Air New Zealand has announced a strategic review is underway after it slumped to a half year loss.
New Zealand’s national carrier posted a net loss of NZ$40 million (US$24 million) for the six months ended 31 December 2025 compared with a $98 million profit in the previous corresponding period.
“This result reflects the combined impact of ongoing fleet constraints, a slower recovery in domestic demand and rising costs, including persistently high aviation system inflation,” the airline said in a stock exchange announcement.
The airline did not declare an interim dividend, and forecast second-half earnings to be broadly in line with, or modestly below, the first half due to continued pressure from aviation system and supply chain costs.
The result compared with a guidance range of a loss of $30 to $55 million flagged in October 2025 and included a $13 million headwind from higher-than-assumed fuel prices in the second quarter.
Operating revenue grew just 1.2% to $3.444 billion while the diluted loss per share came in at 1.2 cents compared with a 2.9 cent profit in the pcp.
Air New Zealand said a review was underway to reset the business amid continuing cost escalation across the aviation system and supply chain.
Chair Therese Walsh said the Board had asked Nikhil Ravishankar to undertake a full strategy review when he became Chief Executive Officer in October because of the ongoing volatility, including continued global engine maintenance impacts and a slower recovery in domestic demand.
“The strategy reset will allow us to be firmly focused on strengthening and growing our airline to deliver long term growth and prosperity for New Zealand," Walsh said.
The airline will take delivery of the first two of 10 new GE-powered 787s at the end of the 2026 financial year, which would support growth of about 20% to 25% over the next two years in widebody capacity.
It also continued to advocate for fit-for-purpose aviation sector settings that “underpinned connectivity and affordability”.
Air New Zealand shares closed unchanged at 48 cents on Wednesday, capitalising the airline at $1.85 billion.
