Air New Zealand’s underlying profits for the first half of its 2025 financial year fell as the airline continued to grapple with suppressed demand, other economic factors, and engine issues affecting a significant proportion of its mainline fleet.

The Auckland-based carrier saw its earnings before tax fall to NZ$155 million ($88 mn) for the six months until December 31, 2024. This figure represents a significant drop from NZ$185 million ($105mn) reported in the same year previously. The airline’s net profit also declined by 22% from NZ$129 million ($73mn) to NZ$106 million ($60mn). The underlying profit was near the top end of its NZ$120 million to NZ$160 million ($68mn to $91mn) guidance range given at the start of the fiscal period.

Despite the figures, the airline is remaining positive amid a swathe of ongoing challenges. The airline’s Chair, Dame Therese Walsh said the figures represented a strong result when considering the headwinds the airline had been navigating for almost a year. “Air New Zealand’s strong balance sheet, liquidity, and financial discipline provide us with the flexibility to successfully manage the short-term challenges we face, while also continuing to invest in our future and return capital to our shareholders,” Walsh commented.

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