Air New Zealand sees lower earnings for first half of 2025 as engine issues persist
Adds a line on average jet fuel price in paragraph 3, demand details in 8-9
Nov 25 (Reuters) -New Zealand's flagship carrier Air New Zealand AIR.NZ said on Monday it expects lower earnings for the first half of the 2025 financial year, as global engine maintenance delays caused aircraft availability issues.
The carrier expects its earnings before taxation in the range of NZ$120 million ($70.15 million)to NZ$160 million, as compared with NZ$185 million it had reported in the prior corresponding period.
Air New Zealand said its first-half forecast was made on the basis of assuming an average jet fuel price of US$91 per barrel for the first half.
The Auckland-based firm said last year's engine maintenance issues had dented its 2025 financial year prospects as well.
Earlier this year, the carrier had flagged that maintenance needs for its Pratt & Whitney engines led to six of its Airbus neo aircraft being inoperable at times.
On Monday, the company reiterated the ongoing issue. It said engine maintenance delays had caused its six Airbus neo aircraft and up to four Boeing 787 aircraft - 16% of the carrier's entire jet fleet - to be out of service across the first half of this financial year.
Air New Zealand said the issue is expected to persist until early 2026 but said it would continue to look at leasing further aircraft, among other measures, to improve capacity.
The airline also flagged that domestic travel demand has remained soft. Domestic travel accounts for 65% of the airline's passengers.
However, Air New Zealand said it had noted early signs of a recovery in corporate travel.
($1 = 1.7106 New Zealand dollars)
Reporting by Rajasik Mukherjee in Bengaluru
Editing by Ros Russell
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