Air New Zealand Profit Falls 15% Amid Global Engine Maintenance

Air New Zealand reported a 15% decline in its full-year earnings for the 2025 financial year, with pretax profit falling to NZ$189 million ($111 million) from NZ$222 million the previous year, reflecting challenges from ongoing global engine maintenance issues and a soft domestic market. Passenger revenue decreased by 2% due to a 4% reduction in network capacity caused by grounding of 11 jets for engine maintenance, which also increased operating costs alongside rising fuel and regulatory expenses. Despite these pressures, the airline's management, led by Chair Dame Therese Walsh and CEO Greg Foran, emphasized disciplined cost control, renegotiation of supplier contracts, and strategic actions like securing additional engines and optimizing schedules to maintain network stability. The carrier anticipates continued pricing pressures and engine availability constraints into 2026, though there are early signs of gradual improvement. Air New Zealand declared a final dividend and returned $38 million to shareholders via a share buyback program, underscoring confidence in its financial position despite the operational challenges. The airline is actively working with engine manufacturers Rolls-Royce and Pratt & Whitney on compensation arrangements related to the disruptions.