Air New Zealand warns of weaker earnings due to engine troubles

Company News

by Anna Napoli

Air New Zealand  (ASX:AIZ) has flagged a fall in revenue growth and profit for the 2019 financial year.

The airline says higher costs after problems with some Rolls-Royce engines are to blame for the profit downgrade.

The company says it expects pretax earnings of between NZ$340 million and NZ$400 million for the year to June 30, down from an initial guidance range of NZ$425 million to NZ$525 million.

CEO Christopher Luxon says management has commenced a review of its network to ensure the business is on a strong footing going forward.

Shares in Air New Zealand (ASX:AIZ) closed 0.96 per cent higher at $3.15 yesterday.

Anna Napoli

Finance News Network
Anna joined FNN February 2018 and also works with Channel 7 as a freelance producer. Anna has also worked as a lawyer and lecturer. She has also presented news updates for interstate news with Southern Cross Austereo.