AIR - Air NZ.

[Onemootpoint]

The competition is heating up on the traditionally strong, dominant AIR trans Tasman routes:

Qantas announces major boost to New Zealand services

https://www.stuff.co.nz/travel/news/...aland-services

[Sideshow Bob]

As good as it gets for Qantas?

https://www.theage.com.au/business/c...ay+24+May+2023

Same for Air NZ??

[Onemootpoint]

More competition coming soon on an exclusive AIR route - Perth. As it is the current route is served by a wet lease (I believe) and not up to the usual standard of AIR. Until October apparently.


Malaysian airline Batik Air to take on Air NZ

https://www.stuff.co.nz/travel/news/...take-on-air-nz

[Valuegrowth]

https://www.nzherald.co.nz/travel/be...DRWNGJFQRKZ3A/

[Sideshow Bob]

https://www.nzx.com/announcements/412718

Air New Zealand last provided earnings guidance for the 2023 financial year to the market on 27 April 2023, and is today providing an update to that guidance.

Since the previous update, the airline has experienced stronger ongoing demand than usually observed at this time of the year, which is typically considered the airline’s off-peak period.

In addition to this, US dollar jet fuel prices have declined even further and have been consistently below those assumed in the earnings guidance provided in April.

On the basis of the updates above, and assuming an average jet fuel price for June of US $89 per barrel, the airline now expects earnings before other significant items and taxation for the 2023 financial year to be no less than $580 million. This compares with the prior guidance range given in April of $510 million to $560 million.

Air New Zealand continues to invest in our people, our customers and our digital capabilities. As indicated at the interim results in February 2023, over the next five years the airline is investing approximately $3.5 billion in aircraft and retrofitting alone.

Looking ahead to the 2024 financial year, the airline remains mindful of the uncertain economic environment it is facing into. With more capacity entering the market in the coming months, fares are expected to moderate from the current peaks.
Ends.

[winner69]

Auckland to Auckland seems a popular international flight these days

https://www.rnz.co.nz/news/national/...-to-fuel-issue

[SailorRob]

Airlines are capital intensive businesses and AIR have probably averaged $600M+ per annum on new assets in normal time.
The $3B5 figure is not particularly surprising, most of the purchases were flagged years ago.
With airframes being depreciated over 18 years, engines upto 15 years and old assets disappearing from the register the corresponding rise in D&A will be 'minor'.

How is this any different from my post highlighting that you need to understand returns on capital, for which you called me pretentious?

You show you do actually have some understanding of what I'm talking about, so why attack?

[Sideshow Bob]

http://nzx-prod-s7fsd7f98s.s3-websit...663/397150.pdf

Op stats for May. Interesting comparison to FY19 in the stats. Generally, close but slightly behind pre-Covid levels.

Passenger load factor lagging a bit though.

[winner69]

A320’s got dodgy engines …most need to be inspected

Hopefully wont disrupt AIRplanes

[Balance]

A320’s got dodgy engines …most need to be inspected

Hopefully wont disrupt AIRplanes

Old news, w69.

Was back in April and 150,000 passengers were affected - so rebooking etc etc.