Loading...

Air New Zealand

NZSE:AIR
Snowflake Description

Established dividend payer and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AIR
NZSE
NZ$3B
Market Cap
  1. Home
  2. NZ
  3. Transportation
Company description

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 last earnings update was 183 days ago. More info.


Add to Portfolio Compare Print
  • Air New Zealand has significant price volatility in the past 3 months.
AIR Share Price and Events
7 Day Returns
-2.2%
NZSE:AIR
-2.5%
Oceania Airlines
-0.9%
NZ Market
1 Year Returns
-11.7%
NZSE:AIR
-0.3%
Oceania Airlines
6.4%
NZ Market
AIR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Air New Zealand (AIR) -2.2% -19.5% -13.1% -11.7% -5.7% 50.1%
Oceania Airlines -2.5% -7.6% -3.1% -0.3% 2.6% 90.5%
NZ Market -0.9% 0.5% 4.2% 6.4% 26.1% 41.9%
1 Year Return vs Industry and Market
  • AIR underperformed the Airlines industry which returned -0.3% over the past year.
  • AIR underperformed the Market in New Zealand which returned 6.4% over the past year.
Price Volatility
AIR
Industry
5yr Volatility vs Market

Value

 Is Air New Zealand undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Air New Zealand to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our calculation method for this is changing soon.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Air New Zealand.

NZSE:AIR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.6%
Perpetual Growth Rate 10-Year NZ Government Bond Rate 2.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NZSE:AIR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year NZ Govt Bond Rate 2.4%
Equity Risk Premium S&P Global 7.6%
Airlines Unlevered Beta Simply Wall St/ S&P Global 0.73
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.727 (1 + (1- 28%) (91.85%))
1.208
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.21
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.37% + (1.208 * 7.63%)
11.59%

Discounted Cash Flow Calculation for NZSE:AIR using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Air New Zealand is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NZSE:AIR DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (NZD, Millions) -39.00 184.00 545.00 563.92 583.49
Source Analyst x2 Analyst x2 Analyst x1 Est @ 3.47% Est @ 3.47%
Present Value
Discounted (@ 11.59%)
-34.95 147.77 392.26 363.73 337.28
Present value of next 5 years cash flows NZ$1,206.08
NZSE:AIR DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= NZ$583.49 × (1 + 2.37%) ÷ (11.59% – 2.37%)
NZ$6,481.40
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= NZ$6,481.40 ÷ (1 + 11.59%)5
NZ$3,746.47
NZSE:AIR Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= NZ$1,206.08 + NZ$3,746.47
NZ$4,952.55
Equity Value per Share
(NZD)
= Total value / Shares Outstanding
= NZ$4,952.55 / 1,123.19
NZ$4.41
NZSE:AIR Discount to Share Price
Calculation Result
Value per share (NZD) From above. NZ$4.41
Current discount Discount to share price of NZ$2.65
= -1 x (NZ$2.65 - NZ$4.41) / NZ$4.41
39.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Air New Zealand is available for.
Intrinsic value
40%
Share price is NZ$2.65 vs Future cash flow value of NZ$4.41
Current Discount Checks
For Air New Zealand to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Air New Zealand's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Air New Zealand's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Air New Zealand's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Air New Zealand's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NZSE:AIR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-06-30) in NZD NZ$0.35
NZSE:AIR Share Price ** NZSE (2019-02-20) in NZD NZ$2.65
Global Airlines Industry PE Ratio Median Figure of 38 Publicly-Listed Airlines Companies 11.73x
New Zealand Market PE Ratio Median Figure of 90 Publicly-Listed Companies 17.28x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Air New Zealand.

NZSE:AIR PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NZSE:AIR Share Price ÷ EPS (both in NZD)

= 2.65 ÷ 0.35

7.63x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Air New Zealand is good value based on earnings compared to the Global Airlines industry average.
  • Air New Zealand is good value based on earnings compared to the New Zealand market.
Price based on expected Growth
Does Air New Zealand's expected growth come at a high price?
Raw Data
NZSE:AIR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 7.63x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
-1%per year
Global Airlines Industry PEG Ratio Median Figure of 33 Publicly-Listed Airlines Companies 0.93x
New Zealand Market PEG Ratio Median Figure of 64 Publicly-Listed Companies 1.1x

*Line of best fit is calculated by linear regression .

