• Earnings before taxation of $189 million
• Net profit after taxation of $126 million
• ASK capacity down 4% due to engine maintenance issues
• Final unimputed ordinary dividend of 1.25 cents per share declared
• $38 million of shares repurchased under the share buyback

Air New Zealand today announced earnings before taxation of $189 million for the 2025 financial year, compared with $222 million in the prior year. This result is at the upper end of the guidance range provided to the market in April. Net profit after taxation was $126 million. The result reflects resilience despite ongoing global engine maintenance challenges, significant cost inflation and a soft domestic market. Passenger revenue declined by two percent to $5.9 billion, driven by a four percent reduction in overall network capacity from engine availability constraints. Fuel costs improved 12 percent, or $208 million, reflecting a decline in average jet fuel prices and lower volumes of fuel consumption in line with constrained capacity. Non-fuel operating cost inflation of approximately $235 million, was driven primarily by higher landing charges, labour costs and engineering materials. This represents a year-on-year increase of around six percent, as system-wide aviation costs continue to rise faster than the New Zealand Consumer Price Index. The airline's Kia Mau transformation initiatives delivered approximately $100 million in benefits, driven by stronger ancillary revenue from improved product offerings, ongoing premium demand and digital self-service initiatives. Operational improvements also contributed, reducing disruption costs and lifting on-time performance. The Board has declared a final unimputed ordinary dividend of 1.25 cents per share, payable on 25 September 2025. During the year, Air New Zealand also returned $38 million to shareholders through the share buyback programme.

In the near-term, uncertainty around compensation discussions with engine manufacturers, combined with sharp recent increases in aviation sector levies and other charges, all set against the backdrop of subdued domestic demand, is expected to adversely impact the airline's financial performance in the first half. As such, the airline expects earnings before taxation for the first half of the 2026 financial year to be similar to or less than that reported in the second half of the 2025 financial year ($34 million).

While groundings related to engine availability constraints will continue into 2026, the airline notes signs of gradual improvement are beginning to emerge. More than half of the airline's existing Boeing 787 fleet is expected to be flying with fully modernised, premium-focused interiors in the year ahead, and the airline will also take delivery of its first two new Boeing 787s fitted with GE-powered engines, a major milestone in the long-term fleet renewal strategy. These aircraft, alongside an additional A321neo and ATR, will support increased capacity within New Zealand, across the Tasman and to North America, particularly during the peak summer period.