• Earnings before taxation for 1H 2026 expected to be $30-55 million loss
• Revenue uplift of 2-3% not materialised, impacting earnings by $50 million
• Engine lease costs $20 million higher, CORSIA obligations $10 million higher

Air New Zealand has provided an update on expected earnings performance for the first half of the 2026 financial year. The airline had anticipated a 2% to 3% uplift in revenue across Domestic and US-bound bookings, but this has not materialised to date and is not yet evident in the current forward booking profile, impacting earnings by approximately $50 million for the half. The local economy remains subdued, with ongoing softness across business, government and leisure segments. Engine lease costs for the first half are now expected to be approximately $20 million higher, due to the recognition of end-of-lease obligations on two short-term aircraft leases not previously included in the outlook. These costs are non-cash in the period and are not covered by existing compensation agreements. The airline's financial obligations under the mandatory Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) have also increased by around $10 million since the August outlook, which will result in increased fuel costs. Air New Zealand continues to prioritise medium to long-term growth, carrying the cost of additional fleet, a full workforce, and the infrastructure necessary to support recovery as aircraft availability improves. The airline is driving further cost-saving and efficiency initiatives to mitigate these pressures, manage aviation system cost inflation and maintain balance sheet strength.

Air New Zealand now expects a loss before taxation for the first half of the 2026 financial year in the range of $30 million to $55 million, assuming an average jet fuel price of US$85 per barrel for the period.

The airline cautions against extrapolating first-half guidance across the full year, noting that additional capacity growth is planned for the second half. As a result, traditional comparisons between first- and second-half performance may be less indicative of full-year trends for the 2026 financial year.