Air New Zealand (ANZ) says it performed strongly in the year to 30 June, blaming a NZ$600 million ($260 million) after-tax loss on a one-off accounting adjustment, and plans to spend AU$250 million ($140 million) on in-flight services to help Ansett (which it has bought) battle Qantas and domestic startups Virgin Blue and Impulse.
A NZ$786 million accounting hit against a previously unrecognised tax liability, bringing ANZ into line with Australian accounting standards, obscured an imp-roved operational performance which executive chairman Sir Selwyn Cushing says will continue.
Cushing predicts annual earnings before interest and tax will be raised by NZ$350 million a year within three years, with 60% of the improvement coming from restructuring following the Ansett takeover and the rest from increased sales. Integration projects should net $107 million this year.
Ansett Holdings reported a 28% drop in operating profits for the year to AU$101.6 million, with fuel price and exchange rate changes offsetting growth in passengers, revenues and loads. Ansett Australia profits dropped 41% to AU$96.7 million, while Ansett International posted an $8.1 million profit. Regional profits fell 67% to $5.2 million.
A new chief for the group is expected to be appointed soon.
Source: Flight International
