Ann: FLLYR: AIR: Air NZ announces third consecutive year of earnings growth

• Release Date: 27/08/14 08:54
• Summary: FLLYR: AIR: Air NZ announces third consecutive year of earnings growth
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					AIR
27/08/2014 08:54
FLLYR

REL: 0854 HRS Air New Zealand Limited (NS)

FLLYR: AIR: Air NZ announces third consecutive year of earnings growth

Air New Zealand has today announced normalised earnings  before taxation of
$332 million for the 2014 financial year, an increase of 30 percent on the
previous year. Statutory earnings before taxation were $357 million, an
increase of 40 percent, while statutory net profit after taxation was $262
million.

Operating revenue, capacity and yields grew across the network, while unit
costs remained stable.

The Board has declared a fully imputed final dividend of 5.5 cents per share,
bringing total ordinary dividends declared for the year to 10 cents per
share, an increase of 25 percent. Following a review of the company's capital
structure, a fully imputed special dividend of 10 cents per share has also
been declared.

Chairman Tony Carter said that the result represented the third consecutive
year of strong earnings growth for the airline.

"This is a result Air New Zealand can be proud of. Our employees, our
customers and our shareholders can be confident that Air New Zealand
continues to be a world leading airline both in terms of customer experience
and financial performance," Mr Carter said.

"We have made significant progress on our key strategic initiatives.  With
new aircraft offering better operating economics, an optimised network with
the right alliance partners, disciplined cost management and a daily focus on
improving the customer experience, we are very well positioned to continue
growing."

Mr Carter said that Air New Zealand will significantly grow its capacity in
the coming year, as new aircraft arrive.

"Based on our current expectations of market demand and fuel prices, we
expect to improve on the 2014 result in the coming year. This outlook
excludes equity earnings from the Virgin Australia shareholding," he said.

Chief Executive Officer Christopher Luxon said the result was testament to
the efforts of Air New Zealanders at all levels of the organisation.

"Our team is demonstrating their passion and commitment to ensuring that Air
New Zealand is performing better than ever before. A successful Air New
Zealand is good for everyone - it is a virtuous circle. As we grow our
revenue and control costs, we generate strong financial results which lead to
sustainable returns to shareholders and investment back in the business," Mr
Luxon said.

"We have a number of initiatives underway to further improve the customer
experience, including induction of the Boeing 787-9 fleet, the refurbishment
of our Boeing 777-200ER fleet, moving to new terminals and lounges in Los
Angeles and London and multiple lounge upgrades across the network."

Mr Luxon also commented on the airline's alliance with Singapore Airlines,
which was recently granted full regulatory approval.

"This alliance is the third strategic revenue sharing alliance we have formed
in recent years, following agreements with Virgin Australia (reauthorised in
2013) and Cathay Pacific in 2012. Forming alliances with the right partners
in the right markets is a key pillar of our Go Beyond strategy."

"Strong alliances such as this provide us with a platform for sustainable
growth, allowing us to open up new routes and markets across the Pacific
Rim", he said.
End CA:00254454 For:AIR    Type:FLLYR      Time:2014-08-27 08:54:58