Monday 16th April 2018
|Text too small?|
Air New Zealand expects early engine maintenance checks will prompt some changes to its international flight schedule, but doesn't anticipate a hit to earnings and affirmed annual guidance.
The shares fell 2.2 percent to $3.305 today after saying the early maintenance checks on the Trent 1000 engine powering its Boeing 787-9 Dreamliner fleet would have some impact on the international schedule. Last month engine maker Rolls Royce and regulator the European Aviation Safety Agency directed operators to carry out checks on certain engines every 300 cycles rather than the typical 2,000 threshold.
The Auckland-based airline today said it didn't expect a material impact on earnings and affirmed annual guidance for 2018 pre-tax earnings to exceed the $527 million reported in the year ended June 30, 2017. Rolls Royce has said 380 engines globally are affected, including nine in the New Zealand carrier's fleet.
"Air New Zealand expects there will be some customer and operational impact to its international schedule as a result of the checks," general counsel Karen Clayton said in a statement to the stock exchange. "However, the airline does not expect this global issue involving some of the Trent 1000 engines that power its Boeing 787-9 Dreamliner fleet to materially impact FY18 earnings and previous guidance remains unchanged."
The airline said engines that have operated fewer than 300 cycles aren't affected, nor are Trent 1000 TEN model engines.
Air New Zealand's capital commitments stood at $1.38 billion as at Dec. 31, including one Boeing 787-9 for delivery in the 2019 financial year, seven Airbus A321 NEOs and six Airbus A320 NEOs for delivery between 2019 and 2022, and 12 ATR72-600s for delivery between 2018 and 2020. It received two new Dreamliners in the six months ended Dec. 31, taking that fleet to 11.
No comments yet
MARKET CLOSE: NZ shares fall as MSCI changes debated, Mercury falls, Fletcher gains
NZ dollar heads for 1.6% weekly fall as greenback finds favour on rate hike view
FMA keeping close tabs on Australian Royal Commission as AMP chief Meller departs
NZ's R&D tax incentive plan viewed as positive by business
SkyCity wants at least A$200M for Darwin casino; private consortium most likely buyer: report
Syft sales jump more than 50%, profit growth misses target on production costs
Fletcher shares gain after shortfall bookbuild cleared at premium to offer price
T&G Global to sell Kerikeri assets to Seeka in deal worth about $40m
USX: Syft Technologies update to shareholders
NZX first-quarter revenue edges up with busier secondary market