poor people who brought the stock for the 6c dividend , lost way more now
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poor people who brought the stock for the 6c dividend , lost way more now
If the tourism is going to drop next year thank God for the farmers.
A leading transport analyst expects domestic air tickets to continue to be discounted over the coming months as Air New Zealand grapples with falling demand.
https://www.1news.co.nz/2023/11/21/a...nd-stays-down/
down 19% since the one off div :scared:
Interesting chart …..US
Some bright spark says the gap could well be the excess deaths reported lately
https://www.bcdtravel.com/blog/bcd-r...in-new-report/
Air travel isn’t recovering consistently around the world. In some cases, demand or capacity haven’t returned to pre-pandemic levels; in others, the initial rebound may have ended, allowing more normal market conditions to resurface. As a result, the factors driving changes to airfares in 2024 will vary by market.
“Over the past two years, airfares have increased significantly,” said Jorge Cruz, executive vice president of Global Sales & Marketing at BCD. “As a result, using savings as a performance measure has been almost impossible for travel buyers. We advise companies to review their travel policies and their travelers’ booking behaviors to lower the overall cost of their travel programs.”
Still looking a bit tough for AIR …..H1 earnings about $200m v $399 last year
Includes that $45m of unclaimed refunds so really only about $150m …..assuming I interpret what they mean by include correctly
http://nzx-prod-s7fsd7f98s.s3-websit...376/409429.pdf
Hmm, not price sensitive because we had a nice wide range :t_up:
And don't dare extrapolate to the 2H which is looking "increasingly challenging". Is Air NZ a leading signal for the NZ economy?
Wonder if these unlikely to be used COVID credit things and going to be like a run off book in insurance. The gift that keeps on giving.
Should still be able to pay a dividend I guess.
Good to see more travel options on offer. Was Slim Pickens last year.
https://www.msn.com/en-nz/travel/new...95eb3917e&ei=9
"Airports on both sides of the Tasman have given the thumbs down to a proposed code share agreement between Air New Zealand and Virgin Australia for trans-Tasman flights." Source businessdesk.co.nz
Willis Airlines and Virgin(underarm bowlers division) are up to their old tricks again.
Single isle jets are like hens teeth at the moment with Boeing having doors blow out and Willis Airlines Airbusses needing engine re bores. Typical of airline executives to not let this crisis go to waste by manipulating competition across the ditch.
Boop boop de do
Marilyn
https://www.nzx.com/announcements/426371
On 13 December 2023, Air New Zealand updated its first half guidance and cautioned against extrapolating that guidance to the second half. The airline expected the second half of the financial year to be increasingly challenging given the ongoing impact of engine maintenance requirements, economic and inflation risks, and early signs of softness in domestic demand.
The upcoming Interim financial result for the six months ended 31 December 2023 will be consistent with that 13 December 2023 guidance.
https://www.nzx.com/announcements/426613
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.
Chair Dame Therese Walsh says the half year result represents the hard mahi of the Air New Zealand whānau, who rallied together in the face of unavoidable challenges.
“We knew this year would be tougher than the last, when pent up levels of demand and industry-wide capacity constraints drove one of the strongest financial results in our history.
“And while we have reported a solid first half result, it is against the backdrop of significant ongoing supply chain issues, particularly the additional Pratt & Whitney engine maintenance requirements on our A321neo fleet, which will see up to five of our newest and most efficient aircraft out of service at any one time across the next 18 months at least.
“On top of these operational challenges, we are now leaning into the reality of a worsening revenue and cost environment, which is expected to have a significant adverse impact on performance in the second half.
“Earlier this week the airline provided a full year profit outlook, noting among other things, a deterioration in the forward bookings profile. Intense international competition features heavily in the current environment, particularly for North America where our US competitors have not yet returned to China at scale, and for now have directed some of that additional capacity to the New Zealand market, putting pressure on yields.
“The business is pulling multiple levers to mitigate the impact of these headwinds, and this is a key focus for the team.
“Despite these short-term challenges, the airline is in a fundamentally strong position. Our balance sheet is robust, and the Board is committed to the airline’s Capital Management Framework as announced last August, including its ordinary dividend policy. Accordingly, the Board was pleased to announce a dividend of 2.0 cents per share for the first half.”
Chief Executive Officer Greg Foran says doing the basics brilliantly without ever compromising on safety has positioned the airline well to compete.
