Frequently asked questions about Investing in Air New Zealand (2024)

FAQs

Is Air New Zealand a good company to invest in? ›

Is Air New Zealand Limited stock A Buy? Several short-term signals are positive, despite the stock being in a falling trend, we conclude that the current level may hold a buying opportunity as there is a fair chance for stock to perform well in the short-term.

The average price target for Air New Zealand Limited is $0.49. This is based on 2 Wall Streets Analysts 12-month price targets, issued in the past 3 months. The highest analyst price target is $0.49 ,the lowest forecast is $0.49.

One of this is that the company has been impacted by inflation, especially jet fuel prices. Demand, particularly amongst corporate travellers and on international routes remains subdued. Indeed, raw passenger numbers internationally are down 37% from pre-COVID levels and revenue passenger kilometres is down 35%.

As a Business Premier™ customer, you'll enjoy exclusive services such as premium check-in, courtesy lounge entry and priority baggage. On board you'll also receive personalized inflight service, an amenity kit with deluxe toiletries, and complimentary bottled water. We're here to ensure an exceptional journey.

Air New Zealand Limited (AIZ) last dividend payment was $0.02 per share and was paid on 21 Mar 2024. This last AIZ dividend included 0% franking. What is the franking level for Air New Zealand Limited (AIZ)? Air New Zealand Limited (AIZ) has a franking level of 0%.

Air New Zealand has retained its place at the top of the Kantar Corporate Reputation Index for the ninth consecutive year but Mitre 10 and PAK'nSAVE are hot on the national carrier's heels.

Air New Zealand boasts net cash, so it's fair to say it does not have a heavy debt load, even if it does have very significant liabilities, in total. Although Air New Zealand made a loss at the EBIT level, last year, it was also good to see that it generated NZ$587m in EBIT over the last twelve months.

The intrinsic value of one AIZ stock under the Base Case scenario is 1.018 AUD. Compared to the current market price of 0.495 AUD, Air New Zealand Ltd is Undervalued by 51%.

'Survive, Revive, Thrive': Air New Zealand's 800-day runway to healthy profits. Air New Zealand will be nimbler, fly fewer passengers and routes, and may cut more jobs as it targets a return to "healthy profits" by 2022, its chief executive said as he navigates the airline through the coronavirus crisis.

Will AIR.NZ ever recover? ›

Air NZ chief executive Greg Foran said fares increased on average 30-35% since Covid. Air New Zealand has returned to profitability in its annual results, reporting a $412m net profit after nearly three years of pandemic losses.

Air New Zealand has reported earnings of $185 million before tax for the first half of the 2024 financial year. Air New Zealand has reported a first-half profit of $129 million after tax, down 39% on the same period last year.

As with any business, Air New Zealand has its share of weaknesses that can impact its overall performance and competitive position. In this section, we will explore three key weaknesses faced by Air New Zealand: increased competition from low-cost carriers, volatile fuel prices, and over-reliance on the China market.

Air New Zealand mainly adopted the differentiation strategy as well as Cost focus strategy to pursue competitive advantages in marketplace. According to Porter (1985), choosing the appropriate generic strategy is one significant part of one business' success.

Our simplified and modern fleet has an average seat weighted age of 7.9 years, making it one of the youngest fleets in the world. The fleet consists of modern fuel-efficient aircraft, across fewer aircraft types, which provides the airline with a competitive cost structure and greater operational efficiencies.

New Zealand's thriving and stable economy and political system, creativity and innovation, ease of doing business and unmatched quality of life make it an attractive place to invest.

AIZ has an average earnings surprise of 42.5%. With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding AIZ to their portfolios.