The airline reported a profit of $126 million for the year to June, compared with $146 million a year earlier.
It said it had to cope with fewer people flying, at times more than 10 planes grounded for engine maintenance, and rising costs for fuel and regulatory charges.
The airline’s chairperson, Dame Therese Walsh, said the result had shown its resilience in the face of operational and economic changes.
Outgoing chief executive Greg Foran said it had had up to six narrowbody and five widebody aircraft out of service at times mainly for engine issues and that had considerably affected the result.
“While the airline received $129 million in compensation from engine manufacturers, it estimates earnings before taxation of $189 million could have been approximately $165 million higher had the fleet operated as intended,” he said.
“We acted early and decisively, securing additional engines and aircraft, and optimising our schedule to keep customers moving. While this came at a significant cost, it was the right decision to deliver for our customers and maintain network stability.”
Foran warned the coming year would likely be every bit as tough as the past one, with a forecast of underlying pre-tax earnings matching or being less than the $34 million recorded in the second half of the financial year just ended.
The airline noted its fuel bill fell 12% because of lower world prices and fewer flights, but that had been offset by a rise in equipment, labour and landing charges which were rising faster than inflation and were expected to keep doing so.
Its cost-cutting programme delivered about $100 million in savings.
“The airline is well-positioned for recovery when the engine challenges and economic conditions start to alleviate, but these issues continue to have a significant impact on current financial performance,” Foran said.
Key numbers
(For the 12 months ended June compared with a year ago)
• Net profit $126m vs $146m
• Underlying profit $189m vs $222m
• Revenue $6.8b vs $6.75b
• Final dividend 1.25 cents per share
