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Air New Zealand (AIR) investor relations material
Air New Zealand H1 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Reported a net loss after tax of NZD 40 million and a loss before tax of NZD 59 million for the half, reflecting ongoing operational and cost challenges, including fleet constraints and slower domestic demand recovery.
Passenger revenue grew 3.6% year-over-year to NZD 3.0 billion, but flat network growth and inflationary pressures hurt profitability.
Up to eight aircraft were grounded at times due to global engine maintenance disruptions, constraining capacity to about 90% of pre-COVID levels and resulting in NZD 90 million net earnings impact after NZD 55 million compensation.
No interim dividend declared, consistent with capital management policy and focus on balance sheet resilience.
Financial highlights
Operating revenue rose 1.2% year-over-year to NZD 3.4 billion, but operating cash flow fell 50% to NZD 213 million.
Non-fuel cost inflation reached NZD 75 million (3.5%) in the half, mainly from mandated levies, engineering, and landing charges.
Reported CASK increased 7.7% (5.7% underlying), with inefficiencies from fleet constraints and supplier cost inflation.
Liquidity at period end was NZD 1.3 billion, within target range; net debt-to-EBITDA at 2.6x, slightly above target.
Outlook and guidance
Second-half earnings expected to be in line with or modestly below the first half, subject to uncertainties in engine return, compensation, and input costs.
Full-year non-fuel cost inflation forecast at NZD 150–175 million, with significant maintenance headwinds.
Capacity growth of 3–4% planned for the second half, conditional on improved engine reliability and new aircraft deliveries.
Compensation for engine issues in the second half remains under negotiation and could materially impact results.
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