Air New Zealand is expecting earnings before tax for the 2025 financial year to be within the range of NZ$150 million ($88.6 million) to NZ$190 million ($112.2 million), compared to NZ$222 million ($131.2 million) that was reported in 2024.
The airline has been widely impacted by aircraft groundings, which have stemmed from global maintenance requirements on the Pratt & Whitney and Rolls-Royce engines that power the airline’s Airbus and 787 fleets.
In February, then Air New Zealand CEO Greg Foran noted that he believed it would be another two to three years until the airline's fleet is back to normal, expecting 11 aircraft - six narrowbody and five widebody - to be grounded during the second half of the fiscal year at any given time.
It was also noted in February that this year would be the first full 12-month period impacted by global engine maintenance requirements.
Current expectations are that 11 aircraft are grounded, despite the carrier securing seven additional leased engines and one further owned spare engine to stabilise the number of grounded narrow body jets.
“The airline is engaged in ongoing negotiations with engine manufacturers regarding appropriate levels of compensation for unserviceable engines and accurate timeframes for engine returns,” the airline stated.
The company said it expects compensation recognised in the second half of the year to be around NZ$35 million ($20.6 million) to NZ$40 million ($23.6 million). This is substantially lower than the NZ$94 million ($55.5 million) recognised in the first half, noting that approximately NZ$30 million ($17.7 million) of the first half compensation related to a one-off settlement for other periods.
In addition to engine maintenance delays, the airline noted that recent US tariff announcements have also added uncertainty to the broader demand environment. While no material changes in bookings or cargo have been observed, the company said it is closely monitoring the situation.
