Air New Zealand (AIR) H1 2026 earnings summary

Executive summary

• Reported a net loss after tax of NZD 40 million and a loss before tax of NZD 59 million for the half, reflecting ongoing operational and cost challenges, including fleet constraints and slower domestic demand recovery.

• Passenger revenue grew 3.6% year-over-year to NZD 3.0 billion, but flat network growth and inflationary pressures hurt profitability.

• Up to eight aircraft were grounded at times due to global engine maintenance disruptions, constraining capacity to about 90% of pre-COVID levels and resulting in NZD 90 million net earnings impact after NZD 55 million compensation.

• No interim dividend declared, consistent with capital management policy and focus on balance sheet resilience.

Financial highlights

• Operating revenue rose 1.2% year-over-year to NZD 3.4 billion, but operating cash flow fell 50% to NZD 213 million.

• Non-fuel cost inflation reached NZD 75 million (3.5%) in the half, mainly from mandated levies, engineering, and landing charges.

• Reported CASK increased 7.7% (5.7% underlying), with inefficiencies from fleet constraints and supplier cost inflation.

• Liquidity at period end was NZD 1.3 billion, within target range; net debt-to-EBITDA at 2.6x, slightly above target.

Outlook and guidance

• Second-half earnings expected to be in line with or modestly below the first half, subject to uncertainties in engine return, compensation, and input costs.

• Full-year non-fuel cost inflation forecast at NZD 150–175 million, with significant maintenance headwinds.

• Capacity growth of 3–4% planned for the second half, conditional on improved engine reliability and new aircraft deliveries.

• Compensation for engine issues in the second half remains under negotiation and could materially impact results.