Air New Zealand highlights jet fuel, engines, system costs and maintenance impacts in FY2026 results

Air New Zealand reported (28-Aug-2026) a loss before taxation of NZD336 million (USD200.1 million) for the 12 months ended 30-Jun-2026, compared with earnings before taxation of NZD164 million (USD97.7 million) in the prior year. The carrier reported a net loss after taxation of NZD242 million (USD144.1 million) for FY2026. Air New Zealand reported the result is "slightly better than the guidance range" provided to market in May-2026, attributing the performance to the following primary factors:

• Jet fuel prices: The Middle East conflict increased fuel cost by an estimated NZD328 million (USD195.3 million) compared to the carrier's expectations prior to H2FY2026 - as well as by NZD205 million (USD122.1 million) after hedging - with an estimated NZD135 million (USD80.4 million) impact on the pre-tax result after fare adjustments and capacity reductions;
• Engine availability: Ongoing Rolls-Royce Trent 1000 and Pratt & Whitney PW1100 engine issues impacted the result by an estimated NZD190 million (USD113.1 million) through lost capacity, additional lease and engine costs, lower fleet utilisation and operating inefficiencies;
• Aviation system costs: New Zealand aviation costs have risen at more than twice the rate of inflation since 2019. Air New Zealand stated its share of these costs alongside its passengers and airports was NZD1.2 billion (USD714.5 million) in 2026, an increase of NZD142 million (USD84.6 million) compared to 2025. The carrier stated that of this, approximately NZD720 million (USD428.7 million) was recognised as a cost in its financial statements in 2026 - a price increase of approximately NZD83 million (USD49.4 million) compared to 2025;
• Maintenance: 2026 was a peak aircraft maintenance year, with an increase of NZD139 million (USD82.8 million), excluding foreign exchange, compared to 2025 - driven by lifecycle maintenance costs and additional maintenance costs on leased engines.

Air New Zealand CEO Nikhil Ravishankar stated: "It's been a very challenging year for aviation, and our financial result reflects these challenges. Given the price sensitivity of air travel, airlines globally have not been able to recover the full increase in fuel costs". Mr Ravishankar added: "We have also taken decisive action to simplify parts of the organisation and evolve our operating model, including restructuring across a number of areas to reduce duplication, sharpen accountability and improve productivity. We have retrofitted nine out of 14 of our Boeing 787 fleet - and the new interior product is resonating very well with customers. The remaining 787 fleet fit-out will be completed by November this year, slightly ahead of schedule". He continued: "After several years of disruption, the engine challenges that have constrained our network are now substantially behind us... There are still residual risks and costs to work through, but we enter 2027 in a considerably more reliable fleet position". [more - original PR]