NZSE:AIR PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 7.63x ÷ -1%

-7.35x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Air New Zealand earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Air New Zealand's assets?
Raw Data
NZSE:AIR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-06-30) in NZD NZ$1.94
NZSE:AIR Share Price * NZSE (2019-02-20) in NZD NZ$2.65
Oceania Airlines Industry PB Ratio Median Figure of 5 Publicly-Listed Airlines Companies 1.67x
New Zealand Market PB Ratio Median Figure of 126 Publicly-Listed Companies 1.5x
NZSE:AIR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NZSE:AIR Share Price ÷ Book Value per Share (both in NZD)

= 2.65 ÷ 1.94

1.37x

* Primary Listing of Air New Zealand.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Air New Zealand is good value based on assets compared to the Oceania Airlines industry average.
X
Value checks
We assess Air New Zealand's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Airlines industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Airlines industry average (and greater than 0)? (1 check)
  5. Air New Zealand has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Air New Zealand expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Air New Zealand expected to grow at an attractive rate?
  • Air New Zealand's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.4%.
Growth vs Market Checks
  • Air New Zealand's earnings are expected to decrease over the next 1-3 years, this is below the New Zealand market average.
  • Air New Zealand's revenue growth is positive but not above the New Zealand market average.
Annual Growth Rates Comparison
Raw Data
NZSE:AIR Future Growth Rates Data Sources
Data Point Source Value (per year)
NZSE:AIR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts -1%
NZSE:AIR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 4%
Oceania Airlines Industry Earnings Growth Rate Market Cap Weighted Average 7.9%
Oceania Airlines Industry Revenue Growth Rate Market Cap Weighted Average 3%
New Zealand Market Earnings Growth Rate Market Cap Weighted Average 6.1%
New Zealand Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NZSE:AIR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in NZD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NZSE:AIR Future Estimates Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-06-30 6,191 1,055 371 5
2020-06-30 5,948 949 368 7
2019-06-30 5,716 954 292 7
NZSE:AIR Past Financials Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income *
2018-06-30 5,485 1,031 390
2018-03-31 5,370 1,019 374
2017-12-31 5,254 1,007 358
2017-09-30 5,182 956 370
2017-06-30 5,109 904 382
2017-03-31 5,113 907 382
2016-12-31 5,117 909 381
2016-09-30 5,174 992 422
2016-06-30 5,231 1,074 463
2016-03-31 5,226 1,169 498
2015-12-31 5,220 1,263 532
2015-09-30 5,073 1,182 430

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Air New Zealand's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Air New Zealand's revenue is expected to grow by 4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NZSE:AIR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Air New Zealand Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NZSE:AIR Future Estimates Data
Date (Data in NZD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-06-30 0.32 0.34 0.31 3.00
2020-06-30 0.30 0.34 0.25 4.00
2019-06-30 0.26 0.31 0.23 4.00
NZSE:AIR Past Financials Data
Date (Data in NZD Millions) EPS *
2018-06-30 0.35
2018-03-31 0.33
2017-12-31 0.32
2017-09-30 0.33
2017-06-30 0.34
2017-03-31 0.34
2016-12-31 0.34
2016-09-30 0.38
2016-06-30 0.41
2016-03-31 0.44
2015-12-31 0.47
2015-09-30 0.38

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Air New Zealand is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Air New Zealand's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Oceania market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Oceania market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Air New Zealand has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Air New Zealand performed over the past 5 years?

  • Air New Zealand's last earnings update was 183 days ago.
The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Air New Zealand's growth in the last year to its industry (Airlines).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Air New Zealand's year on year earnings growth rate has been positive over the past 5 years.
  • Air New Zealand's 1-year earnings growth is less than its 5-year average (2.1% vs 12.4%)
  • Air New Zealand's earnings growth has exceeded the Global Airlines industry average in the past year (2.1% vs -11.9%).
Earnings and Revenue History
Air New Zealand's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Air New Zealand Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NZSE:AIR Past Revenue, Cash Flow and Net Income Data
Date (Data in NZD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-06-30 5,485.00 390.00 357.00
2018-03-31 5,369.50 374.00 355.00
2017-12-31 5,254.00 358.00 353.00
2017-09-30 5,181.50 370.00 352.50
2017-06-30 5,109.00 382.00 352.00
2017-03-31 5,113.00 381.50 347.00
2016-12-31 5,117.00 381.00 342.00
2016-09-30 5,174.00 422.00 345.00
2016-06-30 5,231.00 463.00 348.00
2016-03-31 5,225.50 497.50 345.00
2015-12-31 5,220.00 532.00 342.00
2015-09-30 5,072.50 429.50 322.50
2015-06-30 4,925.00 327.00 303.00
2015-03-31 4,828.00 291.00 290.50
2014-12-31 4,731.00 255.00 278.00
2014-09-30 4,691.50 259.00 279.00
2014-06-30 4,652.00 263.00 280.00
2014-03-31 4,611.50 242.50 276.50
2013-12-31 4,571.00 222.00 273.00
2013-09-30 4,593.00 201.50 273.50
2013-06-30 4,615.00 181.00 274.00
2013-03-31 4,587.50 157.00 274.50
2012-12-31 4,560.00 133.00 275.00
2012-09-30 4,521.50 102.00 272.50
2012-06-30 4,483.00 71.00 270.00
2012-03-31 4,439.50 46.00 271.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Air New Zealand has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Air New Zealand used its assets less efficiently than the Global Airlines industry average last year based on Return on Assets.
  • Air New Zealand has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Air New Zealand's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Airlines industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Air New Zealand has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Air New Zealand's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Air New Zealand's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Air New Zealand's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Air New Zealand's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Air New Zealand's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Air New Zealand Company Filings, last reported 7 months ago.

