Air New Zealand has announced a decline in its underlying profits for the first half of its 2025 financial year, as the airline grapples with various challenges impacting its operations. Despite facing suppressed demand, economic factors, and engine issues affecting a significant portion of its mainline fleet, the Auckland-based carrier reported earnings before tax of NZ$155 million ($88 mn) for the six-month period ending on December 31, 2024. This figure represents a notable drop from the previous year's NZ$185 million ($105mn).

Chair of Air New Zealand, Dame Therese Walsh, remained optimistic despite the challenges, stating that the airline's robust balance sheet and financial discipline are key assets in navigating the current headwinds. The company plans to pay a dividend of NZ1.25c per share to shareholders, along with an upcoming share buy-back scheme of up to NZ$100 million ($57mn) to strengthen its financial position.

Greg Foran, the airline's Chief Executive, elaborated on the issues affecting the powerplants of its Airbus A320neo family and Boeing 787 Dreamliners. He highlighted the impact of ongoing engine maintenance requirements on the airline's fleet, leading to several aircraft groundings. Foran emphasized the significance of investing in modern, fuel-efficient aircraft, despite challenges that have resulted in millions of dollars in revenue loss.

Although Air New Zealand received compensation from engine manufacturers, Foran expressed that the airline still faced operational and economic losses due to the delays. Looking ahead, he acknowledged that 2025 would continue to be financially challenging as the airline expects a lower performance in the second half of the year. With a significant number of jets out of service simultaneously, the airline anticipates ongoing difficulties in the months to come.