Air New Zealand FY revenue slightly beats estimates as it navigated through higher fuel prices

Air New Zealand

27/08/2026 21:42

Overview
New Zealand airline's FY 2026 revenue rose 3.9%, slightly beating analyst expectations
Company posted net loss of NZ$242 mln, citing higher fuel and maintenance costs
No final dividend declared as airline focuses on rebuilding financial resilience

Outlook
Air New Zealand withholds FY27 earnings guidance as jet fuel sits around US$150/bbl amid Middle East conflict uncertainty
Company forecasts ~$2.7 bln in aircraft and associated-asset investment through FY31
Engine availability issues are expected to have a $70 mln to $90 mln financial impact in FY27

Result Drivers
JET FUEL PRICES - Co said elevated fuel prices from Middle East conflict increased costs and impacted profitability
ENGINE AVAILABILITY ISSUES - Ongoing Rolls-Royce and Pratt & Whitney engine problems led to lost capacity and higher lease and maintenance costs
MAINTENANCE COSTS - Peak aircraft maintenance year drove higher lifecycle and leased engine maintenance expenses
AVIATION SYSTEM COSTS - Higher airport, navigation and security charges added about NZ$83 mln to costs, rising more than twice as fast as inflation since 2019

Company press release: ID:nNZS7Cva

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
FY Pretax Loss
Beat
NZ$336 mln
NZ$348.41 mln (6 Analysts)
FY Revenue
Beat
NZ$7 bln
NZ$6.90 bln (7 Analysts)

Analyst Coverage
The current average analyst rating on the shares is "sell" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and 4 "sell" or "strong sell"
The average consensus recommendation for the airlines peer group is "buy."
Wall Street's median 12-month price target for Air New Zealand Ltd is NZ$0.40, about 2.6% above its August 27 closing price of NZ$0.39

Reuters Recommended Reads
Aug 27 - Qantas upbeat on revenue, brings forward A380 exit as profit falls
Aug 25 - United CEO expects gradual fare increases in 2027 as demand stays strong
Aug 25 - Kenya Airways first-half pretax loss $125 million 

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)