Air New Zealand to cut jobs after full-year profit slump

The news: Air New Zealand expects to trim its headcount by 2% after reporting a slump in full-year profit amid softer economic conditions and fleet challenges.

The numbers: The airline reported full-year net profit of NZD146 million ($204 million), a 65% slump from a year ago. Earnings before taxation also tumbled to NZD222 million, but was near the top end of its revised guidance of NZD190 million to NZD230 million. Operating revenue was higher at NZD6.75 billion and it will pay a final dividend of 1.5 NZ cents a share.

The context: New Zealand’s flagship carrier said the second half of the financial year proved increasingly challenging as the impact of operational and economic headwinds became more pronounced. It saw demand weaken both domestically and in the key North American market amid challenging economic conditions and ongoing cost-of-living pressures. Additional maintenance requirements also meant that six of its Airbus jets and three Boeing Dreamliners were out of service during the second half.

CEO Greg Foran the airline is focusing on discipline around its cost base through targeted adjustments, including a 2% reduction in its headcount of 11,700. The airline said it expects trading conditions to remain similar in the first half of FY25 and declined to provide guidance due to the ongoing uncertainty.