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Air NZ posts NZ$336 million pretax loss
Livemint··31 Aug
Air New Zealand reported a pretax loss of NZ$336 million for the 12 months through June 30, smaller than the NZ$390 million loss it had indicated. Rising fuel costs from the Middle East war cost the airline NZ$135 million after fare hikes. Engine maintenance issues added NZ$190 million, and the company stopped short of pledging an immediate return to profit.
Prism
What It Means For You
- Passengers on Air New Zealand routes may face continued capacity constraints as the airline leases less-efficient aircraft during engine maintenance delays.
- Travellers booking Air New Zealand flights face an airline that cut costs and delayed new aircraft deliveries to improve resilience.
- Customers on key routes affected by reduced capacity may see schedule adjustments while Rolls-Royce and Pratt and Whitney engine issues persist.
What's Happening
- Chief Executive Officer Nikhil Ravishankar said the airline is making deliberate choices on capacity and taking a disciplined approach to costs.
- Prior to the Middle East conflict, the airline expected in its central case to return to profitability in the 2027 financial year.
- Disruption from engine availability is reducing substantially as aircraft return to service according to the company statement.
Air New Zealand Cost Pressures
- The Auckland-based airline's full-year results cover the 12 months through June 30.
- Ongoing lease commitments from engine issues could cost up to NZ$90 million in 2027 according to the company.
- The airline described 2027 as both a transition and recovery year with operational performance continuing to improve.
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