Air New Zealand reports challenging 2025 as engine issues impact earnings

Air New Zealand reported earnings before taxation of $189 million for the 2025 financial year, down from $222 million in the prior year, with a net profit after taxation of $126 million. This was despite ASK capacity decreasing by 4 percent due to up to six narrowbody and five widebody jets grounded for engine maintenance. The airline declared a final unimputed ordinary dividend of 1.25 cents per share and repurchased $38 million of shares, while passenger revenue declined by two percent to $5.9 billion.

The airline saw fuel costs improve by 12 percent, or $208 million, while non-fuel operating cost inflation reached approximately $235 million. Group capacity was down 0.9% in July 2025 compared to last year, with Long Haul ASKs decreasing 2.4% and Short Haul International ASKs increasing 1.7%. Group YTD underlying RASK improved 1.0% compared to the prior year.

Looking ahead to 2026, engine availability constraints are expected to continue, though signs of gradual improvement are emerging. System-wide aviation costs are projected to be around $85 million higher, and the airline anticipates earnings before taxation for the first half of the 2026 financial year to be similar to or less than the $34 million reported in the second half of the 2025 financial year.