Air New Zealand Heading for First Half Loss
- Air New Zealand anticipates a pre-tax loss of between $30 million and $55 million for the first half of its financial year, ending in December.
- Several factors have contributed to the downward revision of Air New Zealand's financial outlook:
- The airline stated it is indeed actively pursuing further cost-saving measures and efficiency improvements to mitigate the impact of these challenges.
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Air New Zealand Forecasts First-Half Loss of Up to $55 Million
Table of Contents
Updated October 22, 2025, 04:12:10 AM PDT
Overview
Air New Zealand anticipates a pre-tax loss of between $30 million and $55 million for the first half of its financial year, ending in December. This represents a meaningful downturn from earlier projections of a potential profit of up to $34 million. The revised forecast is attributed to lower-than-expected passenger numbers, increased operational costs, and ongoing engine maintenance issues.
Key Contributing Factors
Several factors have contributed to the downward revision of Air New Zealand’s financial outlook:
- Weaker Passenger Demand: The airline did not experience the anticipated increase in passenger numbers on domestic and US routes. Expansion of jet services between Hamilton and Christchurch, announced in May 2025, did not fully offset the overall demand shortfall.
- Engine maintenance Costs: Ongoing issues with engine repairs are expected to incur an additional $20 million in costs. These engine problems, initially reported in November 2023, continue to impact the airline’s operational efficiency and financial performance.
- CORSIA Costs: Costs associated with the Carbon Offsetting and Reduction scheme for International Aviation (CORSIA) have increased by approximately $10 million as the August outlook, leading to higher fuel expenses.
Financial Breakdown
The following table summarizes the key financial figures:
| Metric | Original Forecast (August 2025) | Revised Forecast (October 2025) |
|---|---|---|
| Pre-Tax Profit/loss | Up to $34 million profit | $30 million – $55 million loss |
| Additional Engine Repair Costs | N/A | $20 million |
| increased CORSIA Costs | N/A | $10 million |
Air New Zealand’s Response
The airline stated it is indeed actively pursuing further cost-saving measures and efficiency improvements to mitigate the impact of these challenges. Specific details of these measures were not immediately available, but the company indicated a commitment to restoring profitability.