“Our on-time performance and contact centre wait times have improved. Food and beverage offerings have been enhanced. Inflight entertainment options and Wi-Fi have also been improved. An additional 400,000 people have joined our loyalty programme over the past year, lifting membership to 4.4 million. All these things, along with the manaaki shown by staff – taking care further than any other airline – have seen our customer satisfaction score return to pre-pandemic levels.
“The engine maintenance requirements for both Pratt & Whitney and Rolls Royce have seen our aircraft spend more time on the ground. While this is beyond our control, we are managing these issues with changes to our schedule and additional leased aircraft.
“Boeing has now confirmed that the first of the new 787 Dreamliners is unlikely to arrive until at least mid-2025, which will delay delivery of our innovative new Skynest. The interior retrofit of our current 787 fleet remains on track.
“To mitigate these challenges, we introduced a dry lease 777-300ER in November. A second dry lease 777-300ER will enter the fleet mid-year and we are well advanced on negotiations for a third.
“While the global aviation ecosystem remains under immense pressure, Air New Zealand is committed to providing the best experience possible to our loyal customers while we navigate these issues.”
2H 2024 Trading update
As noted in the airline’s market update on 19 February 2024, a number of continuing economic and operational conditions have deteriorated and are now expected to have a significant adverse impact on performance in the second half. These include the impact of additional competition on forward revenue performance, ongoing weakness in domestic corporate and government demand, temporary cost headwinds of $35 million in the second half to alleviate customer impacts and operational pressures, as well as ongoing cost inflation.
Outlook
In light of these conditions, the airline considers that performance for the second half of the 2024 financial year will be markedly lower than the first half.
In this context, and assuming an average jet fuel price of USD$105/bbl for the second half, the airline currently expects earnings before taxation for the 2024 financial year to be in the range of $200 million to $240 million. This range includes $20 million of currently assumed additional Covid-related credit breakage over the second half. Future redemptions of Covid-related credits remain uncertain and subject to further actions.
This announcement is authorised for release on the NZX and ASX by Jennifer Page, General Counsel & Company Secretary.
Is there anybody still here that bought AIR for around $7 in 2000 and has been holding for the last 24 years?
Interestingly, and this is a little known fact, buy and hold never fails to work with a big index like the S&P500. However, buy and hold is not guaranteed to work in two instances: 1) individual shares 2) commodities.
I can't say where this particular share will be in the future, of course. But the chart over the last 24 years for Air NZ made me want to post the above. I'd feel bad if I didn't pass on the information - it might be useful for a newer investor who has heard that holding single stocks for "the long term" will ensure good returns. Patience is not necessarily a virtue when it comes to owning just a handful of companies.
Monster Beverage and Philip Morris type shares, which have performed well for decades, are like needles in a galaxy sized hay stack. They're incredibly hard to find.
Buy and hold is working for wonderful companies or commodities provided buy them at wonderful prices. I agree buy and hold strategy cannot apply for weak stocks and commodities with more volatility. In a positive environment AIR could do well. High cost of doing business has eroded profit margins in many companies and industries.
Remember all the bonus payments staff used to get, basically because they had the money. I bet that could have been spent on the airline itself, providing better job security and maybe even making the company more competitive.
you need to remember that it’s part of an overall package. Air NZ pay less than market rate for most positions. The benefits (staff travel, insurance discounts, etc) and the (now non-existent bonis) makes up a good percentage. In real terms most staff are actually underpaid
Everyone thinks they are underpaid. You left out staff accommodation.
No money left either for the long talked about uniform update I guess, what a horrible sight each time I board an Air NZ flight. Did someone mentioned enhanced food and beverage in the post earlier? What a joke! I'm a very organised person and I struggle not to spill my food or drop my utensils when I dine in economy. Cardboard is great for holding hot food but the tray is small and the cardboard plate is tiny. I seriously don't know how the person that came up with this brilliant idea to expect most people to eat without making a mess. Really dumb when you think about it. Not only will it take cleaners more time to tidy up the plane and whatever the cleaners missed will give the next passenger that sits in the same seat a very bad impression. More testing required before changes are rolled out please Mr CEO. Up at the front in business class was no better last year when I flew to Asia. So much cost cutting and it now cost an extra $1,000! Is Air NZ's new business model "pay more for less"?
Hope Air NZ don’t have these problems with their chat function
Air Canada must honor refund policy invented by airline’s chatbot
https://arstechnica.com/tech-policy/...lines-chatbot/
https://www.nzx.com/announcements/429878
Air New Zealand reduces full year guidance
In February 2024, Air New Zealand issued guidance for the 2024 financial year, announcing expected earnings before taxation in the range of $200 million to $240 million. This range included the benefit of $65 million in Covid-related credit breakage for the year, with $45 million recognised in the first half, and $20 million of assumed credit breakage in the second half.
