Whilst Air New Zealand aircraft availability issues look to continue through to 2026, ceo Greg Foran says the airline is preparing for the future.
NZ’s first half results show that profit was down 18% year-on-year and Foran says 2025 is set to be particularly challenging financially. The carrier posted a net profit after tax of $106 million which NZ says is a strong result considering the ongoing operational challenges.
. . . 11 Planes Out
This year NZ will have up to 11 jets out of service at any time ‘in reality, it represents roughly 20% of each effected fleet’ adds Foran. “The operational ripple effects are substantial and I cannot overplay this enough, our teams are constantly in the market trying to source spare engines, readjusting network schedules, and then adjusting them again, accelerating maintenance timelines, sometimes nearly doubling our normal engine swap out rate,” he adds.
. . . Trade Important
NZ’s chief commercial officer Jeremy O’Brien says the H1 result highlights NZ’s resilience and adaptability amid ongoing operational and eonomic headwinds
He’s has also acknowledged the role agents are playing through this challenging period. “Our trade partners are so important to us, and I’d like to thank everyone for their patience and support over the past six months,” says O’Brien. “This result would not be possible without your continued partnership,” he says to the Kiwi travel agent distribution.
While the second half of the year will remain challenging for NZ, due to its fleet constraints and engine challenges, O’Brien says it’s also an exciting time with new product onboard NZ’s retrofitted aircraft, wifi trials on its domestic aircraft, a new uniform and commencing testing on its next-generation tech demonstrator aircraft.
. . . $140m Impact
NZ was compensated $94 million from engine manufacturers, for the engine issues, however Foran says it doesn’t come close to offsetting the full operational and financial burden. “We estimate about $140 million in adverse impacts,” he adds.
Foran says the capacity issues are likely to become more challenging into the first half of FY2026.
“So what are we doing about it?” he asks. “Quite simply, everything we can.” This includes additional leased engines, which are expected to arrive shortly. NZ also announced the start of a $100 million share buy-back program.
