Air New Zealand’s (NZ) ongoing engine issues further bit into its bottomline, as it forecast lower earnings for the first half of financial year 2025. this is as Air NZ global engine issues with maintenance delays caused aircraft availability issues, the airline said on Monday. The lack of planes along with a mixed travel market are set to reduce Air New Zealand’s half-year earnings result.

New Zealand’s flagship carrier Air NZ expects its earnings before taxation in the first half ending December 31 to be in the range of NZ$120 million ($70.15 million) to NZ$160 million. This Air NZ’s earnings are less compared with NZ$185 million it had reported a year earlier.
Air NZ’s projected outlook
Air NZ’s projected forecast will be much higher than its second-half earnings of financial year 2024. The Air NZ had reported a pre-tax profit of NZ$37 million in the second half of 2024.
The projected earnings include NZ$10m from unused travel credit breakage, NZ$30m in compensation from engine manufacturers, and a NZ$20m gain from the sale and leaseback of four A320 aircraft. The guidance assumes an average jet fuel price of US$91 per barrel.
The Auckland-based carrier said last year’s engine maintenance issues had dented its 2025 prospects as well.
Shares in Air New Zealand rose following the announcement, reflecting optimism about the company’s efforts. The Air NZ stock currently is trading 2.11% higher at 48.5 cents.
Air New Zealand’s maintenance issue
Earlier this year, the airline had flagged that maintenance needs for its Pratt & Whitney engines led to six of its Airbus neo aircraft being inoperable at times.
On Monday, the company reiterated the ongoing engine issues. It said engine maintenance delays had caused its six Airbus neo aircraft and up to four Boeing 787 aircraft mounting to 16% of the carrier’s entire jet fleet to be out of service across the first half of this financial year.
“Disappointing to read that engine availability issues are not expected to ease until 2026,” said Tom McBride, financial adviser at Hamilton Hindin Greene.
Air NZ’s operational improvements
The Air New Zealand noted mixed trends in demand. Corporate travel is beginning to recover, while government travel remains subdued. Targeted reductions in competitive capacity on North American routes during the peak Northern Winter season may provide additional relief.
Air New Zealand continues to focus on operational improvements, including updates to its Seats-to-Suit offering and the introduction of live chat capabilities to enhance customer service and efficiency. The airline reiterated that full-year guidance would be provided during its interim results announcement, citing uncertainties in the trading and operating environment.
Air NZ’s softer demand
Air New Zealand said it would continue to look at leasing further aircraft, among other measures, to improve capacity.
The airline also flagged that domestic travel demand has remained soft. Domestic travel accounts for 65% of the airline’s passengers.
Air New Zealand stock update
Shares of Air NZ gained as much as 2.8% to NZ$0.550, hitting its highest level since September 13, while the broader benchmark index traded up 0.3% as of 0002 GMT.



