Air New Zealand is joining others in getting back into the black on strong demand and sky-high fares. Photo / NZME
Air New Zealand is joining others in getting back into the black on strong demand and sky-high fares. Photo / NZME
Air New Zealand is forecasting a profit for the first half of the year on strong demand and sales.
The airline said it expects pre-tax earnings for the first half of the 2023 financial year to be in the range of $200 million to $275m.
It says it has continuedto see strong forward sales, particularly for travel through to January next year and continues to operate at approximately 70 per cent of 2019 financial year capacity.
The forecast assumes this forward sales strength continues over the coming quarter, with similar capacity and assuming an average jet fuel price of approximately US$130 ($220) a barrel.
"The airline notes that fuel prices remain highly volatile and that this is one of many factors that have the potential to slow our recovery and significantly impact earnings. Additionally, demand in the second half of the financial year remains highly uncertain," it said in an NZX notice.
It also said on this basis and taking into account global recessionary risks and other macroeconomic factors including inflationary pressures on costs, the airline is not providing full-year guidance at this time.
"The airline strongly cautions against extrapolating first half earnings guidance to the full year given the many uncertainties in the trading environment," it told the NZX.
The airline reported a net loss of $591 million in the year to June 30, up from $292m in the prior financial year.
Its loss before tax was $810m - up from $415m and the airline's loss before other significant items and tax was $725m, up from $444m.
The airline will join others in swinging back into the black on strong demand and yields - ticket prices are sky high. Last week Air New Zealand said it has put up domestic fares by 20 per cent.
It launched non-stop Auckland-New York flights at the weekend and tomorrow has its annual shareholders meeting. Shares today jumped 6c to 74c.
