Air New Zealand has recorded a NZ$59 million (round $50 million) pre-tax loss within the first half of the 2026 monetary yr, down from a worthwhile first half of 2025.
The airline has been roiled by continued complications with world engine upkeep delays; a “slower than anticipated” home restoration; and a weak NZ greenback, and says it expects second-half earnings to be “broadly consistent with, or modestly under, the primary half”.
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“Passenger income improved 4 % to $3 billion, supported by further capability throughout the Tasman and Pacific Islands, and the next mixture of premium seats on long-haul worldwide routes,” Air New Zealand mentioned in an announcement.
“Community capability total was broadly flat, with as much as eight plane grounded at instances on account of world engine upkeep delays.
“The airline skilled a slower than anticipated restoration in home demand; nonetheless, worldwide efficiency was supported by continued robust offshore bookings, notably within the premium cabins. Demand for outbound long-haul journey remained subdued.”
Air New Zealand chief government Nikhil Ravishankar mentioned the service is “enterprise a complete overview of all facets of the enterprise, with the target of returning the airline to sustained profitability by way of enhanced operational efficiency, development and additional price transformation initiatives.”
“On the similar time, a lot of efficiency and product enhancements are already underway, together with enhancements in home punctuality and reliability, and a choice to improve the interiors of our current 777 fleet, so our widebody product is constant, fashionable and mission prepared,” he mentioned.
“Whereas we’re disillusioned that the engine availability points have taken longer than anticipated to resolve, we’re happy with current progress and now anticipate a complete of 4 grounded Airbus neo and Boeing 787 plane to return to service all through the 2026 calendar yr.
“We may also take supply of two of ten new 787 plane later within the monetary yr, offering widebody capability development of round 20 % to 25 % over the following two years.
“I need to thank our prospects for his or her loyalty and Air New Zealanders for his or her ongoing professionalism and care for patrons and one another because the robust working setting persists.”
Based on the airline’s chair, Dame Therese Walsh, the board had requested Ravishankar to undertake a “full technique overview” when he took over from former chief government Greg Foran, on account of “ongoing volatility, together with continued world engine upkeep impacts and a slower restoration in home demand”.
“As New Zealand’s nationwide airline we play an essential function in supporting New Zealand, notably because it pertains to export and tourism,” she mentioned.
“The technique reset will permit us to be firmly centered on strengthening and rising our airline to ship long run development and prosperity for New Zealand.”
Although new and returning plane are anticipated so as to add capability within the second half, Air New Zealand has warned that “enhancements in plane availability are unlikely to translate instantly into earnings uplift”.
“It is because widebody capability can’t be operationalised into the schedule and bought at quick discover. The first constraint is uncertainty within the timing of plane and engine returns, which limits the power to plan and promote further flying with confidence,” the airline mentioned.
“Disruption-related prices and inefficiencies additionally take time to unwind, together with the return of leased plane and engines.
“Aviation system and provide chain price pressures are anticipated to proceed, reinforcing the significance of fit-for-purpose aviation sector settings that assist sustainable connectivity and affordability for patrons over time.”
Air New Zealand was Asia-Pacific’s second most on-time airline in 2025 based on Cirium, with 79.29 per cent of its flights arriving on time final yr, inserting it behind solely Philippine Airways at 83.12 per cent.
