Air New Zealand Limited (NS) Analysis

Overview

At Air New Zealand we provide world-class air passenger and cargo services to, from and within New Zealand. We operate one of the most comprehensive domestic and regional networks in the world, flying to 20 destinations across New Zealand, offering more than 400 flights every day.

Internationally, our strategic focus and competitive advantage lie within the Pacific Rim where our network reach extends from New Zealand into Australia, the Pacific Islands, Asia and North America. Alongside key global alliance partners, including United Airlines, Singapore Airlines, Cathay Pacific and Air China, we connect New Zealand to more than 600 destinations worldwide.

Our network serves more than 16 million passengers every year and is operated by a fleet of more than 100 aircraft and over 11,000 employees globally.

Our Airpoints™ loyalty programme is considered the premier loyalty programme in New Zealand and provides members with an easy and transparent currency - Airpoints Dollars™. Members earn points by travelling with the airline and spending at retail partners. With over four and a half million members, Airpoints provides us with unique data points that help us understand our customers and their travel needs.

Our simplified and modern fleet consists of fuel-efficient aircraft, across a small number of aircraft types, which provides the airline with a competitive cost structure and greater operational efficiencies.

We maintain a disciplined approach to capital allocation supported by our Capital Management Framework, which enables us to balance capital allocation decisions between re-investment in the business, our sustainability ambitions and returns to shareholders over the long-term.

We have a credit rating of Baa1 from Moody's, with a stable outlook, making us one of the top investment-grade rated airlines in the world.

Find out more about Air New Zealand

• Board

• Executive management team

• Corporate governance

• Board committees and charters

• Corporate and social responsibility policies

• Investor centre

Performance

The following information was extracted from Air New Zealand's Half Year results, released on 26 February 2026:

Summary

•1H 2026 Loss before taxation of $59 million

•1H 2026 Net loss after taxation of $40 million

•1H 2026 EBITDA of $347 million

•Result largely driven by global engine maintenance delays, slower than expected recovery in domestic demand, increasing aviation system costs and a weaker NZD

•Strategic review underway to reset the business amid continuing cost escalation across the aviation system and supply chain

•No interim dividend declared, in line with the airline’s Capital Management Framework

•Based on current trading conditions and assuming an average jet fuel price of US$85 per barrel for the second half, Air New Zealand expects second-half earnings to be broadly in line with, or modestly below, the first half

•The airline will take delivery of the first two of ten new GE-powered 787s at the end of the financial year supporting widebody capacity growth of approximately 20% to 25% over the next two years

•Continued advocacy for fit-for-purpose aviation sector settings that underpin connectivity and affordability

Air New Zealand today announced a loss before taxation of $59 million for the first half of the 2026 financial year, compared with earnings before taxation of $144 million in the prior corresponding period. The net loss after taxation was $40 million.

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. Cost pressures have been further exacerbated by a weaker New Zealand dollar. The result is slightly outside the guidance range of a loss of $30 to $55 million provided to the market in October 2025, primarily reflecting a $13 million headwind from higher-than-assumed fuel prices in the second quarter.

While the airline received $55 million in compensation from engine manufacturers for the first half, it estimates an additional $90 million of earnings could have been included within the result had the fleet operated as intended. The airline is in ongoing negotiations with engine manufacturers to improve certainty around engine return schedules and appropriate compensation.

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