Air New Zealand Limited (NS) Analysis

Overview

AIR was NZ's State-owned airline until 1989 when a consortium of Brierley Investments and overseas airlines acquired the capital. Stock exchange listing followed the sale by BIL of 84m shares to the public at $2.40, with The Crown retaining specific rights. In 1996 a 50% stake in Ansett Australia was acquired for $540 million. Acquisition of the balance of Ansett Australia (from News Corporation) was completed in 2000.

Restructuring in 2001 resulted in an $885m NZ Government-funded equity rescue package which returned the airline to around 75% state ownership. The recapitalisation involved repayment of a $300m rescue loan by the NZ Government, by the issue of 1.28b convertible preference shares (at 24c each) to The Crown, which converted to shares on 31/1/2005, and a further issue of 2.16b ordinary shares to The Crown at 27c each. The plan included the merger of 'A' and 'B' shares, and was accelerated by the financial collapse of Ansett.

In November 2002, the company agreed to a strategic alliance with Qantas Airways but regulatory authorities rejected this in late 2003.

In August 2004 AIR initiated a 5:1 share consolidation.

In August 2007 it announced it would purchase four Boeing 777-300 extended range aircraft and in September 2007 Air Nelson, a fully-owned subsidiary of AIR, confirmed it would acquire two additional Bombardier Q300 aircraft to boost capacity into and out of Nelson and other regional centres.

In January 2011 the company announced it had acquired a 14.9% substantial shareholding in Australian-based airline Virgin Blue.

AIR has been granted Listing with a 'Non-Standard' ("NS") designation. This designation was granted because of provisions in AIR's constitution relating to the ownership and control of AIR's ordinary shares. For further information, please see a copy of the waiver under Documents on AIR's homepage on nzx.com

Performance

The following information was extracted from Air New Zealand's Half Year results, released on 20 February 2025:

Summary

• Earnings before taxation of $155 million
• Net profit after taxation of $106 million
• Network capacity down 4 percent, with up to 5 narrowbody and 3 widebody jets grounded due to additional global engine maintenance requirements
• Unimputed interim ordinary dividend of 1.25 cents per share declared
• Share buy-back of up to $100 million announced

Air New Zealand has today announced earnings before taxation of $155 million for the first half of the 2025 financial year, achieving a result at the upper end of the guidance range provided to the market in November 2024. Net profit after taxation was $106 million.

Chair Dame Therese Walsh said the result highlights the airline’s resilience and adaptability, amid a continuation of significant operational and economic headwinds that have persisted since the second half of the 2024 financial year.