Morningstar sees near-term headwinds for Air New Zealand
** Analysts at Morningstar forecast Air New Zealand's AIR.NZ fiscal 2025 profit before tax to fall 42% to NZ$129 mln($80.70 mln) from near-term headwinds
** Brokerage maintains fair value estimate of NZ$0.80/shr for the airline
** Air NZ reported a 61% drop in annual profit on Thursday, warning of potential impacts from sticky inflation, engine-related maintenance issues, and stiff U.S. competition
** We expect roughly flat capacity in fiscal 2025 as maintenance issues continue to constrain aircraft availability, particularly in first half - Morningstar
** Brokerage sees international recovery to be more gradual for Air NZ
** Analysts at Morningstar also expect some relief in fuel costs for the airline from fiscal 2026
** Stock had fallen 12.6% YTD, as of last close
($1 = 1.5985 New Zealand dollars)
Reporting by Shivangi Lahiri in Bengaluru
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