Air New Zealand has announced a $NZ59 million loss, exceeding earlier projected losses of between $NZ30 million and $NZ55 million. The airline attributed the disappointing result to a combination of factors, including ongoing fleet problems, a slower-than-anticipated recovery in domestic demand, increasing aviation expenses, and the weakening New Zealand dollar. The carrier is currently grappling with engine-related issues affecting both its Airbus A320 and Boeing 787-9 Dreamliner fleets.
Air New Zealand received $NZ55 million in compensation from engine manufacturers during the first half of the year. However, the company estimates that its earnings could have been approximately $NZ90 million higher had its fleet operated without disruptions. Management is actively engaged in negotiations with engine manufacturers to improve the predictability of engine return schedules and minimise further disruptions.
Air New Zealand is the flag carrier airline of New Zealand, operating scheduled passenger flights and cargo services to destinations in Asia, Europe, North America, and Oceania. In October, Nikhil Ravishankar succeeded Greg Foran as the airline’s chief executive. Ravishankar announced that the company would conduct a comprehensive review of its operations to address the challenges it faces. This loss stands in contrast to the anticipated results from Qantas and Virgin Australia, expected to be released later this week.
