Air New Zealand post loss of $242M in FY26
- Air New Zealand reported a net loss after taxation of NZ$242 million for the 2026 financial year.
- Operating cash flow fell to NZ$819 million while jet fuel costs increased by NZ$205 million after hedging.
- The carrier skipped its final dividend as rising system costs and engine maintenance issues eroded profitability.
Air New Zealand (ASX:AIZ) recorded a net loss after taxation of NZ$242 million for the 2026 financial year as surging operational expenses dragged down earnings.
The financial downturn reverses an earnings before taxation performance of NZ$164 million in the prior year despite total revenue growing 3.9% to NZ$7 billion.
The airline stated that ongoing Rolls-Royce and Pratt & Whitney engine availability issues reduced earnings by an estimated NZ$190 million through lost capacity and extra lease costs.
Air New Zealand CEO Nikhil Ravishankar said the airline had responded decisively to prolonged engine constraints and the sharp increase in fuel prices, while continuing to improve the customer experience and operational performance of the airline.
Additional cost pressure came from New Zealand aviation system charges, which rose NZ$142 million over 2025 levels to reach NZ$1.2 billion.
The airline did not declare a final dividend for shareholders in accordance with its capital management framework.
Following the announcement, the Air New Zealand share price was down at $0.32.
Given the continued uncertainty surrounding the conflict, the volatility of jet fuel prices, and with jet fuel currently around US$150 per barrel, the airline did not provide guidance for FY27.
The national carrier generates revenue primarily from domestic and international passenger transport alongside air cargo services across the Asia-Pacific region.
