Today: March 05, 2024
Today: March 05, 2024

Air NZ sees first-half earnings at lower end of forecast

Share This
Air NZ sees first-half earnings at lower end of forecast
Echha Jain
December 12, 2023

By Echha Jain

(Reuters) - Air New Zealand said on Wednesday it expects its first-half earnings to be at the lower end of its forecast, due to weak travel demand and increased competition from U.S. carrier.

New Zealand's flagship carrier had earlier forecast earnings before tax for the six months ended Dec. 31 between NZ$180 million ($110.34 million) and NZ$230 million.

For the same period last year, the carrier had reported a higher statutory profit before tax of NZ$299 million.

"Early signs of softness in domestic travel, particularly corporate and government travel, have continued, with late booking activity remaining weaker compared to the prior year," the company said in a statement.

The company also expects the second half of the fiscal year to be "increasingly challenging".

Its shares fell as much as 2.3% to NZ$0.645 by 2201 GMT, hitting their lowest level since Nov 30.

"The tight economic environment is having an impact on consumer's discretionary travel decisions, which appears to be borne out by Air New Zealand's tepid earnings guidance," said Tim Waterer, chief market analyst at KCM Trade.

Inflation and high borrowing costs have hit the airline, which is also struggling with quality inspections of RTX's Pratt & Whitney engines for a rare manufacturing flaw. Air NZ, however, said in October it sees a "nominal" financial impact from the inspections in the first half of 2024.

In September, RTX had estimated that it would have to pull 600 to 700 engines from Airbus A320neo jets for quality inspections between 2023 and 2026. Air New Zealand has 16 A320neo jets in its fleet of 106 aircraft.

Air New Zealand said it continues to address the ongoing impact from the engine issues on the business.

($1 = 1.6313 New Zealand dollars)

(Reporting by Echha Jain in Bengaluru; Editing by Shinjini Ganguli)


Analysis-Chinese developers resume UK commercial property retreat

By Iain Withers and Marc Jones LONDON (Reuters) - Some big Chinese developers are set to offload more real estate in Britain to raise cash, property agents say, making the most of a slowly thawing

Blackrock sees India, Indonesia as promising for investment opportunities

JAKARTA (Reuters) - U.S. investment firm BlackRock sees India and Indonesia as two Asia-Pacific countries offering a lot of investment opportunities, its head of research for the region said on

Cryptoverse: Asian traders give bitcoin blast-off

By Jihoon Lee and Jaspreet Kalra SEOUL/MUMBAI (Reuters) - Bitcoin's runaway rally is being driven by investors in Asia.

Analysis-Boeing's Spirit Aero bid could help supply chain but is no cure-all

By Allison Lampert and Abhijith Ganapavaram (Reuters) - Boeing's possible takeover of Spirit AeroSystems, along with delaying plans to ramp up production of 737 MAX jets, could help the planemaker

Thousands of Korean doctors face license suspensions as Seoul moves to prosecute strike leaders

Thousands of striking junior doctors in South Korea are facing proceedings to suspend their medical licenses Tuesday

Several people dead after small airplane crashes in Nashville

(Reuters) - Several people have died after a single-engine airplane crashed beside a highway in Nashville, the city's metro police department said in a post on social media platform X on Monday.


AI pervades everyday life with almost no oversight. States scramble to catch up

Lawmakers in at least seven states are taking big legislative swings to regulate bias in artificial intelligence

Miami Beach is breaking up with spring break — or at least trying to

Miami Beach is trying to break up with spring break, but it’s not yet clear whether spring break will take the hint

Stocks skid as China's NPC disappoints, bitcoin nears record

By Kevin Buckland TOKYO (Reuters) - Chinese stocks stumbled on Tuesday, dragging Asian peers with them, as investors showed their disappointment at Beijing's plans to support the economy as its week-

Dollar a spectator to China news, yen ponders rate risks

By Wayne Cole SYDNEY (Reuters) - The dollar held steady on the yuan on Tuesday as markets digested a welter of policy statements out of China, while a rebound in Tokyo inflation seemed to take Japan a

- Advertisement -
Advertisement: Limited Time Offer