Air New Zealand has reported pre-tax earnings of $189m for its latest financial year.
While at the upper end of company targets, the total profit was still down from $222m in the previous 12 months. Net profit after tax amounted to $126 for the latest year.
The airline said the result reflects resilience despite ongoing global engine maintenance challenges, significant cost inflation and a soft domestic market.
Passenger revenue declined by 2% to $5.9bn, driven by a 4% reduction in overall network capacity from engine availability constraints.
Fuel costs improved 12%, or $208m, 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 $235m, was driven primarily by higher landing charges, labour costs and engineering materials. This represents a year-on-year increase of around 6%, as system-wide aviation costs continue to rise faster than the New Zealand Consumer Price Index. This pricing pressure is expected to persist.
Nevertheless, the airline said it maintained a disciplined focus on cost control. Targeted actions included renegotiating supplier contracts, reprioritising investment spend and further embedding procurement discipline across the business to deliver greater value.
Air New Zealand Chair Dame Therese Walsh said the result reflected the underlying strength of the business and the discipline with which it has been run.
“This is a solid result in a year where the airline faced real operational and economic pressure. It speaks to the capability of the team, the robustness of the business, and the financial discipline that [outgoing CEO] Greg [Foran] has instilled during his time as CEO. While near-term challenges remain, our balance sheet is strong, and our strategy is clear.
“Based on the result announced today, and reflecting that confidence, the Board has declared a final unimputed ordinary dividend of 1.25 cents per share, payable on 25 September 2025 to shareholders on record as at 12 September 2025. During the year, Air New Zealand was also pleased to return $38m to shareholders through the share buyback programme announced in February.”
