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Air New Zealand posts smaller-than-expected drop in annual profit

Air New Zealand posted a smaller-than-expected fall in annual earnings on Thursday as global engine maintenance issues continued to weigh on the bottom line, and warned of a weak start to the 2026 financial year.

New Zealand's flagship airline reported earnings of NZ$189 (US$110.96) million for the fiscal year ending June 30 compared to NZ$222 millions a year ago.

This compares to the Visible Alpha consensus estimate for NZ$178.6 millions.

The airline stated that the uncertainty surrounding engine maintenance issues and the sharp increase in aviation sector levies, as well as the subdued demand in domestic markets, are "expected" to negatively impact the airline's performance in the first six months.

The company expects that its pretax profits for the first half 2026 will be comparable to or lower than those reported for the second half 2025 of the financial year.

It announced a final dividend at 1.25 New Zealand Cents per share. This is the same as last year. $1 = 1.7033 New Zealand Dollars (Reporting and editing by Alan Barona in Bengaluru, Rajasik Mukherjee, Keshav Singh Chudawat)

(source: Reuters)