Air New Zealand posts full-year net profit of NZ$81m

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Air New Zealand (ANZ) has posted a 1% year-on-year fall in its net profit to New Zealand dollars (NZ$) 81 million ($67.2 million) for its fiscal year ended 30 June.

Its operating revenue rose by 7% to NZ$4.3 billion on the back of higher passenger numbers and cargo volumes, said the Star Alliance carrier. ANZ has seen a strong improvement in the performance of its cargo business, with revenue up by 9% to NZ$278 million for the fiscal year.

The carrier's total expenditure for the period amounted to NZ$3.7 billion, a year-on-year increase of 10.2% as compared with NZ$3.3 billion in 2010. Aircraft fuel cost was up by 15.4% at NZ$1.03 billion for the fiscal year.

In terms of passenger traffic, RPKs for the year grew by 4.5%. Passenger numbers increased by 6.3% to 13.1 million. Capacity, as measured in ASKs, rose by 2.5% year on year. The airline's passenger load factor was up by 1.6 percentage points to 83.4%.

"These natural disasters and sustained high fuel prices dramatically altered what was shaping up to be a very positive full year result," said ANZ chairman John Palmer.

"The combination of reduced demand for travel as a result of the devastating Christchurch and Japan earthquakes, additional capacity into Christchurch to assist the relief effort and compassionate fares for those affected by the Christchurch earthquakes resulted in an estimated NZ$70 million negative impact on earnings," said ANZ's CEO Rob Fyfe.