Air New Zealand Reports FY2025 Profit of $126 Million Amid Ongoing Challenges
Air New Zealand has announced earnings before taxation of $189 million for the financial year ended 2025, compared with $222 million in the prior year. Net profit after taxation was $126 million.
The result reflects the impact of engine maintenance challenges, cost inflation, and a softer domestic market. Passenger revenue fell 2 percent to $5.9 billion, due to a 4 percent reduction in network capacity.
Fuel costs decreased 12 percent, or $208 million, due to lower average jet fuel prices and reduced consumption. Non-fuel operating costs increased by approximately $235 million, driven by higher landing charges, labour costs, and engineering expenses.
The airline reported that its Kia Mau transformation programme delivered approximately $100 million in benefits through improved product offerings, increased ancillary revenue, operational efficiencies, and reduced disruption costs.
The Board declared a final ordinary dividend of 1.25 cents per share, payable on 25 September 2025, with $38 million also returned to shareholders via a share buyback.
Chief Executive Greg Foran noted that up to six narrowbody and five widebody aircraft were grounded during the year. The airline received $129 million in compensation from engine manufacturers but estimated that earnings could have been $165 million higher had its fleet operated normally.
Air New Zealand stated that it continues to collaborate with Rolls-Royce and Pratt & Whitney on compensation and engine return timelines. The airline expects constraints to continue through 2026 but indicated that gradual improvements are emerging.
In 2025, the airline completed the retrofit of four Boeing 787-9 aircraft, announced plans for a new international lounge at Auckland Airport, and progressed with infrastructure projects, including the construction of a new engineering hangar. It will also take delivery of two new Boeing 787s with GE engines, an A321neo, and an ATR aircraft in 2026.
For the first half of FY2026, the airline expects earnings before taxation to be similar to or lower than the $34 million reported in the second half of FY2025, due to ongoing engine issues, higher industry charges, and subdued demand.
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