Air New Zealand expects to make a first half loss of up to $55 million amid weaker-than-expected passenger numbers and higher costs.

The national carrier's pre-tax loss was expected to land somewhere between $30m and $55m for the six months ending in December against an earlier forecast of a net profit of up to $34m.

The national carrier said it had hoped for an increase in domestic and US flights, which did not materialise, while ongoing problems with engine repairs would cost another $20m in addition to other costs.
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Air New Zealand said it was also negotiating with engine manufacturers regarding appropriate levels of compensation for unserviceable engines, as well as more accurate timeframes for engine returns. "The timing and quantum of compensation remains uncertain, and today's update does not include any material changes in expected compensation. "Between nine and eleven aircraft have remained grounded, at times, since the beginning of the 2026 financial year."
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