Air New Zealand is confronting significant operational challenges due to persistent engine maintenance issues and delays in aircraft deliveries, leading to a notable decline in profits.
The airline reported an 18% drop in net profit for the first half of fiscal 2025, totaling NZ$106 million ($60.43 million). This downturn is primarily attributed to global engine maintenance problems affecting up to 11 aircraft in its fleet, including both Airbus neo and Boeing 787 Dreamliner models. The engines, supplied by Pratt & Whitney and Rolls-Royce, have necessitated groundings and disrupted operations.
In response to these challenges, Air New Zealand has announced a NZ$100 million share buyback and declared an interim ordinary dividend, signaling confidence in its financial stability despite the setbacks.
The airline is also grappling with delays in the delivery of new Boeing 787 aircraft, which were expected to bolster its long-haul capabilities. These postponements have compounded the operational difficulties, forcing the carrier to adjust its flight schedules and temporarily suspend certain routes, including the Auckland to Seoul service.
Air New Zealand’s CEO, Greg Foran, acknowledged the ongoing issues, stating that the situation may worsen before it improves. The airline is seeking solutions, such as leasing additional aircraft and optimizing its network, to mitigate the impact on passengers and maintain service quality.
Despite these hurdles, demand remains robust on international routes, offering a silver lining as the airline navigates through this turbulent period.
