Tēnā koutou.
Today we deliver our annual result for the first full year of flying
since the COVID 19 pandemic.
And as we reflect on the year that’s been, we’re conscious that a strong
financial result for the airline comes at an increasingly uncertain time
for many of our customers and the wider economy.
Our result was delivered in the context
of an extraordinary operating environment which provided unique tailwinds
for the business.
Following three years
of significant losses this year marked return to profitability.
We've hired 3,000 people, returned to 30 international destinations,
and improved our on board service while delivering on key initiatives
that differentiate in New Zealand from global competitors,
all while facing a series of operational and climate related challenges
that impacted our performance and disrupted our customers.
We are proud of the Air New Zealand whānau who've produced a well-rounded result
that's seen us deliver on key areas of our strategy,
improve our customer experience, support our people and the communities we serve,
and announce innovative new products for the year ahead.
While this result does not reflect the new normal, we are pleased
to have achieved so much and to deliver a special dividend to our shareholders,
while also helping fund large aircraft
and infrastructure investments.
Over the course of the year, the board has also reviewed the airline's
capital management settings following the recovery with a particular
focus on appropriate liquidity and leverage targets
that would enable the company to maintain an investment grade
credit rating as well as consideration of shareholder distribution parameters.
The revised capital management framework is effective from the 2024 financial year.
When Aotearoa New Zealand's borders reopened in July 2022,
Kiwis desire to travel exceeded all expectations.
Even though we made an early start retraining pilots,
undertook our biggest hiring programme ever and brought aircraft back
from desert storage as quickly and safely as possible,
supply was constrained, particularly in the first half of the year.
At our interim results,
we acknowledge the challenges with contact centre wait times,
planes leaving and departing on time,
mishandled baggage and providing refunds.
We've also not fully resolved these issues, but performance is much
improved with contact centre average wait times decreasing 75% since December.
A digitized baggage system, including an enhanced app
with baggage tracking, which is getting rolled out in the coming months,
and a step change in on time performance of flights.
Now refunds are being processed more quickly, but still lag what customers deserve.
I can tell you this remains a top priority for us.
Our Kia Mau strategy, which is focused on ensuring resilience and delivering
great employee experiences, continues to guide us.
Domestically, we're almost at pre-COVID capacity,
and on our international network
we are adding more capacity with new Airbus A321s
and 787 Dreamliners late next year.
And we gained 368,000 Airpoints members
over the past financial year with 4.2 million people
now part of our loyalty programme, an all time high.
Sustainability remains a challenge.
We're reminded by the increasing frequency of climate events here and overseas
how critical our net zero target is.
I'd like to thank our customers and shareholders,
for their patient support as Air New Zealand has recovered from the pandemic.
Our staff work hard every day
to deliver a great Air New Zealand for you.
It's been an absolute privilege to welcome you back on board
and we're excited about the changes ahead to make our service even better.