NZSE:AIR Past Debt and Equity Data
Date (Data in NZD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-06-30 2,176.00 2,734.00 1,343.00
2018-03-31 2,176.00 2,734.00 1,343.00
2017-12-31 2,123.00 2,713.00 1,340.00
2017-09-30 2,123.00 2,713.00 1,340.00
2017-06-30 1,986.00 2,514.00 1,369.00
2017-03-31 1,986.00 2,514.00 1,369.00
2016-12-31 2,036.00 2,773.00 1,288.00
2016-09-30 2,036.00 2,773.00 1,288.00
2016-06-30 2,108.00 2,567.00 1,616.00
2016-03-31 2,108.00 2,567.00 1,616.00
2015-12-31 2,071.00 2,608.00 1,400.00
2015-09-30 2,071.00 2,608.00 1,400.00
2015-06-30 1,965.00 2,322.00 1,321.00
2015-03-31 1,965.00 2,322.00 1,321.00
2014-12-31 1,786.00 2,153.00 1,265.00
2014-09-30 1,786.00 2,153.00 1,265.00
2014-06-30 1,872.00 1,733.00 1,234.00
2014-03-31 1,872.00 1,733.00 1,234.00
2013-12-31 1,808.00 1,624.00 1,128.00
2013-09-30 1,808.00 1,624.00 1,128.00
2013-06-30 1,801.00 1,629.00 1,150.00
2013-03-31 1,801.00 1,629.00 1,150.00
2012-12-31 1,752.00 1,610.00 1,075.00
2012-09-30 1,752.00 1,610.00 1,075.00
2012-06-30 1,688.00 1,694.00 1,029.00
2012-03-31 1,688.00 1,694.00 1,029.00
  • Air New Zealand's level of debt (125.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (90.4% vs 125.6% today).
  • Debt is well covered by operating cash flow (37.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 26.8x coverage).
X
Financial health checks
We assess Air New Zealand's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Air New Zealand has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Air New Zealand's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
8.3%
Current annual income from Air New Zealand dividends. Estimated to be 8.68% next year.
If you bought NZ$2,000 of Air New Zealand shares you are expected to receive NZ$166 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Air New Zealand's pays a higher dividend yield than the bottom 25% of dividend payers in New Zealand (3.12%).
  • Air New Zealand's dividend is above the markets top 25% of dividend payers in New Zealand (5.84%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NZSE:AIR Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
Global Airlines Industry Average Dividend Yield Market Cap Weighted Average of 29 Stocks 2.7%
New Zealand Market Average Dividend Yield Market Cap Weighted Average of 77 Stocks 4.1%
New Zealand Minimum Threshold Dividend Yield 10th Percentile 1.9%
New Zealand Bottom 25% Dividend Yield 25th Percentile 3.1%
New Zealand Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NZSE:AIR Future Dividends Estimate Data
Date (Data in NZ$) Dividend per Share (annual) Avg. No. Analysts
2021-06-30 0.24 5.00
2020-06-30 0.23 6.00
2019-06-30 0.22 6.00
NZSE:AIR Past Annualized Dividends Data
Date (Data in NZ$) Dividend per share (annual) Avg. Yield (%)
2018-09-17 0.220 7.370
2018-02-22 0.220 6.734
2017-08-23 0.220 6.827
2017-02-23 0.200 7.078
2017-02-22 0.200 9.096
2016-08-25 0.200 9.825
2016-02-24 0.200 8.367
2015-08-26 0.190 6.902
2015-08-25 0.190 7.281
2014-08-27 0.100 4.061
2014-02-27 0.095 4.632
2013-08-29 0.080 5.045
2013-02-28 0.065 4.443
2012-08-30 0.055 4.445
2012-08-29 0.055 5.782
2012-02-24 0.040 4.514
2011-09-19 0.055 5.714
2011-03-21 0.070 6.277
2010-08-25 0.070 5.205
2010-02-25 0.065 5.391
2009-08-27 0.065 5.203
2009-02-25 0.060 6.081
2009-02-23 0.085 10.410

