New Zealand’s national carrier has again posted soft results driven by multiple factors.
Global engine maintenance delays, slower-than-expected recovery in domestic demand, increased aviation system costs, and slow recovery of domestic demand have all been highlighted by Air New Zealand as reasons the carrier has posted another soft financial result.
The New Zealand flag carrier today announced a loss before tax of NZD$59 million for the first half of the 2026 financial year, compared with earnings before tax of NZD$144 million in the prior corresponding period. The net loss after taxation was NZD$40 million.
Air New Zealand said the result was outside the guidance range of a loss of NZD$30 to NZD$55 million provided to the market in Oct 2025, primarily reflecting an NZD$13 million headwind from higher-than-assumed fuel prices in the second quarter, while also highlighting a weaker-than-expected NZD.
The carrier received NZD$55 million in compensation from engine manufacturers for the first half but estimated an additional NZD$90 million of earnings could have been included within the result had the fleet operated as intended.
CEO Nikhil Ravishankar said, “with the support of the board we are undertaking a comprehensive review of all aspects of the business, with the objective of returning the airline to sustained profitability through enhanced operational performance, growth and further cost transformation initiatives”.
More details in today’s issue of Travel Daily.