Air New Zealand says engine grounding crisis largely resolved

Air New Zealand says its long-running engine reliability problems are now largely behind it, with most previously grounded aircraft back in service. The airline's final grounded Boeing 787-9, sidelined due to Rolls-Royce Trent 1000 engine issues, has returned to operation. Up to two Airbus A320neo family aircraft, affected by Pratt & Whitney PW1100G engine problems, will remain out of service through 2027.

At the peak of the crisis, the carrier had as many as five 787-9s grounded out of a fleet of 14, alongside up to six narrowbody A320neo family jets taken out of service.

Chief executive Nikhil Ravishakar said teams had worked closely with both engine manufacturers to restore aircraft to service faster than anticipated, with availability improving toward the end of the financial year. He added that while some risks and costs remain, the airline enters 2027 in a more stable fleet position. The company is also renegotiating compensation terms with Rolls-Royce and Pratt & Whitney over the disruption.

The engine troubles contributed to a wider financial setback. Air New Zealand posted a pre-tax loss of NZ$336 million ($200 million) for the year ended 30 June. It estimated the engine issues alone cost around NZ$190 million through lost capacity, additional leasing, and operational inefficiencies.

Looking ahead, the airline expects disruption to ease substantially in the current financial year. It still anticipates a further financial hit of NZ$70-90 million tied to continuing lease commitments and related costs linked to the engine problems.