Air New Zealand has more than doubled its first-half pretax profit as the national airline benefits from lower fuel prices, new fleet efficiencies, and a rise in tourist numbers.
Pretax earnings rose to $NZ457 million ($A422.21 million) in the six months to December 31, from $NZ216m a year earlier, it said.
The company forecast earnings of $NZ400m, excluding any equity accounting contribution from its 26 per cent stake in Virgin Australia, at its annual meeting last October.
Net profit in the first half rose 154 per cent to $NZ338m.
Revenue rose 12 per cent to $NZ2.7 billion on the back of a 10 per cent rise in domestic passenger demand as it added capacity to meet Jetstar’s competition on regional routes.
Chief executive Christopher Luxon said on the long-haul network it was pleased with demand and performance on new routes to Houston and Buenos Aires. Starting in June, it is launching seasonal services to Vietnam.
Air New Zealand’s stake in Virgin and its share of the Christchurch Engine centre earnings contributed $15m and $NZ10m respectively for the first half.
The board declared a 10 cent fully imputed interim dividend.
The board also forecast that based on current market conditions and fuel prices, earnings before tax for the full 2016 financial year are likely to exceed $NZ800m, excluding Virgin earnings.
The shares last traded at $NZ2.86 and have gained 10 per cent in 2016.
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