Air New Zealand now anticipates a pre-tax loss of between $NZ30 million and $NZ55 million for the first half of the 2026 financial year. The revised guidance reflects weaker-than-expected revenue and increasing operational costs. The airline had previously indicated that first-half earnings would be similar to or slightly below the $NZ34 million profit reported in the second half of FY2025. Air New Zealand is the flag carrier airline of New Zealand. It provides passenger and cargo air transportation services to, from, and within New Zealand.
A soft domestic economy and slower demand for US-bound travel have negatively impacted bookings. The airline reported that a previously anticipated revenue increase of 2 to 3 per cent across those key markets has not occurred, resulting in an estimated $NZ50 million revenue shortfall for the period. Engine lease costs are now projected to increase by $NZ20 million due to end-of-lease obligations on two short-term aircraft not included in prior estimates.
Air New Zealand also faces an additional $NZ10 million in costs related to the international CORSIA emissions scheme, which further adds to already elevated fuel expenses. The carrier stated it remains focused on its long-term recovery strategy, and is maintaining its current workforce. The airline continues to support both fleet growth and ongoing infrastructure investments across its network.
Notably, between nine and eleven aircraft have remained grounded since the beginning of FY26 due to ongoing engine supply issues. Air New Zealand cautioned against extrapolating the first-half guidance to the full financial year, citing planned capacity growth in the second half. The airline assumes an average jet fuel price of US$85 per barrel for the period and will provide further updates to the market as conditions evolve.
