Air New Zealand and Auckland Airport have both revealed their half-year financial results this morning, with the national carrier announcing earnings before tax of $185 million for the past six months.
Air New Zealand's net profit after taxation was $129 million, driven by a whopping $3.1 billion of passenger revenue.
"This [net profit] is an expected reduction on the comparable period last year when the airline recorded one of its highest-ever results following the rapid return of air travel as New Zealand's borders reopened," a statement on the NZX said.
"Based on the airline's balance sheet strength and the result announced today, Air New Zealand shareholders will receive an unimputed interim dividend of 2.0 cents per share.
"Passenger revenue of $3.1 billion was up 21%, driven by a significant ramp-up in capacity across the international network.
"Operating costs, including fuel, increased 21% due to a substantial increase in long-haul flying this year."
The airline also cited inflation pressures as a key impact on its results — and passengers might feel the knock-on effects of that.
Air New Zealand "is currently reviewing pricing and capacity" to reflect those pressures.
But Dame Therese Walsh, the company's chairperson, called the results "solid".
"We knew this year would be tougher than the last, when pent up levels of demand and industry-wide capacity constraints drove one of the strongest financial results in our history," she said.
"And while we have reported a solid first half result, it is against the backdrop of significant ongoing supply chain issues.
"On top of these operational challenges, we are now leaning into the reality of a worsening revenue and cost environment, which is expected to have a significant adverse impact on performance in the second half.
"The business is pulling multiple levers to mitigate the impact of these headwinds, and this is a key focus for the team."
Auckland Airport
The country's main air travel hub announced an operating EBITDAFI (earnings before interest expense, taxation, depreciation, fair value adjustments and investments in associate and joint ventures) of $310.2 million.
It saw revenue of $440.5 million for the half-year and a reported profit after tax of $118.7 million, leading to a net underlying profit after tax of $145.7 million. Shareholders are set to receive an interim dividend of 6.75 cents per share.
Auckland Airport chairperson Patrick Strang echoed some of Air New Zealand's comments, also calling the airport's result "solid".
Today's result announcements come as the two companies are locked in a stoush over the airport's development.
They've previously clashed over delays at the airport.
"While the outlook continues to remain positive, we may see the rate of growth slow over the second half of the financial year as the local aviation industry faces into economic headwinds," Strang said.
"The half-year has not been without its challenges, with some customers experiencing unacceptable delays in processing.
"I'm pleased about the way our team stepped up and led the collaboration with government agencies, airlines and airline ground handlers to drive improvements."
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