Air NZ reduces full year EBT guidance after challenging H2FY2018/2019

    Air New Zealand reduced (30-Jan-2019) earnings before tax (EBT) guidance to between NZD340 million (USD232.2 million) and NZD400 million (USD273.2 million) in FY2018/2019, inclusive of Rolls-Royce engine issues and updated revenue forecasts based on forward booking trends. Air New Zealand CEO Christopher Luxon said concerns over softer revenue growth in H2FY2018/2019 have promoted the carrier to review network, fleet and cost base to bolster business performance. Mr Luxon noted: “Rolls-Royce engine issues continue to be challenging for the business, both commercially and operationally, but are expected to improve as the year progresses”, the carrier stated. Air New Zealand reported revenue growth is forecast to remain positive, albeit at a slower rate than previously anticipated including in leisure travel within domestic New Zealand and softening inbound tourism traffic. The airline also reduced rate of capacity growth to approximately 4% from an original capacity guidance of 4% to 6%. Assumed average jet fuel price is USD75 per bbl for the remainder of FY2018/2019, with average jet fuel price for estimated assumed at USD81 per bbl for FY2018/2019.