Air New Zealand net profit down 39% in first half of 2023

Air New Zealand reported a first half of 2023 net profit of $129 million, down 39% from $213 million in the same period last year. Operating revenue was up 13% to $3.74bn. The airline said it continues to be impacted by inflationary pressures and the increase in non-fuel operating costs. ""We knew this year would be tougher than the last, when pent up levels of demand and industry-wide capacity constraints drove one of the strongest financial results in our history,"" said Air New Zealand chair Dame Therese Walsh. Walsh added: ""And while we have reported a solid first half result, it is against the backdrop of significant ongoing supply chain issues, particularly the additional Pratt & Whitney engine maintenance requirements on our A321neo fleet, which will see up to five of our newest and most efficient aircraft out of service at any one time across the next 18 months at least."" The business is ""pulling multiple levers"" to leverage against the headwinds pushing against the company., including the delay of the airline's 787 Dreamliners to at least mid-2025. Air New Zealand CEO Greg Foran said: ""To mitigate these challenges, we introduced a dry lease 777-300ER in November. A second dry lease 777-300ER will enter the fleet mid-year and we are well advanced on negotiations for a third."" The company said that the results are expected to have a ""significant adverse impact on performance"" in its second half 2024 report, adding that ""performance for the second half of the 2024 financial year will be markedly lower than the first half."" The company's shares fell around 1.64% at market close on February 22 following the report's release.