Air New Zealand Ltd

AIZ: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$2.64	Vnn	Trrbbhzp

Air New Zealand Earnings: Maintenance Woes to Crimp Capacity Growth

Angus Hewitt

Aug 29, 2024

Profitability at Air New Zealand has moderated significantly. Fiscal 2024 underlying profit before tax of NZD 222 million was within guidance and about 2% below our forecast, but down 61% from near-record profits in fiscal 2023. Conditions have normalized. Pent-up demand has exhausted, previously constrained industry capacity has eased, and price competition has returned. The second half deteriorated further from first-half pretax profit of NZD 185 million amid cost inflation, engine maintenance issues, a soft economic backdrop in New Zealand, and increased competition on North American routes.

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