Air New Zealand says its domestic and Tasman bookings have softened and it is now forecasting a full year loss of up to $390 million. 
While it has pushed up fares, it is recovering the full impact of higher fuel costs over a short period would risk further demand softness. The airline says it is therefore ‘taking a measured approach’ to pricing and capacity.
It now expects fuel costs in the current six months to be about $980m, compared with around $740m it assumed just before war broke out in the Middle East. Overall capacity since the conflict started has been cut by around 35-5% across networks.
If fuel prices stay at these elevated levels, the airline expects to announce further capacity updates in the coming weeks, says NZ in an NZX announcement.
. . . Aircraft Availability
NZ has identified up to $100m savings in a strategy refresh initiated at the end of 2025, but accelerated in response to the higher fuel cost environment.
It says it will continue to review the timing of future aircraft deliveries to ensure fleet investment remains ‘aligned with demand, capital priorities and the operating environment’.
Fleet availability has improved significantly since Feb, with all existing 787 aircraft now expected to return to service by late Jun and all Airbus aircraft by 2027.
