Air New Zealand Limited ( (ANZFF) ) has released its Q4 earnings. Here is a breakdown of the information Air New Zealand Limited presented to its investors.
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Air New Zealand Limited, a prominent airline in the aviation industry, provides world-class air passenger and cargo services to, from, and within New Zealand, with a focus on the Pacific Rim. In its latest earnings report for the financial year ending June 2025, Air New Zealand reported a net profit after taxation of $126 million, a 14% decrease from the previous year, and earnings before taxation of $189 million, down from $222 million. The company faced significant challenges, including global supply chain constraints and increased engine maintenance requirements, which impacted fleet availability and financial performance. Despite these challenges, Air New Zealand declared dividends of $83 million and maintained a strong liquidity position of $1.7 billion, exceeding its target range.
Key financial performance metrics highlighted in the report include a $6.8 billion operating revenue, comparable to the previous year, and a $235 million increase in non-fuel operating costs due to inflation. The airline’s net debt to EBITDA ratio stood at 1.1x, below the target range of 1.5x to 2.5x, reflecting disciplined financial management. The report also noted a $165 million adverse impact on earnings due to aircraft availability challenges, net of compensation received from engine manufacturers. Air New Zealand’s strategic initiatives focused on enhancing customer experience, digital transformation, and sustainability, with investments in new engineering facilities and fleet upgrades.
Looking ahead, Air New Zealand’s management remains cautiously optimistic, anticipating continued engine maintenance-related challenges through the 2026 financial year. However, signs of improvement in global maintenance capacity are emerging, with expectations for pressure to ease by the end of 2027. The airline plans to take delivery of new aircraft and expand its network, including reinstating jet services between Hamilton and Christchurch and launching a new seasonal route from Christchurch to Adelaide. Air New Zealand’s commitment to sustainability is underscored by its 2030 Emissions Guidance, aiming for a 20 to 25 percent reduction in net emissions from jet fuel by 2030.