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Air New Zealand posts 2.5% rise in annual profit, lowers guidance
[BENGALURU] Air New Zealand Ltd said on Thursday annual profit before tax rose 2.5 per cent, slightly above expectations, but flagged lower earnings guidance for fiscal 2019 due to higher fuel prices.
The national carrier reported a pre-tax profit, the most closely watched measure of its performance, of NZ$540 million (S$492.44 million) for the year to June 30, compared with NZ$527 million a year ago, boosted by strength in the domestic market and robust tourism.
The airline is one of several Boeing Co 787 operators globally affected by maintenance issues on Rolls-Royce Holdings PLC's Trent 1000 engines and excluding a NZ$30 million to NZ$40 million charge from the Rolls-Royce issues, it forecast fiscal 2019 underlying pre-tax profit in a range of NZ$425 million to NZ$525 million.
This estimate assumes an average jet fuel price of US$85 per barrel compared to the US$75 per barrel noted this year, which was partially offset by the airline's fuel hedging programme.
Annual pre-tax profit narrowly beat average forecasts for a NZ$539 million pre-tax profit according to six analysts polled by Thomson Reuters I/B/E/S.
Revenue for the year rose 7.4 per cent to NZ$5.49 billion, the company said, and it declared a final dividend of NZ$0.11 a share, in line with the payout last year.