Air New Zealand Market Update on FY26 Outlook

Air New Zealand expects an FY26 loss before tax of NZ$340-NZ$390m due to a NZ$240m fuel price headwind and unexpected maintenance costs. In response, the airline has reduced capacity by 3-5% and accelerated a NZ$100m cost-saving program.

Key Takeaways

• 1.Air New Zealand has downgraded its FY26 outlook, now expecting a loss before tax of NZ$340-NZ$390m, primarily due to soaring fuel costs.
• 2.A significant NZ$240m headwind is expected from higher jet fuel costs and crack spreads, despite the airline being 85% hedged for 2H26.
• 3.Capacity has been reduced by 3-5% across the network in response to conflict-related disruptions and elevated fuel prices.

Table of Contents

• Air New Zealand provided a market update on FY26 outlook
• Price Target Risks and Methodology - Air New Zealand
• Disclosure Appendix
• Reg AC
• GS Factor Profile
• M&A Rank
• Quantum
• Disclosures
• Company-specific regulatory disclosures
• Distribution of ratings/investment banking relationships
• Price target and rating history chart(s)
• Target price history table(s)
• Regulatory disclosures

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