Air New Zealand Faces Challenges with Engine Shortages and Economic Conditions
Air New Zealand is bracing for further adjustments to its domestic flight schedule in response to what the airline describes as challenging economic conditions. The airline is grappling with engine shortages that have impacted its short-haul Airbus A320 and A321 fleets, predominantly used for domestic flights. While specific routes slated for reductions have not been officially confirmed, it is anticipated that services between Wellington and regional destinations such as Rotorua, Gisborne, and Blenheim may be affected.

The airline foresees a decrease of approximately 2% in available seats across its domestic network between February and June 2025, following the conclusion of the peak summer season. Air New Zealand's General Manager for the domestic division, Scott Carr, highlighted the impact of diminished domestic air travel demand and operational challenges faced by airlines in the region. Carr emphasized the company's commitment to accommodating affected passengers by assisting with travel re-bookings as necessary.

This recent development comes on the heels of prior capacity reductions on several domestic routes announced earlier in 2024. In response to ongoing challenges, Air New Zealand has adjusted frequencies and capacities on routes like Queenstown to Christchurch, Dunedin to Wellington, and Christchurch to New Plymouth. Moreover, the airline has downsized equipment on flights between Invercargill and Wellington, transitioning from 171-seat Airbus A320s to 68-seat ATR-72s, resulting in a reduction of 100 available seats per flight.

Compounding Air New Zealand's operational hurdles is the grounding of a portion of its narrowbody Airbus A320 fleet, awaiting necessary parts and engine inspections. This setback has constrained the airline's aircraft availability and operational flexibility. The carrier previously announced that ongoing aero engine issues were expected to impact profitability for the fiscal year 2025. