Air New Zealand reports NZ$242 million annual net loss

Air New Zealand reported a significant financial downturn for the 2026 financial year, posting a pre-tax loss of NZ$336 million and an after-tax net loss of NZ$242 million. This marks a sharp reversal from the NZ$164 million pre-tax profit recorded in the previous year.

The airline attributed the losses to several compounding factors: surging jet fuel prices driven by the Middle East conflict, which had a NZ$135 million impact on pre-tax results after hedging and adjustments; and ongoing engine availability issues involving Rolls-Royce Trent 1000 and Pratt & Whitney PW1100 models, which cost an estimated NZ$190 million due to lost capacity and inefficiencies.

Additional pressures included rising aviation system costs and a NZ$139 million increase in maintenance expenses. Despite these challenges, total revenue rose 3.9% to NZ$7 billion, supported by a 4.8% increase in passenger revenue. CEO Nikhil Ravishankar noted that engine disruptions are beginning to ease and that the airline is entering 2027 in a more reliable fleet position. New Zealand Prime Minister Christopher Luxon criticized the performance, calling it a “very poor result.”