Air New Zealand staff have won a bonus after the carrier’s annual profits almost doubled.
Earnings before other significant items and taxation for the 2016 financial year came in at a record NZ$806 million, compared to NZ$474 million in the prior year.
Earnings before taxation were NZ$663 million with net profit after taxation of NZ$463 million, an increase of 40% and 42%, respectively.
A total of 8,200 Air New Zealand employees are being award with a company performance bonus of up to NZ$2,500 to recognise the record result.
he financial results follow the news that Air New Zealand will be spending more than £55 million increasing the number of premium seats on its Boeing 787-9 Dreamliners and refurbishing its Boeing 777-300 fleet, including aircraft which operate daily from Heathrow.
Chairman Tony Carter said: “We recognise the importance of working collaboratively with our unions through our high performance engagement programme to achieve results that benefit both our business and our people. This has been an important contributor to our ability to achieve efficiencies.”
The airline ended the financial year with customer satisfaction at record highs, according to chief executive Christopher Luxon.
“These are the best results ever in our 76 year history and I am extremely proud of the airline’s achievements, our people and the contribution we make to supercharging New Zealand’s success,” he said.
“Alongside connecting New Zealanders and Kiwi businesses with each other and the world, we employ 11,300 staff, will pay the government around NZ$260 million in total dividends and will pay income tax of around NZ$200 million for the year.”
Looking ahead, he acknowledged there is increased competition as other international airlines also add capacity in recognition of strong tourism demand for New Zealand.
Given the uncertain impact of competition and based on the current market conditions, the airline expects earnings before taxation for the full year 2017 to be in the range of NZ$400 million to NZ$600 million.
“There’s no doubt customers have more choice but we are confident that we have the right pricing, products and services to stay a step ahead of the competition as we grow our business at home and overseas,” Luxon said.