The Air New Zealand Ltd (ASX: AIZ) share price climbed 2% higher on the ASX yesterday, despite the company announcing the resignation of long-time CEO Christopher Luxon.
What was in the Air New Zealand announcement?
Air New Zealand announced Mr Luxon resigned yesterday evening and will step down from day-to-day leadership of the airline on 25 September 2019.
Chairman Tony Carter said Mr Luxon has made an "outstanding contribution" to the airline, which has experienced a period of enhanced profitability, strong dividends to shareholders, record customer satisfaction scores, outstanding brand health and the best corporate reputation in Australia and New Zealand during his tenure.
Mr Luxon has been at the helm of the airline for 7 years and guided the company through significant expansion, during which time the company's share price has climbed nearly 300% to $2.58 per share.
What else has been happening for Air New Zealand?
The Air New Zealand share price has fallen 11.6% so far this year as global oil prices have climbed higher, pushing operating expenses up and squeezing profitability for the airline.
The company reported a 34.5% decline in net income to $76 million for the year ended 31 December 2018, while its net profit margin also eroded 38.9% to just 5.2% for the year.
Throughout Mr Luxon's tenure, Air New Zealand managed to stay afloat and maintain its profitability in a time where most airlines where struggling to turn a profit at all.
Air New Zealand remains one of the top dividend stocks on the ASX with an 8.6% per annum dividend yield (however, this is unfranked given its international domicile).
It's been a similarly difficult year for investors in fellow airline Qantas Airways Ltd (ASX: QAN) who have seen the company's share price fall 4.2% to $5.52 per share on a price-to-earnings (P/E) multiple of 9.9x earnings and at the lower end of its 52-week price range.
