Air NZ warns significant items will hit bottom line
Air New Zealand is maintaining its full year earnings guidance, but warns there will be a number of significant items that will affect the bottom line.
The national carrier said it was not changing its underlying profit forecast of between $350 million to $450m, which assumed an average jet fuel price of $US75 per barrel.
Air New Zealand's said its underlying performance isn't affected by the one-off items which could cost as much as $80 million.
They include about $10 million to comply with new accounting standards, and $46 million associated with hedges minimising the risk of foreign exchange volatility.
The airline is scrapping its Los Angeles to London service, which will give it a $21m gain from the partial sale of airport slots at London's Heathrow Airport.
However, the move has also meant some restructuring, including scaling back the number of cabin crew posted overseas - that will cost between $20m and $25m - about half ($13m) of which will be included in next month's interim result.
Air New Zealand's share price is down in early trading by more than 4 percent.
This article was originally published on RNZ and re-published with permission.
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