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Air New Zealand records its biggest loss since 2023 due to fuel and engine costs

Air New Zealand reported its largest 'annual loss' in three years last Friday as higher fuel prices, linked to the Middle East conflict and persistent engine shortages squeezed earnings.

Since the U.S. - Iran war began, jet fuel costs have increased by more than doubled.

Air New Zealand's fuel bills increased by NZ$205m after hedging against what they expected at the beginning of the second half of fiscal 2026.

New Zealand's largest?carrier? reported a loss of NZ$336 (US$199.85) million for the year ending June 30 compared to a profit NZ$189.9 million a year ago. Visible Alpha had forecast a NZ$356.5 pretax?loss.

The impact of engine availability on profitability was estimated at NZ$190 millions.

Air New Zealand stated that it is not yet in a position to give earnings guidance for the year 2027. The company added that this will be a year of transition and recovery with improved operational performance even though fuel prices are increasing.

The airline didn't?declare final dividend.

(source: Reuters)