Airways reports record operating profit, strong operational performance

Airways New Zealand has reported a strong safety, operational and financial performance in the year ending 30 June, 2016. The state-owned enterprise (SOE) achieved a Group Net Operating Profit after Tax (NOPAT) of NZD$23.2m, well ahead of a budgeted NZD$16.5m and 54% up on the prior year. Airways’ positive financial result was supported by an 8% increase in flight volumes from the prior year, in addition to strong cost management. In May, Airways announced a 4.7% price decrease for airlines over the next three year pricing period with general aviation prices maintained in line with inflation.  The SOE will also pay a NZD$9m dividend to its shareholder, the New Zealand Government, an increase from NZD$4m in the previous year.  Airways’ commercial businesses made strong gains, increasing NOPAT to NZD$3.5m from NZD$2.2m in FY15.