The airline suspends guidance due to oil volatility.
Air New Zealand has suspended its guidance for the 2026 fiscal year due to volatility in the jet fuel market following the recent escalation of conflict in the Middle East.
Jet fuel prices, which were around US$85-$90 a barrel prior to the conflict (approximately A$125), have increased sharply to between US$150-$200 a barrel in recent days (approximately A$250).
Although Air New Zealand is 83% hedged against Brent crude oil for the second half of the year, these conditions make its 2026 guidance no longer appropriate, the airline said.
Results for the second half were initially expected to be in line with the NZ$59 million (A$49 million) loss Air NZ posted in H1.
Air New Zealand added that it is adjusting its fares to offset downward pressures, with potential further action to be taken on prices and schedule adjustments if required.
The airline has experienced a long line of hits to its financial performance since the COVID-19 pandemic, among which have included engine issues.
More details in today’s issue of Travel Daily.