Air New Zealand adjusts FY2026 outlook to reflect impacts of Middle East conflict

Air New Zealand provided (14-May-2026) an update on its FY2026 outlook, reflecting the "significant impact of elevated and volatile global jet fuel prices" resulting from conflict in the Middle East. The carrier reported an expected loss before taxation in the range of NZD340 million (USD201.6 million) to NZD390 million (USD231.2 million), based on current trading conditions and an assumed average jet fuel price of approximately USD145 per barrel for H2FY2026. The updated range includes the impact of materially higher fuel costs, partly offset by approximately NZD70 million (USD41.5 million) of mitigation actions. The outlook also approximately NZD50 million (USD29.6 million) of unexpected leased engine maintenance costs and NZD12 million (USD7.1 million) of lower compensation reflecting the earlier than expected return of engines. The carrier added that whilst fare increases have been implemented, recovering the full impact of higher fuel costs over a short period would "risk further demand softness", with the airline therefore taking "a measured approach to pricing and capacity". Air New Zealand has made three targeted capacity consolidations to date, reducing overall capacity since the conflict by 3%-5%. It expects to announce further capacity updates in coming weeks should fuel prices remain at elevated levels. The carrier also confirmed its aircraft availability has "improved significantly since" its interim results, with all existing Boeing 787s expected to return to service by late Jun-2026 and all Airbus aircraft by 2027. [more - original PR]