Air New Zealand Ltd

AIZ: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$7.27	Hgq	Lgfmhtk

Air New Zealand: Profitability Softens as Competition Returns

Angus Hewitt

Oct 12, 2023

We maintain our NZD 0.97 (AUD 0.88) fair value estimate for shares in Air New Zealand following a trading update, with shares screening as undervalued. Despite tremendous profitability in fiscal 2023, driven by pent-up demand and constrained capacity, the operating environment is beginning to normalize. Profit before tax guidance of NZD 180 million to NZD 230 million for the first half of fiscal 2024 broadly tracks our unchanged full-year fiscal 2024 forecast of NZD 423 million—a 28% decline on fiscal 2023.

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