Thursday, August 29, 2024 Air New Zealand has reported its financial results for the 2024 fiscal year, with earnings before taxation amounting to $222 million. This marks a significant decrease from the previous year’s $574 million, a decline that was anticipated following the extraordinary financial performance in 2023, when New Zealand’s border reopening bolstered the airline’s earnings. The net profit after taxation for 2024 stands at $146 million.
The airline experienced a solid first half of the financial year; however, the latter half presented increasing challenges due to a combination of operational and economic headwinds. The economic climate in New Zealand, particularly a weaker domestic demand, notably impacted the corporate and government travel sectors, contributing to the overall financial downturn. Operational difficulties further compounded these challenges.
Accelerated maintenance demands for Pratt & Whitney PW1100 engines led to up to six of Air New Zealand’s Airbus neo aircraft being grounded at various times. Similarly, additional maintenance needs for the Trent 1000 engines, which power the Boeing 787 Dreamliner fleet, resulted in up to three Dreamliners being out of service at any given time. These operational disruptions, alongside fierce competition from US carriers and the ongoing effects of high inflation, significantly affected the airline’s performance in 2024.
Despite these challenges, Air New Zealand saw an 11 percent increase in passen.