Air New Zealand highlights 'continued uncertainty' in outlook for FY2027

Air New Zealand reported (28-Aug-2026) it would have expected to return to profitability in FY2027 prior to the conflict in the Middle East, reflecting "improvements in the business". The carrier stated it is not in a position to provide earnings guidance for FY2027 owing to "continued uncertainty surrounding the conflict, the volatility of jet fuel prices and with jet fuel currently around USD150 per barrel". The carrier reported that excluding fuel, the major factors impacting its FY2026 result are "expected to continue to have some impact in FY2027", including an estimated financial impact of between NZD70 million (USD41.7 million) to NZD90 million (USD53.6 million) from a combination of continuing lease commitments related to engine issues and available aircraft not able to be fully utilised due to the fuel crisis. Air New Zealand also projected aircraft maintenance costs to be NZD50 million (USD29.8 million) to NZD100 million (USD59.6 million) lower than in 2026, with aviation system costs continuing to "rise well above inflation", with airport charges expected to increase by upwards of 10% at some ports during FY2027. The carrier stated it expects FY2027 to be "both a transition and recovery year", with operational performance continuing to improve "even as elevated fuel prices weigh on profitability". Air New Zealand CEO Nikhil Ravishankar stated: "We are seeing encouraging inbound demand, with strong forward bookings into New Zealand. This is a positive signal for tourism and for the country more broadly... We remain focused on executing our strategic priorities, improving financial performance and positioning the airline for long-term sustainable returns". [more - original PR]