Air New Zealand has returned to profitability in its annual results, reporting a $412m net profit after nearly three years of pandemic losses.
The carrier said Kiwis' demand for air travel exceeded expectations with pre-tax earnings of $574 million in the 2022/2023 year, as compared to an $810 million loss in 2022/2021.
Net profit was $412 million, following a loss of $591m in the last financial year.
On the "rapid recovery," chief executive Greg Foran said that it was "great to be standing on our own two feet" after years of Air New Zealand being in the red.
“A strong Air New Zealand is good for New Zealand," he said. "After several volatile years it’s great to be back in the black and standing on our own two feet especially given we have more than $3.5 billion in aircraft investment coming over the next five years."
The airline's earnings before other significant items and taxation was $585 million.
Revenue was $6.3 billion as compared to $2.7 billion last year.
Foran continued: "We know increased costs and high demand have made flying more expensive. In the past year, we put more aircraft and seats in the air, so there are more choices for customers which helps alleviate the cost of flying."
"At the same time, our own costs continue to rise and the reality is that airfares are unlikely to return to pre-pandemic levels."
The airline also announced shareholders will be provided with a one-off, fully imputed special dividend of six cents per share.
"The special nature of this dividend reflects the extraordinary 2023 operating environment, with strong pent-up levels of demand combined with industry-wide capacity constraints."
Dividends were suspended in 2020 due to the pandemic.
Air New Zealand chairperson Dame Therese Walsh said the result is an "important one given the critical role the airline plays in New Zealand both socially and economically".
“We are proud of the result Air New Zealand has delivered this financial year, and of the value we have created for our shareholders."
Foran today also announced the airline would buy four new aircraft - two ATR turboprop aircraft for regional routes and two Airbus A321neos for the international short-haul network.
"That’s in addition to the existing domestic Airbus A321neo orders, and the eight new Boeing 787 we have coming into the fleet as we retire our Boeing 777-300s over time."
The national carrier's recovery comes after turbulent years for the aviation industry as air travel ground to a halt amid the Covid-19 pandemic.
Rising demand, fuel prices and inflation have all put pressure on the airline, Greg Foran says. (Source: Supplied)
Over 2020 and 2021, the Government granted hundreds of millions in loans to Air New Zealand to keep the carrier afloat while surplus planes were retired from its fleet.
The carrier's return to the global aviation market hasn't come without hitches.
Passengers have faced staff shortages and high prices while the airline battled its way through the Omicron outbreak last year.
Foran said today: "We want all our customers to have a great experience and we know that over the past year we haven’t got that right every time.
He said the airline was making progress on customer complaints, with contact centre wait times "reduced on average by 75% since December", and improvements to reduce the number of delays and cancelled flights.
"Our entire whānau would like to thank our customers who have been patient and loyal while we emerged from the global pandemic. We’ve made significant progress in the past year, emerging as a strong Air New Zealand, which is good for the country."
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