Air New Zealand reported a $40 million net loss after tax for the first half of its financial year, driven by rising costs and operational challenges. The airline announced a strategic “reset” to address these issues, including engine maintenance delays, sluggish domestic demand, escalating aviation system costs, and the impact of a weaker New Zealand dollar.
The company did not declare an interim dividend and acknowledged that higher fuel prices contributed to a $13 million setback in the second quarter. Air New Zealand is undertaking a comprehensive strategic review to ensure long-term profitability through enhanced operational performance and cost transformation. Two new Boeing 787 Dreamliners, expected later this financial year, are anticipated to boost capacity by 20% to 25% over two years.
Under the leadership of new CEO Nikhil Ravishankar, the airline is focused on stabilizing operations and enhancing regional connectivity. Ravishankar expressed disappointment over unresolved engine issues but noted that progress is underway, with expectations of returning four grounded aircraft to service this year.
Meanwhile, the Qantas Group reported a robust A$1.456 billion pre-tax profit for the same period, attributing increases in costs to airport charges and government fees but mitigating these through industry-wide transformation efforts. The group anticipates strong travel demand and moderate revenue growth across its operations.