Air New Zealand Posts FY26 Net Loss of $242 Million Amid Fuel Price Surge

Air New Zealand posted a net loss of $242 million for its FY26 financial year, according to recently released results. The airline's loss before taxation was $336 million, significantly worse than the earnings before taxation of $164 million seen in the prior year. However, this result is slightly better than guidance provided to the market in May 2026.

The company cited four main factors contributing to its financial struggles: rising jet fuel prices due to the Middle East conflict; ongoing Rolls-Royce Trent 1000 and Pratt & Whitney PW1100 engine issues; increased aviation system costs, which rose at more than twice the rate of inflation since 2019; and higher maintenance costs.

Air New Zealand's passenger revenue increased by 4.8% to $6.1 billion, while its capacity grew by 1.3%. Group Revenue per Available Seat Kilometre (RASK) rose by 3.4%, as the airline managed fares and capacity in response to elevated fuel prices.

The airline's Chief Executive Officer, Nikhil Ravishankar, stated that Air New Zealand had 'responded decisively' to prolonged engine constraints and high fuel costs, while continuing to improve customer experience and operational performance. He also highlighted the company's efforts to simplify its organisation and evolve its operating model.