New Zealand PM criticizes Air New Zealand after steep annual loss

Air New Zealand reported a net loss after tax of about NZD 242 million ($144 million) for the financial year, with a pre-tax loss of around NZD 336 million ($200 million), compared with pre-tax earnings of about NZD 164 million ($97 million) the previous year. The airline said the outcome was slightly better than the guidance range it had given the market in May 2026.

Prime Minister Christopher Luxon, who previously spent six years as Air New Zealand's chief executive, said the result was very poor even measured against other airlines globally. He said the company needed to explain what caused the loss and set out how it intends to improve, and urged management to act quickly.

Air New Zealand attributed the loss to a mix of factors, including higher jet fuel prices linked to conflict in the Middle East, increased aviation system costs, and unusually high maintenance expenses. The airline also pointed to continuing problems with Rolls-Royce Trent 1000 and Pratt & Whitney PW1100 engines, saying these issues alone cost an estimated $190 million through lost capacity, extra leasing and engine expenses, reduced fleet use and operational inefficiencies.

Chief executive Nikhil Ravishankar described the period as a very challenging year for aviation generally, saying the company's result reflects those wider industry pressures.

No response from Air New Zealand's board to Luxon's remarks was included in the available material.