Air New Zealand's profit has fallen 18 percent as the airline faced severe disruption from engine maintenance headaches and the economic slowdown.
Key numbers for the six months ended December compared with a year ago:
- Net profit $106m vs $129m
- Revenue $3.4b vs $3.47b
- Pre-tax earnings $155m vs $185m
- Interim dividend 1.25 cents per share vs 2 cps
The airline said it had to ground five narrowbody and three widebody jets during the period as a result of additional engine maintenance requirements.
Chair Dame Therese Walsh said the result highlighted the airline's resilience and adaptability amid economic and operational headwinds.
The airline's preferred earnings metric, pre-tax earnings, came in at the upper end of its guidance range.
Passenger numbers fell 3 percent, while passenger revenue decreased five percent to $2.9 billion, as the airline had to ground multiple aircraft due to engine maintenance requirements, and due to weaker domestic demand.
Air New Zealand also announced the start of a $100 million share buy-back programme.
"The share buy-back programme we have announced today reflects our confidence in the strength of Air New Zealand's fundamentals and our commitment to delivering value to our shareholders, while ensuring we remain well-positioned for the future,"
Chief executive Greg Foran said operational challenges were significant in the first half of the financial year.
"With over $1 billion worth of our newest, most efficient aircraft grounded at times, it's been a tough year so far. Delivering the performance we have and maintaining such a strong balance sheet, is a real credit to our people and I'm proud of what we have achieved," he said.
The airline received $94m in compensation from engine makers as a result of additional maintenance requirements.
Had the problem not eventuated, the airline estimated its first-half earnings would have been about $40m higher.
For the second half of the year, Air New Zealand estimated it would have up to 11 jet aircraft grounded at times, and warned of uncertainty ahead.
The airline expected second half performance to be "significantly lower than the first-half".
Citing the uncertainty, the airline did not provide full-year guidance.
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