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Air New Zealand's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.4x coverage).
X
Income/ dividend checks
We assess Air New Zealand's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Air New Zealand afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Air New Zealand has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Air New Zealand's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Christopher Luxon
AGE 48
TENURE AS CEO 6.1 years
CEO Bio

Mr. Christopher Mark Luxon has been the Chief Executive Officer of Air New Zealand Limited since January 1, 2013. Mr. Luxon served as Group General Manager of International Airline at Air New Zealand Limited since May 30, 2011 until January 2013. He joined Air New Zealand from Unilever where he served as President and Chief Executive Officer of Unilever Canada since December 2008. Mr. Luxon has vast international experience having worked in New Zealand, Australia, Asia, United Kingdom, United States and Canada in a range of local, regional and global assignments dealing with both developing and developed markets. He has been recognised with several awards for his brand work. He served as a Non-Executive Director of Virgin Australia Holdings Limited since July 4, 2014 until March 30, 2016. Mr. Luxon completed an M.Comm at the University of Canterbury.

CEO Compensation
  • Insufficient data for Christopher to compare compensation growth.
  • Insufficient data for Christopher to establish whether their remuneration is reasonable compared to companies of similar size in New Zealand.
Management Team Tenure

Average tenure of the Air New Zealand management team in years:

3
Average Tenure
  • The tenure for the Air New Zealand management team is about average.
Management Team

Christopher Luxon

TITLE
Chief Executive Officer
AGE
48
TENURE
6.1 yrs

Jeff McDowall

TITLE
Chief Financial Officer
TENURE
1.1 yrs

Leila Peters

TITLE
Head of Investor Relations & Financial Planning

Karen Clayton

TITLE
General Counsel & Company Secretary
TENURE
2.2 yrs

Mike Tod

TITLE
Chief Marketing & Customer Officer
TENURE
6.1 yrs

Cam Wallace

TITLE
Chief Sales and Commercial Officer
AGE
46
TENURE
5.1 yrs

Jodie King

TITLE
Chief People Officer
TENURE
3 yrs

David Morgan

TITLE
Chief Operations Integrity & Standards Officer
TENURE
6.1 yrs

John Whittaker

TITLE
Chief of Air Operations & People Safety Officer
TENURE
2.3 yrs

Nick Judd

TITLE
Chief Strategy
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the Air New Zealand board of directors in years:

4.9
Average Tenure
60
Average Age
  • The tenure for the Air New Zealand board of directors is about average.
Board of Directors

Tony Carter

TITLE
Chairman
COMPENSATION
NZ$326K
AGE
60
TENURE
5.4 yrs

Jan Dawson

TITLE
Deputy Chairman
COMPENSATION
NZ$189K
AGE
64
TENURE
5.4 yrs

Rob Jager

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$178K
TENURE
5.8 yrs

Jonathan Mason

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$205K
AGE
60
TENURE
4.9 yrs

Linda Jenkinson

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$168K
TENURE
4.7 yrs

Dame Walsh

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$167K
TENURE
2.8 yrs

John Key

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$146K
AGE
56
TENURE
1.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (NZ$) Value (NZ$)
20. Nov 18 Sell John Whittaker Individual 12. Nov 18 15. Nov 18 -77,000 NZ$3.06 NZ$-234,613
09. Oct 18 Sell John Whittaker Individual 04. Oct 18 04. Oct 18 -57,138 NZ$3.02 NZ$-172,602
09. Oct 18 Sell Bruce Parton Individual 04. Oct 18 04. Oct 18 -27,384 NZ$3.02 NZ$-82,743
03. Oct 18 Sell Jeff McDowall Individual 02. Oct 18 03. Oct 18 -105,573 NZ$3.01 NZ$-318,291
13. Sep 18 Sell Bruce Parton Individual 11. Sep 18 11. Sep 18 -60,105 NZ$3.21 NZ$-192,907
10. May 18 Sell Christopher Luxon Individual 03. May 18 03. May 18 -90,000 NZ$3.27 NZ$-294,300
X
Management checks
We assess Air New Zealand's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Air New Zealand has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Need To Know: Air New Zealand Limited (NZSE:AIR) Insiders Have Been Selling Shares

We often see insiders buying up shares in companies that perform well over the long term. … So we'll take a look at whether insiders have been buying or selling shares in Air New Zealand Limited (NZSE:AIR). … We generally tread carefully if insiders have been selling on market, even if they sold slightly above the current price.