At that time, the airline reiterated a number of deteriorating economic and operational conditions which informed this earnings guidance (see summary provided below).
Since providing that guidance, Air New Zealand has continued to see softening in revenue conditions over the fourth quarter both domestically and on the North American market.
Domestic performance has seen ongoing softening, with challenging economic conditions and ongoing cost-of-living pressures. Government and corporate demand remains subdued.
North American performance continues to be impacted by very competitive pricing pressures, as the market adjusts to the significant capacity added into the New Zealand market by US carriers.
These softer revenue conditions are expected to result in lower underlying profitability for the 2024 financial year of approximately $40 million to $50 million.
Separately, following a significant decline in the rate of redemption of Covid-related credits in recent months, the airline has increased the assumed level of additional Covid-related credit breakage for the second half from $20 million to $50 million. Customers who have a Covid-related credit have until 31 January 2026 to book travel for completion by 31 December 2026.
2024 Outlook guidance
In light of the above and assuming an average jet fuel price of USD$105/bbl for the second half, the airline expects earnings before taxation for the 2024 financial year to be in the range of $190 million to $230 million. This range includes the $40 million to $50 million impact of deteriorating market conditions noted earlier, as well as a total of $95 million in Covid-related credit breakage for the 2024 financial year. Future redemptions of Covid-related credits remain uncertain.
The airline will continue to monitor the impact of market conditions as they evolve in the coming months.
Summary of conditions noted in February 2024 market releases:
• Increased capacity and pricing pressure from US carriers driving a weaker revenue performance on North American routes.
• The cumulative impact of significant inflation on the cost base.
• Ongoing weakness in domestic corporate and government demand.
• Temporary cost headwinds to alleviate impacts from the Pratt & Whitney global engine maintenance requirements totalling approximately $35 million for the second half of the financial year.
Ends
Hey Bob ..full year $200m say but really only about $100m
Just as well they kept $95m of credits not used …fares paid and travel not taken for things out of punters control
I’d call it theft …criminal …and if a shareholder ashamed of my company
Bonza Airlines in Oz gone broke
Planes been repossessed
I wonder how Biden's and DOT's new rules around cancelled/postponed flights getting paid out immediately - in cash will effect AIR?! Sorry. No credits AIR
https://www.transportation.gov/brief...efunds-airline
Well fares going up is really going to fix things .. take a leaf out of NZ Post's reactionary pricing manual ;)
Nothing like having a captive bunch of customers to line up as the Company's own ATM available at will to fix all ills in one or two swift swipes ;)
More competition from wide & afar might just be taking a second peak to see if they can eat AIR's lunch for them on the re-elevated fare pricing :)
Queer and Nasty Airlines and the spreadsheet jockeys who run Virgin(Under Arm Bowlers Division) will be looking with a keen interest at the repossessed 737 max's of bust Bonza Airlines. They would love to participate in the great Aussie tradition of kicking the Kiwi airline when it is down by operating these aircraft across the Ditch or on the NZ Main Trunk.
There are reports the aircraft have been whisked away to Canada which makes this scenario less likely.
Boop boop de do
Marilyn
Service with a smile from AIR:
https://www.nzherald.co.nz/business/...BHWWVH5E6MXDE/
Air New Zealand apologises to customer left in call centre limbo
People need to learn to have plan B when traveling and for god's sake don't take baby and toddler on flights unless it's absolutely necessary. I do not consider visiting grandparents as a good enough reason, wait till the kids are older and use social media in the meantime. Long hauls are not good for little ones and people on the flight shouldn't have to put up with unacceptable noise when trying to sleep. Air travel is just too cheap and simple nowadays, that's why some people treat it like a shuttle bus. I cringe every time I see people getting on a plane wearing flip-flops. Please treat your fellow passengers with more respect and long haul flying, especially, as a special occasion. I for one welcome price rise, so that flying can feel special again.
https://youtu.be/FEH8kZxaWS4?si=HTb9bQwuRsVKH8M3
I use to buy shares for their dividends years ago, including Air NZ. Took me a long time to appreciate how dividends aren't free. Rob Berger addresses the free money fallacy in the video above.
I wonder if NZers will finally give up on dividends and think about total return? Unlikely.
Hey! Is Air below it's covid low? Wow.