Air New Zealand posted a NZ$336 million pre-tax loss and a NZ$242 million net loss for FY2026 as elevated fuel, engine and maintenance costs eroded revenue growth, prompting Prime Minister Christopher Luxon to brand the result “very poor”. The flag carrier reported operating revenue of about NZ$7.0 billion, up 3.9% year on year, but did not declare a final dividend and was unable to provide FY2027 earnings guidance.
Fuel costs came in sharply above expectations, driven in part by Middle East conflict, while engine availability problems cut profitability through lost capacity, higher lease and engine costs, lower fleet utilisation and operating inefficiencies. Rising aviation system charges and maintenance spending also weighed on the result. Luxon’s criticism, delivered in New Zealand on the same day as the earnings release, increases political pressure on the partially government-owned airline as it works to stabilise performance.