After one or maybe two bumper years, airlines worldwide are bracing themselves for a change in fortunes as they report their 2024 financials. Today, carriers on either side of the Tasman Sea faced the media to deliver their 2023/24 Financial Year reports, and they both gave a vastly different presentation compared to a year ago. Air New Zealand's headwinds Today, in Auckland, Air New Zealand released its results for the twelve months ending June 30, 2024 (FY24).
Compared to FY23, operating revenue increased by 7%, but underlying profit plummeted by 61%, net profit by 65% and operating cash flow by 43%. The airline's underlying profit fell from NZ$574 million to NZ$222m ($207-$140m), while net profit fell from NZ$412m to $146m ($260-$92m). Financial markets operate in mysterious ways, and it appears that keeping them informed and not delivering surprises means more than the actual numbers reported.
Air New Zealand said the profit drop was "an expected reduction" compared to the prior year when it recorded one of its highest-ever results as the nation burst out of the pandemic. With a solid profit under his belt Air New Zealand CEO Greg Foran thanked customers for their loyalty while the airline emerged from COVID. The airline had reported a solid first half but foreshadowed that the good times were under threat.
Those threats were real and included the general economic conditions, inflationary pressures on costs and the ongoing aircraft unavailability due to engine issues. Air.