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Air New Zealand Limited (ASX:AIZ)

ALERT: Price-sensitive ASX Announcement for AIZ
Current share price for AIZ : $0.355 -0.17 (-32.38%)+
Announcement
Release
16 Apr 2025 7:30AM
Price at Release
$0.525
Full Release
download
Summary
Air New Zealand has provided a trading update, revealing a significant reduction in expected compensation from engine manufacturers for the second half of the 2025 financial year, despite an increase in grounded aircraft. The airline anticipates recognizing compensation between $35 million and $40 million, markedly lower than the $94 million received in the first half. This shift is attributed to changes in how unserviceable engines are handled for compensation purposes. Furthermore, Air New Zealand projects earnings before taxation for FY25 to be between $150 million and $190 million, factoring in anticipated compensation and credit breakage.
Key Points
  • Air New Zealand expects compensation of $35 million to $40 million in the second half of FY25.
  • This compensation is significantly lower than the $94 million recognized in the first half.
  • The reduction is due to changes in the compensation framework regarding unserviceable engines.
  • The airline projects FY25 earnings before tax to be between $150 million and $190 million.
  • Ongoing negotiations with engine manufacturers are complicating compensation levels.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.