars)

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