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Air NZ lifts full-year guidance

NZN 1/06/2017 Rebecca Howard

Air New Zealand lifted its full-year guidance at an investor day presentation as it benefits from lower jet fuel prices and improving revenue.

Based on the current market environment and jet fuel prices the company said its 2017 earnings before taxation are likely to exceed $525 million.

In February it said its 2017 earnings before taxation would be in a range of $475m to $525m.

Chief executive Christopher Luxon pointed to a significant fuel benefit and increase revenues as the main reason behind the higher guidance.

Earnings before taxation were $663m in the prior period, as it benefited from a massive tourism boom and low oil prices.

The company was upbeat about its domestic business and said it is confident it can continue to grow.

In the long-haul business, it said as of July it will operate three services a week into Tokyo's Haneda Airport and will continue to operate daily services to Tokyo's Narita Airport. It will look to build scale into Houston and to increase connection opportunities via Auckland.

Air New Zealand shares last traded up 3 per cent at $2.955 and have gained 11.8 per cent so far this year.

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