Air New Zealand has delivered impressive financial results, posting a pre-tax profit of $155 million in the first half of 2025. This figure reaches the upper range of its market forecast, highlighting the airline’s resilience despite ongoing operational disruptions. The net profit after tax stands at $106 million, demonstrating strong financial control in a challenging environment.

Although the airline reduced network capacity by 4%, it announced a $100 million share buyback program. This move reinforces confidence in its long-term vision. Additionally, shareholders will receive a dividend of 1.25 cents per share, payable in March 2025.

Operational challenges persist as global engine maintenance delays continue to disrupt Air New Zealand’s fleet. Up to eight aircraft, including narrowbody and widebody jets, remain grounded, causing a 5% decline in passenger revenue. The airline received $94 million in compensation from engine manufacturers, but financial losses still weigh heavily. It estimates profits could have been $40 million higher if all aircraft had been operational.

To offset disruptions, the airline implemented cost-control measures while investing in modern, fuel-efficient aircraft. Jet fuel expenses dropped 15% due to lower global prices and reduced capacity. However, rising costs for labor, engineering materials, and landing fees added a $100 million burden.

Looking ahead, the airline faces even more challenges in the second half of 2025. With up to 11 aircraft expected to be grounded, capacity constraints will intensify. However, Air New Zealand remains focused on innovation. By early 2026, over half of its Boeing 787 Dreamliners will feature upgraded cabins. The airline is also enhancing operations with leased engines, digital bag tags, and onboard domestic Wi-Fi trials.

Despite uncertainties surrounding aircraft maintenance, Air New Zealand remains committed to financial stability and operational excellence. The airline has not provided a full-year financial forecast but anticipates a weaker performance in the second half due to capacity limitations.

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