Air New Zealand (ASX:AIZ) has reported a statutory net loss after taxation of NZ$40 million for the first half of the 2026 financial year, a sharp decline from the NZ$144 million earnings recorded in the previous corresponding period.
The airline’s loss before taxation reached NZ$59 million, slightly exceeding the guidance range issued in October 2025.
The downturn was primarily attributed to a NZ$13 million headwind from higher-than-expected fuel prices in the second quarter and a weakened New Zealand dollar.
The national carrier continues to struggle with global engine maintenance delays and a sluggish recovery in domestic demand.
Despite receiving NZ$55 million in compensation from engine manufacturers, the airline estimated that an additional NZ$90 million in earnings was lost due to fleet constraints.
The board has directed CEO Nikhil Raval to undertake a comprehensive strategic review to reset the business.
Looking ahead, Air New Zealand expects second-half earnings to remain consistent with or slightly below the first-half results, assuming jet fuel prices average US$85 per barrel.
No interim dividend was declared.
The airline confirmed it will take delivery of its first two new GE-powered 787 aircraft by the end of the financial year.
This is part of a broader plan to increase widebody capacity by 20% to 25% over the next two years, aimed at strengthening long-term prosperity for the nation’s export and tourism sectors.