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Air New Zealand Limited (NS) Analysis


AIR was NZ's State-owned airline until 1989 when a consortium of Brierley Investments and overseas airlines acquired the capital. Stock exchange listing followed the sale by BIL of 84m shares to the public at $2.40, with The Crown retaining specific rights. In 1996 a 50% stake in Ansett Australia was acquired for $540 million. Acquisition of the balance of Ansett Australia (from News Corporation) was completed in 2000.

Restructuring in 2001 resulted in an $885m NZ Government-funded equity rescue package which returned the airline to around 75% state ownership. The recapitalisation involved repayment of a $300m rescue loan by the NZ Government, by the issue of 1.28b convertible preference shares (at 24c each) to The Crown, which converted to shares on 31/1/2005, and a further issue of 2.16b ordinary shares to The Crown at 27c each. The plan included the merger of 'A' and 'B' shares, and was accelerated by the financial collapse of Ansett.

In November 2002, the company agreed to a strategic alliance with Qantas Airways but regulatory authorities rejected this in late 2003.

In August 2004 AIR initiated a 5:1 share consolidation.

In August 2007 it announced it would purchase four Boeing 777-300 extended range aircraft and in September 2007 Air Nelson, a fully-owned subsidiary of AIR, confirmed it would acquire two additional Bombardier Q300 aircraft to boost capacity into and out of Nelson and other regional centres.

In January 2011 the company announced it had acquired a 14.9% substantial shareholding in Australian-based airline Virgin Blue.

AIR has been granted Listing with a 'Non-Standard' ("NS") designation. This designation was granted because of provisions in AIR's constitution relating to the ownership and control of AIR's ordinary shares. For further information, please see a copy of the waiver under Documents on AIR's homepage on


The following information was extracted from Air New Zealand's Half Year results, released on 22 February 2024:

Key points

  • Earnings before taxation of $185 million
  • Passenger revenue of $3.1 billion driven by a significant ramp-up in capacity across the international network
  • Airline is currently reviewing pricing and capacity to reflect ongoing inflation pressures
  • Unimputed ordinary interim dividend of 2.0 cents per share declared
  • Significant improvement in onboard experience, reliability and customer response times
  • Tougher forward trading environment. Earnings before taxation for the 2024 financial year now expected to be in the range of $200

million to $240 million, including $20 million of currently assumed additional Covid-related credit breakage

Air New Zealand has today announced earnings before taxation of $185 million for the first half of the 2024 financial year. Net profit after taxation was $129 million. This is an expected reduction on the comparable period last year when the airline recorded one of its highest-ever results following the rapid return of air travel as New Zealand’s borders reopened. Based on the airline’s balance sheet strength and the result announced today, Air New Zealand shareholders will receive an unimputed interim dividend of 2.0 cents per share. The dividend will be paid on 21 March, to shareholders on record as at 8 March. This equates to a payout ratio of 41 percent.

Passenger revenue of $3.1 billion was up 21 percent, driven by a significant ramp-up in capacity across the international network. Demand was stable in most markets, but signs of softness in domestic corporate and Government demand was experienced from September. Overall capacity was up 29 percent on the comparative six-month period. Operating costs, including fuel, increased 21 percent due to a substantial increase in long-haul flying this year.

Inflationary pressures also continue to be felt. Non-fuel operating costs have increased around 5 percent or $100 million due to price inflation, which is on top of an increase totalling 15 to 20 percent across the last four years. The cumulative effect of these increases is having a significant impact on the cost of providing air services, including on the domestic network, and the airline is currently reviewing fares and capacity to better reflect ongoing cost pressure.

Disclaimer: This section is provided as general information only. It is not intended as a substitute for legal or professional advice to company directors and officers or investors. NZX Limited disclaims any liability arising from the use of this information.