- Air New Zealand trimmed its annual earnings estimates on Monday, citing economic headwinds and a cost-of-living crisis leading to softer revenue in domestic and North American markets, sending the carrier's shares to a near two-year low.
Shares of Air NZ slipped as much 3.5% to NZ$0.550, hitting their lowest level since July 1, 2022. The shares were poised for their worst day since March 7, if losses hold.New Zealand's flagship carrier now expects earnings before taxation between NZ$190 million and NZ$230 million for 2024, down from previous estimate of NZ$200 million to NZ$240 million.
"North American performance continues to be impacted by very competitive pricing pressures, as the market adjusts to the significant capacity added into the New Zealand market by U.S. carriers," the carrier said in a statement. Earlier in February, the company forecast lower earnings for 2024 and flagged an impact from high engine maintenance costs."They have a very small domestic market and have always run on very thin margins. The geographic challenge for Air NZ in international competition will never change," said Brad Smoling, managing director at Smoling Stockbroking.Air New Zealand said its earnings will also take a hit of NZ$95 million in COVID-related credit breakage for this financial year.
Canada Canada Latest News, Canada Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »