US EditionAir New Zealand Earnings Down in a Soft Domestic Market
Engine maintenance problems grounded 11 jets, causing a 15% profit drop to NZ$126 million and a 2% fall in passenger revenue, with challenges expected to persist into 2026.
- Air New Zealand experienced a 15 percent decline in profit before tax, which fell to NZ$189 million for the full year ending June 2025, as ongoing engine maintenance problems at its Auckland hub continued to impact earnings.
- The profit decline followed global engine maintenance challenges that grounded six narrowbody jets and disrupted the airline’s network and schedule throughout 2024.
- To address engine-related challenges, the airline acquired three Boeing 777-300ER widebody aircraft, obtained extra spare engines, and adjusted its scheduling to preserve network reliability and continue serving passengers.
- Chief executive Greg Foran explained that the airline proactively addressed engine-related issues by obtaining extra engines and aircraft, although passenger revenue still declined by 2 percent to NZ$5.9 billion due to these challenges.
- Foran will step down in October, with Nikhil Ravishankar replacing him, while groundings and pricing pressures are expected to continue into 2026, likely keeping earnings constrained.
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Air New Zealand Profit Down as Demand Weakens and Engine Troubles Bite
Air New Zealand has reported a net profit of $126 million for the 2024–2025 financial year, down from $146 million a year earlier, and warned investors of more turbulence ahead. The airline will pay a final dividend of 1.25 cents per share. Revenue held steady at $6.8 billion, compared with $6.75 billion the previous year. Underlying profit was $189 million, down from $222 million, but still at the upper end of earlier guidance. The airline said…
·New York, United States
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Total News Sources13
Leaning Left2Leaning Right1Center3Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 33%
C 50%
R 17%
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