Simply Wall St -

Is Air New Zealand Limited’s (NZSE:AIR) Return On Capital Employed Any Good?

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Return On Capital Employed (ROCE): What is it? … How Do You Calculate Return On Capital Employed

Simply Wall St -

Did Air New Zealand Limited (NZSE:AIR) Use Debt To Deliver Its ROE Of 18%?

This article is for those who would like to learn about Return On Equity (ROE). … Our data shows Air New Zealand has a return on equity of 18% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Investors Should Know About Air New Zealand Limited's (NZSE:AIR) Financial Strength

Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like Air New Zealand Limited (NZSE:AIR), with a market cap of NZ$3.4b, are often out of the spotlight. … Today we will look at AIR’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Don’t forget that this is a general and concentrated examination of Air New Zealand’s financial health, so you should conduct further analysis.

Simply Wall St -

Air New Zealand Limited's (NZSE:AIR) Earnings Grew 2.1%, Did It Beat Long-Term Trend?

Assessing Air New Zealand Limited's (NZSE:AIR) performance as a company requires looking at more than just a years' earnings data. … Below, I will run you through a simple sense check to build perspective on how Air New Zealand is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its airlines industry peers. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 12%, indicating the rate at which AIR is growing has slowed down

Simply Wall St -

What Can We Expect From Air New Zealand Limited's (NZSE:AIR) Earnings In The Year Ahead?

In June 2018, Air New Zealand Limited (NZSE:AIR) released its earnings update. … with profits predicted to drop by -15% next year

Simply Wall St -

Is Air New Zealand Limited (NZSE:AIR) Potentially Underrated?

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … that has been a rockstar for income investors, currently trading at an attractive share price

Simply Wall St -

Why Air New Zealand Limited (NZSE:AIR) Is A Dividend Rockstar

Over the past 10 years Air New Zealand Limited (NZSE:AIR) has been paying dividends to shareholders. … Does Air New Zealand tick all the boxes of a great dividend stock? … 5 questions to ask before buying a dividend stock

Simply Wall St -

Air New Zealand Limited (NZSE:AIR): Poised For Long-Term Success?

Air New Zealand Limited's (NZSE:AIR) most recent earnings update in June 2018a … showed … company

Simply Wall St -

Should Investors Be Happy About Air New Zealand Limited’s (NZSE:AIR) Cash Levels?

If you are currently a shareholder in Air New Zealand Limited (NZSE:AIR), or considering investing in the stock, you need to examine how the business generates cash, and how it is reinvested. … What is left after investment, determines the value of the stock since this cash flow technically belongs to investors of the company. … Air New Zealand’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure.

Simply Wall St -

Company Info

Map
Description

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. As of December 31, 2017, it had a fleet of 105 aircrafts. 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 headquartered in Auckland, New Zealand.

Details
Name: Air New Zealand Limited
AIR
Exchange: NZSE
Founded: 1940
NZ$2,976,455,302
1,123,190,680
Website: http://www.airnewzealand.co.nz
Address: Air New Zealand Limited
Air New Zealand House,
185 Fanshawe Street,
Auckland,
1010,
New Zealand
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NZSE AIR Ordinary Shares New Zealand Stock Exchange NZ NZD 02. Jan 1992
OTCPK ANZF.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB BZU Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
ASX AIZ Ordinary Shares Australian Securities Exchange AU AUD 02. Jan 1992
CHIA AIZ Ordinary Shares Chi-X Australia AU AUD 02. Jan 1992
OTCPK ANZL.Y SPONSORED ADR Pink Sheets LLC US USD 29. Oct 2008
Number of employees
Current staff
Staff numbers
11,074
Air New Zealand employees.
Industry
Airlines
Transportation
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/21 10:33
End of day share price update: 2019/02/20 00:00
Last estimates confirmation: 2019/02/20
Last earnings filing: 2018/08/22
Last earnings reported: 2018/06/30
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.