(Reuters) -Air New Zealand on Thursday signalled robust customer demand for the 2024 financial year, while recording a large annual profit helped by a sharp rebound in travel demand and lower jet fuel prices.
While the airline expects strong demand across markets for 2024, it also sees international competition, volatile fuel prices, ongoing wage inflation and increased airport charges to impact future customer demand and profitability.
Air New Zealand also declared a special dividend of 6 New Zealand cents per share, making it the first dividend since February 2020.
The airline revised its capital management framework from fiscal 2024 and aims for an ordinary dividend payout ratio of 40% to 70% of net profit after taxation.
It also said that it will return excess capital via special dividends or share buybacks while targeting liquidity range of NZ$1.2 billion to NZ$1.5 billion in financial year 2024.
Demand for air travel has boomed since the removal of pandemic-related restrictions and border closures. A shortage of aircraft, parts and labour has also contributed to higher air fares globally.
For the year ended June, Air New Zealand posted earnings of NZ$585 million ($349.65 million) before tax and other significant items, compared with its forecast of no less than NZ$580 million.
It posted a loss of NZ$725 million a year earlier.
($1 = 1.6731 New Zealand dollars)
(Reporting by Nausheen Thusoo and Harish Sridharan in Bengaluru; Editing by Shailesh Kuber)
