Air New Zealand (ASX:AIZ) trims FY24 earnings expectations

Air New Zealand updated its first-half FY24 earnings guidance, anticipating results around the lower end of the NZ$180 million ($168.2 million) to $230 million ($215 million) range.

Ongoing softness in domestic travel, especially in corporate and government sectors, persists, with late bookings weaker than last year. Leisure demand in domestic and trans-Tasman markets also softened.

While North American travel demand remains solid, pricing pressure is noted due to increased competition from US carriers.

The airline monitors booking patterns, addresses Pratt & Whitney engine issues, and refrains from providing full-year guidance due to economic and inflation risks, cautioning against extrapolating first-half trends.

Air NZ expects the second half of FY24 to be increasingly challenging.