Key points
- Loss before taxation of $336 million, better than expected
- Total revenue of $7.0 billion, up 3.9% on 2025
- Ongoing engine issues and high fuel prices significantly impacted results
- No final dividend declared
- Positive outlook on operational performance and customer satisfaction
Full summary
Air New Zealand announced a loss before taxation of $336 million for the 2026 financial year, compared to earnings before taxation of $164 million in the prior year. The result was primarily driven by increased fuel prices due to the Middle East conflict, ongoing engine availability issues, higher lifecycle maintenance costs, and rising aviation system costs. Total revenue increased by 3.9% to $7.0 billion, while passenger revenue rose by 4.8% to $6.1 billion. The airline also reported an operating cash flow of $819 million. Despite the challenges, Air New Zealand improved its on-time performance and customer satisfaction, with on-time performance reaching 84.0% in the second half of the year.
Outlook
The airline expects operational performance to continue improving in the 2027 financial year, despite elevated fuel prices. Disruption from engine availability is expected to reduce, and aircraft maintenance costs are anticipated to decrease.