Air New Zealand has posted a net loss after taxation of approximately $144 million (NZD $242 million) for the financial year, alongside a pre-tax loss of roughly $200 million (NZD $336 million). The earnings result contrasts with a pre-tax profit of around $97 million ($164 million) recorded in the previous 2025 financial period. Despite the losses, the airline noted that the final financial outcome was slightly better than the market guidance range previously issued in May 2026.
New Zealand Prime Minister Christopher Luxon, who previously served as the Chief Executive Officer of Air New Zealand, publicly criticized the carrier's financial results, describing the performance over the past financial year as very poor. Luxon stated that the airline must address its operational performance rapidly and urged management to clearly explain the underlying factors behind the substantial loss alongside plans to build a stronger business.
According to Air New Zealand, the financial headwinds were driven primarily by sharp spikes in jet fuel prices linked to the conflict in the Middle East, alongside higher aviation system and maintenance expenses. Furthermore, ongoing technical and availability issues involving Rolls-Royce Trent 1000 and Pratt & Whitney PW1100 engines impacted the annual result by an estimated $190 million through lost capacity, supplemental leasing expenses, reduced fleet utilization, and operational inefficiencies.
Air New Zealand Chief Executive Officer Nikhil Ravishankar described the period as a very challenging year for the aviation sector but noted that network constraints linked to engine availability are now substantially behind the carrier. Ravishankar highlighted that operational teams worked with engine suppliers to return grounded aircraft to active service earlier than initially anticipated, positioning the fleet for improved operational reliability entering the 2027 financial year.
Looking ahead, Air New Zealand announced that it is currently unable to provide financial earnings guidance for the 2027 financial year. An airline spokesperson cited ongoing uncertainty surrounding regional geopolitical conflicts and significant volatility in jet fuel prices, which have reached around $150 per barrel, as the primary reasons for withholding forward guidance.
