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Air New Zealand has delivered a modest profit for 2024-25 following a year of financial and operational headwinds.
In what will be Greg Foran’s last full year as CEO, the Kiwi flag carrier posted a net profit after taxation of NZ$126 million (around AU$113 million), down on the previous year, off the back of NZ$189 million in pre-tax earnings.
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“This is a solid result in a year where the airline faced real operational and economic pressure. It speaks to the capability of the team, the robustness of the business, and the financial discipline that Greg has instilled during his time as CEO,” said the airline’s chair, Dame Therese Walsh.
“While near-term challenges remain, our balance sheet is strong, and our strategy is clear.
“Greg has led the business through an extraordinary period. He’s been clear, considered, and focused, and leaves Air New Zealand in a position of real strength. On behalf of the Board, I want to thank him for his leadership.”
The result comes as Air New Zealand’s available seat kilometres (ASK) capacity drops four per cent from the previous year, with ongoing maintenance issues having grounded up to six narrow-body and five wide-body jets at a time.
According to Foran, the airline had “remained focused on what it could control, making purposeful decisions to support customers and maintain schedule reliability”.
“We acted early and decisively, securing additional engines and aircraft, and optimising our schedule to keep customers moving. While this came at a significant cost, it was the right decision to deliver for our customers and maintain network stability,” he said.
“We are confident in the medium-term recovery path but note the next year will likely be every bit as constrained as the last. Unfortunately, there are no quick fixes, and navigating the next two years will require the same focus and discipline we’ve shown to date.
“While we’re not through it yet, we are seeing early signs that the most acute phase of disruption will be behind us within the year. The path to recovery won’t be linear, but we’re approaching it with focus and discipline.”
The airline also says it is seeing signs of improvement, and “knows what needs to happen to lift [its] financial performance”.
“Good progress is already underway, and it will become increasingly evident as the network scales back up and our transformation work continues,” said Foran.
“While we aren’t yet seeing signs of recovery in the local economy, we remain confident that demand will return, and that we’re well placed to respond when it does.
“The year ahead will still have its challenges. System-wide aviation costs will be around $85 million higher, driven by increased air navigation fees, passenger levies and landing charges. Engine constraints will also remain a factor.
“But we’ve got the right strategy, a strong balance sheet, and a team that continues to deliver with heart, and that gives us real confidence in what lies ahead.”
Foran, who is leaving Air New Zealand on 20 October, will be succeeded by the company’s chief digital officer Nikhil Ravishankar.
