Issues surrounding aircraft availability have impacted Air New Zealand's first half fiscal year results, it said in a guidance update on November 25, 2024. The guidance was published in conjunction with its investor day event held on the same day.
The airline expects earnings before tax for the first half of the financial year to be between NZ$120 million ($70.2 million) and NZ$160 million ($93.6 million), down from NZ$185 million ($108.2 million) in its previous first half 2024 results. The earnings include around NZ$10 million ($5.9 million) of unused travel breakage, the gain of around NZ$20 million ($11.7 million) on the sale and leaseback of four A320 aircraft, as well as NZ$30 million ($17.6 million) from engine OEM manufacturers related to prior periods.
The company said up to six Airbus neo aircraft and four 787 aircraft were out of service during the first half of the financial year as result of engine maintenance delays. This represents over 16% of the carrier's entire fleet. The airline added that it expects these issues to last until early 2026 after discussions with engine manufacturers. Air New Zealand said it is exploring all options to offset the capacity issues, including further aircraft leases. The airline also noted government travel demand remains subdued and domestic travel was soft. In addition, it is making “targeted reductions” in capacity in the competitive North American market capacity over the peak winter season.
“Many of these factors have impacted performance for the 2025 financial year to date, albeit the airline has taken proactive steps to mitigate these,” the carrier said in its update.
However, the airline noted there were early signs of corporate travel recovery. In the airline's investor day presentation, the company said it is aiming to increase profitability driven by three pillars: growing its domestic performance and network, develop an international network focussed on premium leisure customers and cargo, and also through its loyalty programme.
The company's retrofit programme will see a higher percentage of business premium and premium economy seats on its 787 Dreamliner aircraft. By 2030, it expects a 30% increase in premium cabin mix.
Given the current environment, Air New Zealand said it will provide full year guidance when it has “sufficient capacity to do so” and cautioned against “extrapolating first half guidance” for the 2025 financial year to the full year.