Air New Zealand Stock Earnings Reports

Air New Zealand reported FY2025 EBIT of $189m and NPAT of $126m, delivering the upper end of guidance despite significant operational headwinds. Key drivers: persistent engine availability issues (with up to ~20% of jets out at times) reduced capacity by ~4% and are estimated to have cost the business $280–$320m in combined direct and indirect impacts for the year. The company delivered ~NZ$100m of transformation (Kia Mau) EBITDA benefits in FY25 and targets materially more (c.$200m) across FY26–FY28, funded by a mixture of ancillary revenue, cost efficiencies and productivity. Compensation from engine manufacturers totaled $129m (of which $107m related to FY25), currently covering roughly one-third of the estimated engine-related impact. Non-fuel operating costs remain under pressure—up ~30% since 2019—with further structural increases (new passenger levies, air navigation and landing charges) expected to add roughly $85m in cost. CapEx remains elevated with a ~$3.7bn aircraft plan to 2030; the Board has exercised options to increase 787 firm orders to 10, with first GE-powered 787s expected late FY26. Liquidity and credit metrics are strong (Moody’s Baa1 affirmed); the company declared a final unimputed dividend and is continuing a $100m buyback program (c.$40m executed so far). Outlook: FY26 capacity growth is expected to be low single-digit, with a more meaningful recovery in FY27–FY28 as engines are returned and new 787s enter service. Near-term earnings are uncertain due to compensation negotiations and rising aviation levies; the company expects H1 FY26 EBIT to be similar to or below H2 FY25 (H2 FY25 EBIT = $34m).