Airwork lifts earnings guidance as new customers come with bigger fleet

Monday 13th June 2016

Airwork Holdings, the aviation service provider, raised its annual earnings guidance after signing new customers from its expanded fleet.

Net profit is expected to exceed $22 million in the year ending June 30, up from previous guidance to exceed $21 million, and up from $15.5 million in the 2015 year, it said in a statement. Airwork has expanded its Boeing 737 fleet, which it says will number 19 in the first half of the 2017 financial year, more than twice the nine planes it operated in 2014.

Two of its older planes have been replaced and redeployed on contracts with new customers, and two more scheduled for delivery will start operations in the September quarter of this calendar year.

The update doesn't include the $2 million Airwork won in its High Court claim against former customer The Helicopter Line, which it said is still under consideration.

Airwork shares fell 0.2 percent to $4.69 and have gained 21 percent so far this year. The stock is rated a 'hold' by First NZ Capital analyst Paul Turnbull, who has a $4.30 price target.

BusinessDesk.co.nz

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