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Air New Zealand Limited (ASX:AIZ)

ALERT: Price-sensitive ASX Announcement for AIZ
Current share price for AIZ : $0.350 -0.175 (-33.33%)+
Announcement
Release
22 Oct 2025 7:30AM
Price at Release
$0.525
Full Release
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Summary
Air New Zealand provided a trading update for the first half of the 2026 financial year, detailing the company's challenges and financial outlook. The airline anticipated a 2% to 3% increase in revenue across domestic and US-bound bookings which has not materialized, impacting expected earnings by approximately $50 million. Additionally, engine lease costs are projected to rise by about $20 million due to end-of-lease obligations, and carbon offsetting costs have increased by around $10 million. The company expects a pre-tax loss between $30 million to $55 million, assuming average jet fuel costs of US$85 per barrel. Despite these challenges, Air New Zealand is focused on long-term growth, maintaining fleet and staff, and advocating for reduced airport landing charges to aid New Zealand's economy and tourism. The airline also continues to seek compensation for unserviceable engines and plans additional capacity growth in the second half, urging caution in annual financial projections based on first-half results.
Key Points
  • Air New Zealand expects a pre-tax loss of $30 million to $55 million for 1H 2026.
  • Revenue growth did not meet expectations, impacting earnings by $50 million.
  • Engine lease costs will increase by $20 million due to end-of-lease obligations.
  • Carbon offsetting costs have risen by approximately $10 million.
  • The airline emphasizes long-term growth, maintaining fleet and workforce.
  • Air New Zealand advocates for lower airport landing charges.
  • Negotiations continue for compensation for unserviceable engines.
  • Cautions against extrapolating first-half financials for full-year projections.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.