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essay about air New Zealand's 2016 financial statement was released, showing a profit of $463 million
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##Executive Summary
Air New Zealand's 2016 financial statement was released, showing a profit of $463 million. The statement also showed that the company's total assets were $7,251 million and its total equity was $2,108 million.
#Air New Zealand Company’s Financial Statement for 2016 Report
Air New Zealand is one of the largest airlines in New Zealand that is headquartered in Auckland. Air New Zealand was founded in 1940. Currently, the company’s CEO is Christopher Luxon (Air New Zealand, 2016). The size of the company’s fleet is 103 airplanes, including Boeing 777-300ER, Boeing 777-200ER, and Boeing 767-300ER, which serve to carry passengers to more than 50 airports in New Zealand and globally. The company’s staff consists of 10,527 employees (Air New Zealand, 2016; Luxon & McDonald, 2017).
In 2016, Air New Zealand carried 15,161 million passengers, and the passenger revenue was NZ$4,481 million (Air New Zealand, 2016). The total operating revenue for the Air New Zealand group was NZ$5,231 million with an operating income of NZ$1,542 million. In 2015, the operating revenue was NZ$4,925 million (Air New Zealand, 2016). While comparing the data for 2015 and 2016 years, it is possible to note that the revenue growth was caused by the demand increase by 17% (Luxon & McDonald, 2017).
The profit reported for 2016 was NZ$463 million with a Gross Margin of 83.8% and Return on Equity of 22.74%. Total assets were reported to be NZ$7,251 million, and the total equity was reported to be NZ$2,108 million (Air New Zealand, 2016; Luxon & McDonald, 2017).
The latest data regarding the financial results for 2017 indicate that the current earnings before taxation are NZ$349 million, and the net profit after taxation is NZ$256 million (Luxon & McDonald, 2017). It was noted that, for the first part of 2017, the passenger revenue decreased by 4%. The analysts also report challenges in gaining revenues which are associated with the current industry capacity, but positive changes in trends are forecasted for the second part of 2017 for both domestic and international flights (Luxon & McDonald, 2017).