Air New Zealand's earnings forecast for first half of 2025 lower due to engine issues

From Investing.com: 2024-11-24 19:25:38

Air New Zealand’s earnings forecast for the first half of financial year 2025 is lower due to global engine maintenance delays affecting aircraft availability, with expected pre-tax earnings of NZ$120-160 million compared to NZ$185 million last year. Shares rose 2.8% to NZ$0.550 on the news.

The airline’s ongoing engine maintenance issues have impacted its 2025 prospects, with six Airbus neo aircraft and up to four Boeing 787 aircraft out of service due to delays. This has led to concerns from financial advisers like Tom McBride, who noted that engine availability issues may persist until 2026.

To address capacity challenges, Air New Zealand plans to lease additional aircraft and implement other measures. The airline also highlighted soft domestic travel demand, which accounts for 65% of its passengers. The company continues to navigate the impact of engine maintenance delays on its operations.



Read more at Investing.com: Air New Zealand sees lower earnings for first half of 2025 as engine issues persist By Reuters