Auckland: Air New Zealand has announced a forecasted decline in earnings for the first half of the 2025 financial year, citing ongoing global engine maintenance delays that have impacted aircraft availability. The airline expects pre-tax earnings between NZ$120 million ($70.15 million) and NZ$160 million for the six months ending December 31, a drop from the NZ$185 million recorded during the same period last year.
Despite this decline, the projected earnings represent a significant improvement compared to the NZ$37 million pre-tax profit reported in the second half of 2024. Shares of Air New Zealand rose as much as 2.8%, reaching NZ$0.550—the highest level since mid-September—while New Zealand’s broader benchmark index gained 0.3%.
Engine Maintenance Woes Continue
The Auckland-based carrier attributed the diminished earnings outlook to ongoing maintenance challenges, particularly with Pratt & Whitney engines. Earlier in the year, these issues rendered six Airbus neo aircraft temporarily inoperable. As of Monday, the airline confirmed that delays have affected up to six Airbus neo planes and as many as four Boeing 787 aircraft—representing 16% of its jet fleet—during the first half of the financial year.
“Disappointing to read that engine availability issues are not expected to ease until 2026,” remarked Tom McBride, financial adviser at Hamilton Hindin Greene.
To address capacity shortfalls, Air New Zealand is exploring additional aircraft leases and other measures to mitigate the impact of these disruptions.
Also Read | £25 Billion Tax Rise Could Stifle Business Growth, CBI Warns
Challenges in Domestic Travel
The airline also flagged softness in domestic travel demand, a segment that accounts for 65% of its passenger base. This trend could further challenge recovery efforts in its core market.
Also Read | Intel’s $8.5 Billion Chips Grant Faces Reduction Under US Plans: Report
Despite these setbacks, the airline remains committed to navigating operational difficulties and enhancing capacity to meet long-term demand.
