Call me stupid, but I was unable to find that number anywhere in the accounts. The report is 100 pages long, but the only really interesting number was nowhere to be found.
Is this standard practice for the airline industry? I looked up the Qantas 2022 Annual Report (below) and found that very number in two seconds, on page 19. The table is headed up "Segment Performance" and Qantas clearly gives the contribution to overall EBIT (Earnings before Interest and Tax) of its Domestic versus International services.
The Air NZ accounts only have strange references to unintelligible items like "domestic revenue passenger kilometers". But all we want to know is the contribution to that half billion $ headline profit (which appeared throughout the news, together with a PR campaign by the airline) that has come from taking advantage of its domestic monopoly powers.
Why is the most basic accounting number - one of tremendous economic significance to assessing the airlines performance - not to be found anywhere in the annual report?
Sources
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/AIR/416946/401195.pdf
https://investor.qantas.com/FormBuilder/_Resource/_module/doLLG5ufYkCyEPjF1tpgyw/file/annual-reports/2022-Annual-Report.pdf
The Air NZ accounts only have strange references to unintelligible items like "domestic revenue passenger kilometers". But all we want to know is the contribution to that half billion $ headline profit (which appeared throughout the news, together with a PR campaign by the airline) that has come from taking advantage of its domestic monopoly powers.
Why is the most basic accounting number - one of tremendous economic significance to assessing the airlines performance - not to be found anywhere in the annual report?
Sources
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/AIR/416946/401195.pdf
https://investor.qantas.com/FormBuilder/_Resource/_module/doLLG5ufYkCyEPjF1tpgyw/file/annual-reports/2022-Annual-Report.pdf
Professor Robert MacCulloch holds the Matthew S. Abel Chair of Macroeconomics at Auckland University. He has previously worked at the Reserve Bank, Oxford University, and the London School of Economics. He runs the blog Down to Earth Kiwi from where this article was sourced.
2 comments:
Fantastic - they'll have even more money now to waste on woke, flying waka safety videos.
Happily fly anyone else that competes on price to avoid that.
i would think by now, air travel would be seen as a commodity. there's no great value in what any airline provides - whether is NZ-based or NZ-owned or NZ-govt owned or whatever. saying that we 'buy local' is simply a virtue-signal that you are rich enough not to care - similar to buying a designer bag!
people should simply buy tickets like they book a cab - get the cheapest (ola/uber/didi) and go home. who cares if it was the most 'enjoyable' ride of your life or not!
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