By Phil Boeyen, ShareChat Business News Editor
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Tuesday 30th April 2002 |
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The airline had previously picked a full-year loss before unusuals and tax of $63.4 million but says on current estimates it should "comfortably exceed" that figure.
"Air New Zealand advise they have experienced significant improvements in tourist traffic, a recovery in passenger numbers generally and cost reduction initiatives which have resulted in trading performance over the past two months being considerably better than the than the previous outlook," the company says.
"The final result is still clearly subject to the volatility of the industry, and the seasonal weakness traditionally experienced over the final three months of the financial year."
The latest update from the company will give support to reports on Monday that analysts at UBS Warburg had a target price of 50 cents per share on the airline's stock and believed it could go even higher if the airline adopts a low-cost model.
That report boosted the airline's stock price above the 40 cents a share level, the highest since the company's former A and B class shares were combined following last year's state-fund recapitalisation.
At current trading prices of around 44 cents per share the improvement in the airline's fortunes means the state's ordinary shareholding, for which it paid $585 million, is now worth $953 million. The state also owns $1.28 billion convertible preference shares, which it bought for 24 cents each.
Growing tourist numbers to New Zealand, which have rebounded after a slump in the wake of September 11, are believed to be helping the airline.
The stronger New Zealand dollar will also be boosting the company's bottom line, as it will be able to more easily pay such US dollar denominated costs as fuel bills and landing charges.
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