Air New Zealand flags lower second-half earnings

The news: Air New Zealand has flagged a slide in second-half earnings guidance citing grounded aircraft and lower compensation from engine manufacturers.

The numbers: The airline now expects FY25 earnings before taxation to be in the range of NZD150 million ($140 million) to NZD190 million ($177 million). It reported earnings of NZD155 million for the first half.

The context: New Zealand’s flagship carrier said it expects a substantial reduction in compensation from engine manufacturers during the period, despite an increased number of grounded aircraft. The groundings stem from global maintenance requirements on the Pratt & Whitney and Rolls Royce engines that power its Airbus and Boeing fleet. Given the ongoing uncertainty, the airline expects to recognise compensation of between NZD35 million and NZD40 million for the second half, down from the NZD94 million it received in the first half.

The airline said it has seen no material changes in bookings and cargo, but recent US tariff announcements have added uncertainty to the broader demand environment.