AIR - Air NZ.

[Sideshow Bob]

Auntie Helen & Uncle Mickey must be pleased - apparently not tempted into selling...

http://www.nzherald.co.nz/section/3/...ectid=10426127

Full announcement:

Air New Zealand has today announced a profit before unusuals and tax of $109 million for the six month period ending 31 December 2006, an increase of 35% ($28m) on the poor performance in the same period last year.

Net profit was $74 million, up 61% ($28m), and higher yields contributed to a 12% increase in operating revenue. Based on the airline's improved profitability and outlook, the Board has increased the interim dividend to 3 cents per share, or $32 million.

Air New Zealand Chairman John Palmer said the airline's progress in the first six months of the year was pleasing in the face of significant challenges like high fuel prices, a weaker New Zealand dollar and intense competition from other destinations.

"All our key metrics - including yield, passenger numbers, revenue, profitability and share price are up, despite significant external pressures," Mr Palmer said.

Jet fuel continued to be the company's most significant cost. The average price of fuel was up 13% over the last year, and 55% over the same period two years ago.

Mr Palmer said that in 2003 the airline embarked on a substantial $2.6 billion capital investment programme. Subsequent to this, it sought to strengthen its balance sheet through a capital raising to shareholders.

With this current cycle of fleet investment coming to an end, no jet aircraft arriving until 2010, and strong gearing position of 46.7%, the airline is now in a position to return some cash to shareholders.

"Although the operating environment is still very challenging, we feel confident now about the ability to release some of the cash holdings from the balance sheet," he said.

"With that in mind, a review of our current medium-term financial and cash projections has prompted the Board to declare a special dividend of $105 million, or 10 cents per share," said Mr Palmer.

The record date for the interim and special dividends is the 13th of March 2007 with the payment date 26 March 2007. The dividend will be fully imputed and supplementary dividends will be available for overseas shareholders.

The Company's dividend policy has also been changed to reflect the Board's desire to maintain a consistent and growing dividend stream, in normal course of events, and this is expected to be between 25 to 50 percent of net profit after tax.

Mr Palmer said that despite the encouraging performance, the airline's returns were still below their potential.

"The Board's view is that we are not yet achieving the levels of performance we consider appropriate to properly reward shareholders for the capital employed and associated investment risk," Mr Palmer said.

Chief Executive Rob Fyfe said it was important to consider Air New Zealand's performance over the past six months within a wider context.

"We are confident in our strategic direction and will continue to drive the changes we need to ensure the airline is world class in everything it does," Mr Fyfe said.

"As a niche player, we will only achieve these standards by transforming our airline into one that is nimble, flexible and innovative, able to successfully compete in a demanding operating environment."

Mr Fyfe said priorities for the business over the next six months included clarifying the future operating model for Airport Services, growing the domestic business, consolidating Air New Zealand's position on the Tasman and stimulating demand for the new Vancouver service, which will launch in November.

"We will also continue to simplify and reduce costs."

Over the past six months Air New Zealand has achieved additional cost savings of $63 million and is on track to achieve targeted cost savings of $130 million for the full year.

"This is the final year of our four-year cost saving programme, which originally targeted savings of $245 million per annum once fully implemented. By the end of thi

[Steve]

And not a mention of where all the 'doom & gloom if we are not allowed to codeshare' has gone...

[huds]

Up 5% today, not bad at all.

[winner69]

what the biscuit saga?

help the share price?

[BRICKS]

quote:Originally posted by winner69

what the biscuit saga?

help the share price?

THIS rubbish should get an AWARD.. [8D]

[ScrappyO]

It nice to see AIR NZ doing so well.
The days of sp decreases look gone for now .

[trackers]

quote:Originally posted by kiwigold

Yes, up ,up and away ................this stock isn't popular on this forum , but I dare say some of the detractors here may be kicking themselves now.

Listened to Rob Fyfe speak at a leadership function about a fortnight ago - quite inspirational, seems like he's got things well under control over there

[BRICKS]

BRICKS has always called AIR a winner but NZ full of knockers with NO money, take RBD a knockers paradise you got to take a chance if you wait for a chart to make the move your missed the BOAT..

$2.60 something you must have your hart in your hand but best of luck to the winners.. [8D]

[rmbbrave]

quote:Originally posted by rmbbrave

http://www.stuff.co.nz/3956643a13.html

The jobs of 1850 Air New Zealand front-line staff are up in the air as their employer weighs up contracting out the work they do to a Spanish firm. Alan Wood reports.


Air New Zealand's proposal for front-line work to be outsourced to a consortium led by Spanish firm Swissport created an uproar among ticketing and baggage and service staff when it was announced in October.

But if Air NZ's turbulent staff-management is set aside and the airline is judged by its share price alone, it is on the right track, analysts note. Its shares are close to recent highs. The shares closed yesterday up 3c at $2.19.

And I bought in at 1.43

Not too far away from doubling my dosh.

[rmbbrave]

Air NZ shares soar
Air New Zealand shares soared to their highest level since September 2003 yesterday, thanks to cheaper fuel and the airline's improved performance.

The shares rose nearly 7 per cent or 17c to $2.67, easing back 2c at the close of trading. The last time they were higher was three-and-a-half years ago when they hit $2.98.

The spike follows an Air NZ update and industry conditions which one analyst called a near "perfect confluence" of factors.

Group-wide yields improved 10.1 per cent for the year to date, and the airline's March passenger load factor – the proportion of seats filled – improved by 7 percentage points compared to a year earlier.

That lifted the load factor to 79.5 per cent – the result of an 8.3 per cent increase in traffic numbers despite group-wide capacity reductions of 1.3 per cent, Air New Zealand said.

Centre for Asia Pacific Aviation executive chairman Peter Harbison said this week that Air New Zealand had been doing the right things for the past couple of years.

"It's really quite impressive," he said.

Along with focusing on costs, the company had been quite good at pruning unprofitable routes, and the strong New Zealand dollar had lowered its jet fuel costs.

Mr Harbison said the airline industry was also enjoying a sweet spot.

Economies were strong, generating business, at the same time as the airline industry was a little deprived of capacity, as few new aircraft had gone into service.

So the average number of passengers on each flight had gone up, leading to an increase in average fares within the industry, which went straight to profitability, Mr Harbison said.

However, Air NZ had some potentially large competitors, including Qantas subsidiary Jetstar and Virgin Blue, and the possibility of Tiger Airways looking across the Tasman after establishing itself in Australia.

Air New Zealand was vulnerable on the trans-Tasman route, which was a disproportionately large part of its activities, Mr Harbison said.

"It's a good time to be positioning well and I think by adding capacity to their own fleet, they're (Air NZ) sending out a signal that we're not going to surrender the fort very easily."

http://www.stuff.co.nz/4032854a13.html