Air New Zealand (NZSE:AIR) Full Year 2024 Results

Key Financial Results

• Revenue: NZ$6.75b (up 6.7% from FY 2023).

• Net income: NZ$146.0m (down 65% from FY 2023).

• Profit margin: 2.2% (down from 6.5% in FY 2023). The decrease in margin was driven by higher expenses.

• EPS: NZ$0.043 (down from NZ$0.12 in FY 2023).

AIR Operational Performance

• Available seat kilometres (ASK): 42.07b (up 23% from FY 2023).

• Passenger load factor: 81.5% (down from 84.7% in FY 2023).

• Total aircraft: 110 (up by 4 from FY 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Air New Zealand Revenues Beat Expectations, EPS Falls Short

Revenue exceeded analyst estimates by 1.7%. Earnings per share (EPS) missed analyst estimates by 10%.

The primary driver behind last 12 months revenue was the New Zealand segment contributing a total revenue of NZ$4.12b (61% of total revenue). Notably, cost of sales worth NZ$5.02b amounted to 74% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Depreciation & Amortisation (D&A) costs, amounting to NZ$716.0m (45% of total expenses). Explore how AIR's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 3.2% p.a. on average during the next 3 years, compared to a 6.1% growth forecast for the Global Airlines industry.

Performance of the market in New Zealand.

The company's share price is broadly unchanged from a week ago.

Risk Analysis

You should learn about the 2 warning signs we've spotted with Air New Zealand.

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