CEO Christopher Luxon estimates Air New Zealand is one of only about seven airlines globally that are rated as investment grade, a reflection of its consistent performance. The carrier reported a record net profit of NZ$327 million ($208 million) for the fiscal year through June 30—its fourth consecutive year of earnings growth and its 13th in the black.
Luxon notes the airline’s long run of success has been achieved despite external forces such as economic shocks in the European, U.S. and Asian markets, volatile oil prices, and fluctuating exchange rates. This indicates the airline can continue to prosper despite the latest challenges, he says.
Among the potential threats are financial jitters in China and elsewhere in Asia, an influx of Chinese airline capacity, the impending expansion of Australia’s Jetstar to New Zealand regional routes, and the prospect of American Airlines or Qantas entering the U.S.-New Zealand market.
Air New Zealand is “fitter than it’s ever been, and is in a stronger financial position to be able to fight several battles at the same time,” Luxon says. He notes that dealing with volatility in global markets is an inescapable reality of the airline industry. The carriers that can adapt to new situations the quickest are the ones that will thrive, he says.
Having carved out one of the airline industry’s strongest financial records in recent years, Air New Zealand is well positioned to confront a new wave of competitive challenges both at home and overseas.
CEO Christopher Luxon estimates Air New Zealand is one of only about seven airlines globally that are rated as investment grade, a reflection of its consistent performance. The carrier reported a record net profit of NZ$327 million ($208 million) for the fiscal year through June 30—its fourth consecutive year of earnings growth and its 13th in the black.
Luxon notes the airline’s long run of success has been achieved despite external forces such as economic shocks in the European, U.S. and Asian markets, volatile oil prices, and fluctuating exchange rates. This indicates the airline can continue to prosper despite the latest challenges, he says.
Among the potential threats are financial jitters in China and elsewhere in Asia, an influx of Chinese airline capacity, the impending expansion of Australia’s Jetstar to New Zealand regional routes, and the prospect of American Airlines or Qantas entering the U.S.-New Zealand market.
Air New Zealand is “fitter than it’s ever been, and is in a stronger financial position to be able to fight several battles at the same time,” Luxon says. He notes that dealing with volatility in global markets is an inescapable reality of the airline industry. The carriers that can adapt to new situations the quickest are the ones that will thrive, he says.
Adrian Schofield - Aviation Week Network