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Air New Zealand has warned its problems with aircraft availability may not be resolved next year.
In its half-year earnings guidance to investors, the carrier advised that up to six Airbus neo aircraft and up to four 787 Dreamliners have been out of service in the first half of the 2025 financial year, due partially to global delays in engine maintenance.
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“This represents over 16 percent of Air New Zealand’s entire jet fleet. Based on current assumptions and recent discussions with engine manufacturers, the airline does not expect these availability issues to ease until early 2026,” the airline said.
“However, the airline continues to explore all options to improve capacity including further aircraft leases.”
Noting “early signs of recovery” in corporate travel, though government demand is subdued, the airline expects first-half earnings of approximately NZ$120 million to $160 million.
“This includes approximately $10 million of unused travel credit breakage, $30 million of compensation from engine manufacturers relating to prior periods (as part of a broader compensation package) and a gain of approximately $20 million on the sale and leaseback of four A320 aircraft,” the airline said.
“This guidance range also assumes an average jet fuel price of US$91 per barrel for the first half.
“Targeted reductions in competitive capacity on the North American market over the peak Northern Winter season have also been noted.”
Air New Zealand in August saw its profit slashed by more than half in the 2024 financial year, posting a NZ$222 million ($204 million) profit in FY2023–24.
This was down from NZ$574 million ($530 million) in FY22–23, which it attributed to previously forecast headwinds in the second half of the year.
While passenger revenue increased 11 per cent to NZ$5.9 billion, the airline was weighed down by a tougher NZ economy; maintenance issues with Pratt & Whitney PW1100 and Trent 1000 engines on its Airbus neo and Boeing 787 aircraft, respectively; high inflation, and competition from US carriers.
While these have continued to impact Air New Zealand’s performance, the carrier said it “has taken proactive steps to mitigate these”.
“The airline continues to drive innovations and customer initiatives including updating its Seats-to-Suit offering and deploying live chat capability to reduce customer wait times and cost to serve,” it said.
“The airline also continues to make investments across the business which are contributing toward operational efficiencies, customer satisfaction and profitability.”
Last month, Air New Zealand began the retrofitting program on its Dreamliner fleet, saying it will be the first airline in the world to refit a 787-9 from nose to tail.
These retrofits, which will be performed on all 14 of Air New Zealand’s existing 787-9s, will not add the new Skynest economy sleeping pods; these will instead feature on its eight new Dreamliners expected to arrive from next year. The airline was the launch customer for the 787-9 in 2014.
