Air New Zealand Limited provides passenger and cargo transportation services on scheduled airlines primarily in New Zealand, Australia, the Pacific Islands, the United Kingdom, Europe, Asia, and the United States.
Good value with moderate growth potential.
Share Price & News
How has Air New Zealand's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: AIR's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: AIR underperformed the NZ Airlines industry which returned -30% over the past year.
Return vs Market: AIR underperformed the NZ Market which returned 5.1% over the past year.
Price Volatility Vs. Market
How volatile is Air New Zealand's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 months ago | Simply Wall StA Sliding Share Price Has Us Looking At Air New Zealand Limited's (NZSE:AIR) P/E Ratio
3 months ago | Simply Wall StIs Air New Zealand Limited (NZSE:AIR) A Strong Dividend Stock?
3 months ago | Simply Wall StWhy We’re Not Impressed By Air New Zealand Limited’s (NZSE:AIR) 6.2% ROCE
Is Air New Zealand undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: AIR (NZ$1.64) is trading above our estimate of fair value (NZ$1.17)
Significantly Below Fair Value: AIR is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: AIR is good value based on its PE Ratio (8.4x) compared to the Airlines industry average (9.7x).
PE vs Market: AIR is good value based on its PE Ratio (8.4x) compared to the NZ market (18.8x).
Price to Earnings Growth Ratio
PEG Ratio: AIR is good value based on its PEG Ratio (0.1x)
Price to Book Ratio
PB vs Industry: AIR is good value based on its PB Ratio (0.9x) compared to the XX Airlines industry average (1x).
How is Air New Zealand forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AIR's forecast earnings growth (88.8% per year) is above the savings rate (2.6%).
Earnings vs Market: AIR's earnings (88.8% per year) are forecast to grow faster than the NZ market (4.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: AIR's revenue is expected to decline over the next 3 years (-0.7% per year).
High Growth Revenue: AIR's revenue is forecast to decline over the next 3 years (-0.7% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AIR's Return on Equity is forecast to be low in 3 years time (1.9%).
How has Air New Zealand performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AIR has high quality earnings.
Growing Profit Margin: AIR's current net profit margins (3.8%) are lower than last year (5.4%).
Past Earnings Growth Analysis
Earnings Trend: AIR's earnings have declined by -6.9% per year over the past 5 years.
Accelerating Growth: AIR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: AIR had negative earnings growth (-28.2%) over the past year, making it difficult to compare to the Airlines industry average (-17%).
Return on Equity
High ROE: AIR's Return on Equity (11%) is considered low.
How is Air New Zealand's financial position?
Financial Position Analysis
Short Term Liabilities: AIR's short term assets (NZ$1.8B) do not cover its short term liabilities (NZ$2.9B).
Long Term Liabilities: AIR's short term assets (NZ$1.8B) do not cover its long term liabilities (NZ$3.9B).
Debt to Equity History and Analysis
Debt Level: AIR's debt to equity ratio (73.1%) is considered high.
Reducing Debt: AIR's debt to equity ratio has increased from 32.9% to 73.1% over the past 5 years.
Debt Coverage: AIR's debt is well covered by operating cash flow (70.9%).
Interest Coverage: AIR's interest payments on its debt are well covered by EBIT (7.5x coverage).
What is Air New Zealand's current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate AIR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate AIR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if AIR's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if AIR's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: AIR is not paying a notable dividend for the NZ market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of AIR's dividend in 3 years as they are not forecast to pay a notable one for the NZ market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Greg Foran (58yo)
Mr. Gregory S. Foran, also known as Greg, has been the Chief Executive Officer at Air New Zealand Limited since February 3, 2020. Mr. Foran served as an Executive Vice President at Walmart Inc since August ...
|Chief Executive Officer||0.33yr||no data||no data|
|Chief Financial Officer||0.33yr||no data||0.021% NZ$396.1k|
|General Manager of Corporate Finance||no data||no data||no data|
|Manager of Investor Relations||no data||no data||no data|
|General Counsel & Company Secretary||1.17yrs||no data||no data|
|Chief People Officer||0.17yr||no data||no data|
|Chief Operations Integrity & Standards Officer||7.42yrs||no data||0.026% NZ$478.2k|
|Chief Revenue Officer||no data||no data||0.012% NZ$214.1k|
|Chief of Air Operations & People Safety Officer||3.67yrs||no data||0.021% NZ$385.0k|
|Chief Ground Operations Officer||1.92yrs||no data||0.0079% NZ$145.4k|
Experienced Management: AIR's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.
|Independent Non-Executive Director||6yrs||NZ$168.25k||0.0019% NZ$36.0k|
|Independent Non-Executive Director||0.17yr||no data||0.0044% NZ$82.0k|
|Independent Non-Executive Director||0.17yr||no data||no data|
|Independent Non-Executive Director||6.25yrs||NZ$205.23k||no data|
|Independent Non-Executive Director||7.17yrs||NZ$178.00k||0.0022% NZ$40.2k|
|Deputy Chairman||6.75yrs||NZ$189.41k||0.0018% NZ$32.9k|
|Independent Chairman||0.75yr||NZ$166.69k||0.0089% NZ$164.1k|
|Independent Non-Executive Director||0.67yr||no data||no data|
Experienced Board: AIR's board of directors are considered experienced (3.4 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: AIR insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Air New Zealand Limited's company bio, employee growth, exchange listings and data sources
- Name: Air New Zealand Limited
- Ticker: AIR
- Exchange: NZSE
- Founded: 1940
- Industry: Airlines
- Sector: Transportation
- Market Cap: NZ$1.846b
- Shares outstanding: 1.13b
- Website: https://www.airnewzealand.co.nz
Number of Employees
- Air New Zealand Limited
- Air New Zealand House
- 185 Fanshawe Street
- New Zealand
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|AIR||NZSE (New Zealand Stock Exchange)||Yes||Ordinary Shares||NZ||NZD||Jan 1992|
|AIZ||ASX (Australian Securities Exchange)||Yes||Ordinary Shares||AU||AUD||Jan 1992|
|ANZF.F||OTCPK (Pink Sheets LLC)||Yes||Ordinary Shares||US||USD||Jan 1992|
|AIZ||CHIA (Chi-X Australia)||Yes||Ordinary Shares||AU||AUD||Jan 1992|
|AIZ||CHIA (Chi-X Australia)||Yes||Ordinary Shares||AU||AUD||Jan 1992|
|BZU||DB (Deutsche Boerse AG)||Yes||Ordinary Shares||DE||EUR||Jan 1992|
|ANZL.Y||OTCPK (Pink Sheets LLC)||SPONSORED ADR||US||USD||Oct 2008|
Air New Zealand Limited provides passenger and cargo transportation services on scheduled airlines primarily in New Zealand, Australia, the Pacific Islands, the United Kingdom, Europe, Asia, and the United States. The company also offers ground handling services; engineering and maintenance services, including aircraft and component maintenance, repair, and overhaul services; and aircraft leasing and financing services. It operates a fleet of 113 aircraft. The company was formerly known as Tasman Empire Airways Limited and changed its name to Air New Zealand Limited in April 1965. Air New Zealand Limited was founded in 1940 and is based in Auckland, New Zealand.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/06/06 10:37|
|End of Day Share Price||2020/06/05 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.