(Reuters) – Air New Zealand reported a 17.8% drop in its half-yearly profit on Thursday as it continues to face aircraft availability issues caused by global maintenance delays.
The company, however, announced a share buyback of NZ$100 million ($57.05 million) and declared an interim ordinary dividend of 1.25 New Zealand cents per share.
New Zealand’s flagship carrier reported a statutory profit before tax of NZ$106 million for the six months ended December 31, compared with NZ$129 million a year ago.
That, nonetheless, beat a Visible Alpha consensus of NZ$101.6 million.
This is not the first time that engine issues have substantially affected the carrier’s operations, with maintenance issues having impacted the company’s bottom line in fiscal 2024.
Late last year, an Air New Zealand flight had to divert from its path to land in Auckland after facing engine problems. Earlier this month, the carrier had to slim its offerings, announcing that its flights to South Korea’s capital, Seoul, will be stopped by the end of March, flagging an engine shortage.
($1 = 1.7528 New Zealand dollars)
(Reporting by Roshan Thomas and Nichiket Sunil in Bengaluru; Editing by Alan Barona)
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