Air New Zealand FY2014-15

Old Aug 25, 15, 3:34 pm
  #1  
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Air New Zealand FY2014-15

Results just up.
EBIT $496m up 49.4%
NPAT $327m up 24.3%
Full results presentation nzx.com
Shareholder Review.
NZ Media statement.
Air New Zealand has today announced its 2015 annual result with normalised earnings before taxation of $496 million for the 2015 financial year, an increase of 49 percent on the prior year. Statutory earnings before taxation were $474 million, while statutory net profit after taxation was $327 million, an increase of 24 percent.

Capacity growth supported by strong demand, cost efficiencies and lower fuel prices has driven a year of significant earnings growth. Very strong operating cash flow of $1.1 billion was up 51 percent on the prior year.

The Board has declared a fully imputed final ordinary dividend of 9.5 cents per share, an increase of 73 percent on the prior year, resulting in a 2015 full year ordinary dividend of 16.0 cents per share, an increase of 60 percent on the prior year.
.....
Air New Zealand’s loyalty programme, Airpoints, continues to grow at pace with around 1.9 million members now, which is up almost 17 percent on the previous year. Australia remained the biggest overseas membership base with growth in that market exceeding 20 percent during the year.

“This doesn’t surprise us as more Australians than ever are embracing the Air New Zealand product and service offering whether it be on the Tasman, to the Pacific Islands, North America or South America.”

A cornerstone focus for Air New Zealand in 2015 financial year was knowing its customers better than ever before through the enhanced use of data and analytics.

“Air New Zealand will deliver more personalised and relevant offers to its customers in the future through the use of data and analytics. We have the systems, people and global partners in place to see the airline be more relevant than ever in our customers’ lives and in turn to deliver even more commercially through the Airpoints programme,” Mr Luxon says.
.....
nzx.com

Last edited by Blackcloud; Aug 25, 15 at 3:42 pm Reason: Added mdeia statement
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Old Aug 25, 15, 4:22 pm
  #2  
 
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Surprised to see Airpoints Australian memberships have grown by 20%, faster than the overall 17%, in spite of the existence of arguably the much better VA Velocity programme..
Xiaotung is offline  
Old Aug 25, 15, 4:33 pm
  #3  
 
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Originally Posted by Xiaotung View Post
Surprised to see Airpoints Australian memberships have grown by 20%, faster than the overall 17%, in spite of the existence of arguably the much better VA Velocity programme..
Or are they including Velocity members in that count?
cavemanzk is offline  
Old Aug 25, 15, 8:34 pm
  #4  
 
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I'm not surprised they're doing well. FFP aside they have a great product on the ground (especially their call centre) and in the air. They were advertising low fares to the US earlier so maybe that made a few sign up from Oz. Not everyone signing up is a FF. Owning a wee chunk of VA wouldn't hurt their back pockets either. I'd love to invest in air nz but I'm not so sure about the sector and what to expect over a longer term period. I'd probably just go to the meetings and be nosey.
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Old Aug 26, 15, 3:17 am
  #5  
 
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Originally Posted by NZbutterfly View Post
Owning a wee chunk of VA wouldn't hurt their back pockets either.
Owning a chunk of VA has (so far) meant nothing but throwing more and more money at the brand as it haemorrhaged money.. And having to increase ownership due to a mini boardroom battle.

The downside will be full on onslaught about to commence in the NZ market as JQ attempt payback for NZ backing VA in a campaign that has hurt QF significantly in their home market. Now that QF are profitable again they've got money to throw at NZ, and even if they never make a cent, if they can inflict pain on NZ then they believe they win.

If I had Air NZ shares (and I don't) I'd be getting ready to bail. While the exec team are promising another good year next year it's way to early to know what will happen. IMHO the cost cutting that has occurred with the profit at all costs mentality has left the airline in great shape financially, but has left HVCs grumpy and walking. Domestic competition and imminent arrival of competition on the LAX route along with OneWorld growing while *A struggles could all see very interesting things happen in the medium to long term.
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