AIR - Air NZ.

[causecelebre]

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

[mike2020]

Everyone thinks they are underpaid. You left out staff accommodation.

[mikelee]

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"?

[winner69]

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/

[Sideshow Bob]

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

[winner69]

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

[Sideshow Bob]

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

While they had a horror run through Covid, must be nice to have that sort of funds helping to fund your company!

[winner69]

While they had a horror run through Covid, must be nice to have that sort of funds helping to fund your company!

Operationally basically running breakeven or loss 2nd half ot year

No wonder fares going up tomorrow