Air New Zealand reports resilient 2025 results despite headwinds

Air New Zealand announced earnings before taxation of NZD189 million for the 2025 financial year, a decrease from NZD222 million in the prior year but at the upper end of its guidance range. Net profit after taxation stood at NZD126 million. This reflects resilience in the face of ongoing global engine maintenance issues, which led to a 4% reduction in overall network capacity, grounding up to six narrowbody and five widebody jets. The airline also reported NZD38 million in shares repurchased under its buyback program.

Passenger revenue declined by 2% to NZD5.9 billion. While fuel costs improved by 12%, or NZD208 million, due to lower jet fuel prices and reduced consumption, non-fuel operating costs increased by approximately NZD235 million, or 6%, driven by higher landing charges, labour costs, and engineering materials. The airline received NZD129 million in compensation from engine manufacturers.

The company declared a final unimputed ordinary dividend of 1.25 cents per share. Looking ahead to the first half of the 2026 financial year, earnings before taxation are expected to be similar to or less than the NZD34 million reported in the second half of 2025, primarily due to uncertainty surrounding engine compensation and increased aviation sector levies.