Air New Zealand financial performance

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

The airline attributed the losses to compounding factors, including surging jet fuel prices driven by conflict in the Middle East, which had a NZ$135 million impact on pre-tax results after hedging and adjustments. Additionally, ongoing engine availability issues involving Rolls-Royce Trent 1000 and Pratt & Whitney PW1100 models cost the carrier approximately NZ$190 million due to lost capacity, increased lease costs, and operating inefficiencies. Other 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. Chief Executive Nikhil Ravishankar noted that engine-related disruptions are beginning to ease and that the airline is entering 2027 in a more reliable fleet position. However, New Zealand Prime Minister Christopher Luxon criticized the performance, describing it as a “very poor result.”