Air New Zealand has reported a 14.9 per cent decrease in earnings before tax, falling to $NZ189 million from $NZ222 million. This decline occurred as the airline’s available seat kilometres dropped by 4 per cent during the 12 months ending June 30. The result, however, is at the higher end of the guidance provided to the market in April, with net profit after taxation coming in at $NZ126 million. Air New Zealand is the flag carrier airline of New Zealand. It provides passenger and cargo transport services to and from New Zealand.
The airline noted that up to six narrow-body and five wide-body jets remained out of service in fiscal year 2025. It attributed the earnings decline to engine maintenance challenges, substantial cost inflation, and softening domestic demand. Chief Executive Officer Greg Foran cautioned that “no quick fixes” are expected for engine and demand issues in 2026. However, Foran indicated “early signs that the most acute phase of disruption will be behind us within the year”.
Despite these challenges, Air New Zealand will pay a 1.25¢ dividend and returned $NZ38 million to shareholders through a buyback program during the reporting period. Foran stated that the airline received $NZ129 million in compensation from engine manufacturers. He estimates that earnings before taxation of $NZ189 million could have been approximately $NZ165 million higher had the fleet operated as intended.
In positive news, fuel costs moderated by 12 per cent, a saving of $NZ208 million for the airline. “The path to recovery won’t be linear, but we’re approaching it with focus and discipline,” said Foran.
