Air New Zealand Stock Earnings Reports

Air New Zealand delivered statutory FY2025 EBIT of NZ$189m and NPAT of NZ$126m despite significant operational disruption. The company estimates the combined direct and indirect gross financial impact of engine availability issues at NZ$280–320m for the year, of which ~NZ$129m of compensation has been received (NZ$107m relating to FY2025). Management delivered ~NZ$100m of transformation EBITDA benefits in FY2025 and are targeting ~NZ$200m of transformation benefits in FY2026 (split roughly one-third ancillary/loyalty, one-third cost/productivity). Network capacity fell ~4% versus prior year; management now expects only low single-digit growth in FY2026 with a return-to-scale shifted from FY2027 to FY2028 as retrofits and new GE-powered 787 deliveries come online. Non-fuel cost inflation remains a material headwind (historic increases across engineering parts, air navigation and landing charges), with an expected further 3–5% non-fuel cost inflation in FY2026 and approximately NZ$85m of incremental annual costs from new levies and charges. Capital spend through 2030 is forecast at ~NZ$3.7bn (assumes USD/NZD 0.60); the Board approved exercising two additional 787 options (bringing firm 787 orders to 10). Balance sheet and liquidity are strong (Moody’s Baa1 reaffirmed); the company declared a final unimputed dividend of NZ$0.0125/share and has an ongoing NZ$100m buyback program (just under NZ$40m executed so far). Near-term outlook: H1 FY2026 EBITDA is expected to be similar to or below H2 FY2025 (H2 FY2025 EBITDA NZ$34m) due to continued engine uncertainty, higher aviation levies and subdued domestic demand. Management remains focused on scaling transformation, protecting liquidity, careful price management and preparing to capture earnings uplift as aircraft return to service.