Air New Zealand says FY26 loss could rise to NZD390m on higher jet fuel prices

The news: Air New Zealand said it expects to report a pre-tax loss in the range of NZD340 million ($278 million) to NZD390 million for FY26, driven by elevated jet fuel prices and leased engine maintenance costs.

The numbers: The company’s updated guidance includes the impact of “materially higher” fuel costs, as it now expects its second-half fuel costs to be approximately NZD980 million, compared to the NZD740 million previously estimated.

The context: The guidance also incorporates around NZD50 million in unexpected leased engine maintenance costs and NZD12 million in lower compensation. It added that while fare increases have been implemented, recovering the higher fuel costs over a short period would risk further demand softness.

Elsewhere, the company announced that Moody’s has downgraded the outlook on its Baa1 credit rating to ‘negative’.