Sharechat Logo

Air NZ profit warning follows plane upgrade announcements

Monday 27th May 2019

Text too small?

High aviation fuel prices have knocked up to $60 million off Air New Zealand's forecast pre-tax profits in just two months.

The airline has dropped guidance for earnings this financial year to bottom of its previously announced range.

"Based on the current market environment and reflecting an additional approximately $25 million headwind from increased jet fuel prices (assuming an average price for the second half of the year of US$78 per barrel), we are targeting 2019 earnings before taxation to exceed $340 million," the company said.

That compares with a target range for operating earnings of between $340 million and $400 million given on March 28.

The announcement to the New Zealand Stock Exchange was in a slide pack released for an investor presentation this afternoon and came some four hours after the national carrier trumpeted the inking of a deal with aircraft manufacturer Boeing for eight new Dreamliner 787-10 for a discounted price against a list price for that many planes of US$2.7 billion.

Air NZ's shares were trading at $2.71, down 0.4 percent on Friday's close, after the announcement hit the exchange.

(BusinessDesk)



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report