Underlying profit of $222m was line with the guidance the airline provided in May. Photo: AFP
Air New Zealand's full year profit dropped by two thirds but met expectations, with the second half more challenging than the first.
The company's net profit for the financial year ended June is down 65 percent to $146 million compared to $412m the year earlier.
The underlying profit of $222m is in line with the guidance the airline provided in April, while revenue grew 7 percent to nearly $7 billion.
Chair Dame Therese Walsh said was a difficult year from a macroeconomic and operational point of view, and estimated $100m would have been added to the underlying profit if the airline had been able to operate its aircraft and schedule as intended.
Chief executive Greg Foran said the scheduling changes were unavoidable, but the challenges facing the airline were not unique to Air New Zealand, with supply chain issues delaying delivery of aircraft, along with rising costs and staff shortages in key areas, such as engineering.
"We took immediate action to minimise the disruption, leasing three Boeing 777-300ERs, securing additional spare engines and adjusting our network and schedule to deliver greater reliability," he said.
"We are very proud of what our team managed to achieve, but we know it has been far from perfect for impacted customers scheduling changes while travelling with us this year."
Still, he said the company was committed to capital investment of an estimated $3.2 billion over the next five years.
Foran did not offer profit guidance for the 2025 year, as difficult conditions were expected to continue for the rest of the calendar year.
The airline will pay shareholders a full year dividend of 3.5 cents a share.
