Photo: Supplied / Air New Zealand

• Air NZ forecasts six-month pre-tax profit of between $120 million and $160 million compared to $186 million a year ago
• Approximately $60 million forecast from compensation, unused travel credits and rental gains
• Jet fleet lost 10 aircraft due to engine problems
• Mixed travel market: business travel improves and government spending declines

A shortage of planes and a mixed travel market are expected to reduce Air New Zealand’s half-year profit.

In a trading update ahead of an investor day presentation, the airline said it continued to be affected by a range of factors identified in the past.

It forecast six-month pre-tax profit to end-December of between $120 million and $160 million, up from $186 million a year earlier.

“Aircraft availability issues resulting from global engine maintenance delays resulted in six Airbus Neo and four Boeing 787 aircraft being taken out of service during the first half of this financial year,” the airline said in a statement.

Air New Zealand, like many other airlines, has had delays in scheduled maintenance of its aircraft engines.

“Based on current assumptions and recent discussions with engine manufacturers, the airline does not expect these availability issues to improve until early 2026.”

The result included about $10 million in unused travel credits, $30 million in compensation to engine manufacturers for maintenance delays and $20 million from the sale and leaseback of four Airbus planes.

The airline said it had seen some improvement in business travel demand, but government business remained subdued.

The travel market remained mixed, with Air New Zealand holding 80 per cent of the domestic travel market, where it has established itself. reduce the capacity and frequency of flights on certain routes.

He noted an improvement in business travel, but still subdued demand for government travel and less competition on North American routes.

Air New Zealand said it would likely make a full-year forecast based on February’s half-year results. Last year, its pre-tax profit was $222 million.

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