Air New Zealand Limited (NS) Analysis

Overview

At Air New Zealand we provide world-class air passenger and cargo services to, from and within New Zealand. We operate one of the most comprehensive domestic and regional networks in the world, flying to 20 destinations across New Zealand, offering more than 400 flights every day.

Internationally, our strategic focus and competitive advantage lie within the Pacific Rim where our network reach extends from New Zealand into Australia, the Pacific Islands, Asia and North America. Alongside key global alliance partners, including United Airlines, Singapore Airlines, Cathay Pacific and Air China, we connect New Zealand to more than 600 destinations worldwide.

Our network serves more than 16 million passengers every year and is operated by a fleet of more than 100 aircraft and over 11,000 employees globally.

Our Airpoints™ loyalty programme is considered the premier loyalty programme in New Zealand and provides members with an easy and transparent currency - Airpoints Dollars™. Members earn points by travelling with the airline and spending at retail partners. With over four and a half million members, Airpoints provides us with unique data points that help us understand our customers and their travel needs.

Our simplified and modern fleet consists of fuel-efficient aircraft, across a small number of aircraft types, which provides the airline with a competitive cost structure and greater operational efficiencies.

We maintain a disciplined approach to capital allocation supported by our Capital Management Framework, which enables us to balance capital allocation decisions between re-investment in the business, our sustainability ambitions and returns to shareholders over the long-term.

We have a credit rating of Baa1 from Moody's, with a stable outlook, making us one of the top investment-grade rated airlines in the world.

Find out more about Air New Zealand

• Board

• Executive management team

• Corporate governance

• Board committees and charters

• Corporate and social responsibility policies

• Investor centre

Performance

The following information was extracted from Air New Zealand's Full Year results, released on 28 August 2025:

Financial summary

•Earnings before taxation of $189 million

•Net profit after taxation of $126 million

•ASK capacity down 4 percent, with up to 6 narrowbody and 5 widebody jets grounded due to additional global engine maintenance requirements

•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. This pricing pressure is expected to persist.

The airline 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.

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 such as live chat and automated passenger rebooking. Operational improvements also contributed, reducing disruption costs and lifting on-time performance by six percentage points in the second half. Together these benefits helped partially offset inflation while laying foundations for stronger long-term financial performance.

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