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Air New Zealand Adjusts Earnings Forecast Amid Engine Compensation Challenges

Story Highlights
  • Air New Zealand faces reduced compensation from engine manufacturers due to grounded aircraft.
  • The airline forecasts earnings before tax between $150 million and $190 million for 2025.
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Air New Zealand Limited ( (ANZFF) ) has provided an announcement.

Air New Zealand has provided an update on its expected performance for the second half of the 2025 financial year, highlighting a significant reduction in anticipated compensation from engine manufacturers due to grounded aircraft. Despite securing additional engines to stabilize operations, the unpredictability of engine maintenance timeframes has led to ongoing negotiations for fair compensation. The airline expects second-half compensation to be much lower than the first half, impacting its earnings forecast, which is now estimated to be between $150 million and $190 million before taxation. The company is also adapting to operate with fewer aircraft and is monitoring potential impacts from recent US tariff announcements.

More about Air New Zealand Limited

Air New Zealand Limited operates within the aviation industry, primarily offering passenger and cargo air transport services. The company is listed on the New Zealand, Australian, and OTC stock exchanges, and focuses on providing air travel solutions with a fleet that includes Airbus neo and Boeing 787 Dreamliner aircraft.

YTD Price Performance: 14.84%

Average Trading Volume: 12,794

Technical Sentiment Signal: Strong Buy

Current Market Cap: $1.14B

Find detailed analytics on ANZFF stock on TipRanks’ Stock Analysis page.

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