{"id":3526,"date":"2019-01-29T15:57:12","date_gmt":"2019-01-29T21:57:12","guid":{"rendered":"http:\/\/planesintheair.com\/?p=3526"},"modified":"2019-01-29T15:57:18","modified_gmt":"2019-01-29T21:57:18","slug":"rolls-royce-engine-issues-to-hit-air-new-zealand-earnings","status":"publish","type":"post","link":"https:\/\/planesintheair.com\/?p=3526","title":{"rendered":"Rolls-Royce Engine Issues To Hit Air New Zealand Earnings"},"content":{"rendered":"\n<p>(Reuters) &#8211; Air New Zealand expects much weaker earnings in its 2019 financial year, it said on Wednesday, citing higher costs after problems with some Rolls-Royce engines.<\/p>\n\n\n\n<p>New Zealand&#8217;s flag carrier said it expects pretax earnings of between NZ$340 million and NZ$400 million (\u00a3178 million to \u00a3209 million) for the year to June 30, against initial guidance of NZ$425 million to NZ$525 million.<\/p>\n\n\n\n<p>Air New Zealand is one of several Boeing 787 operators affected by maintenance issues on Rolls-Royce&#8217;s Trent 1000 engines. Problems with a deteriorating compressor in the engines had forced a number of airlines to ground flights.<\/p>\n\n\n\n<p>Earnings will take a hit of about NZ$30 million to NZ$40 million from the resulting schedule changes, Air New Zealand said.<\/p>\n\n\n\n<p>The carrier also said revenue growth has slowed, though lower jet fuel costs offer some relief.<\/p>\n\n\n\n<p>&#8220;We are concerned with our latest outlook, which reflects the softer revenue growth we are seeing in the second half,&#8221; said Chief Executive Christopher Luxon, adding that the company has begun a review of its network, fleet and cost base to ensure the business is on a strong footing going forward.<\/p>\n\n\n\n<p>The company said it will elaborate on annual guidance when it reports half-year results on Feb. 28. It expects to declare an interim dividend of 11 cents per share.<\/p>\n\n\n\n<p>Separately, Air New Zealand said it carried 4.5 percent more passengers in December 2018 than it did a year earlier.<\/p>\n\n\n\n<p>(Reporting by Ambar Warrick in Bengaluru; Editing by David Goodman)<\/p>\n\n\n\n<figure class=\"wp-block-image is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/planesintheair.com\/wp-content\/uploads\/2019\/01\/ANZ787.png\" alt=\"\" class=\"wp-image-3529\" width=\"626\" height=\"212\" srcset=\"https:\/\/planesintheair.com\/wp-content\/uploads\/2019\/01\/ANZ787.png 818w, https:\/\/planesintheair.com\/wp-content\/uploads\/2019\/01\/ANZ787-300x102.png 300w, https:\/\/planesintheair.com\/wp-content\/uploads\/2019\/01\/ANZ787-768x260.png 768w\" sizes=\"auto, (max-width: 626px) 100vw, 626px\" \/><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Air New Zealand expects much weaker earnings in its 2019 financial year, it said on Wednesday, citing higher costs after problems with some Rolls-Royce engines. New Zealand&#8217;s flag carrier said it expects pretax earnings of between NZ$340 million and NZ$400 million<\/p>\n","protected":false},"author":1,"featured_media":3529,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[797,89,799,2203,1397,868,1103],"tags":[591,42,539,420,160,41,1925,1924,961,335,2152,1757,3242,589,2510,718,412,2845,3241,1288,2504,2505,1018,3240],"class_list":["post-3526","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-airline-news","category-aviation-news","category-boeing-news","category-finance-news","category-stock-news","category-transportation-news","category-travel-news","tag-591","tag-42","tag-air","tag-airline","tag-aviation","tag-boeing","tag-carrier","tag-cost","tag-earnings","tag-engine","tag-flag","tag-fuel","tag-issues","tag-jet","tag-maintenance","tag-new","tag-news","tag-operators","tag-problems","tag-reuters","tag-rolls","tag-royce","tag-trent","tag-zealand"],"_links":{"self":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts\/3526","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3526"}],"version-history":[{"count":3,"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts\/3526\/revisions"}],"predecessor-version":[{"id":3530,"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts\/3526\/revisions\/3530"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/media\/3529"}],"wp:attachment":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3526"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3526"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3526"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}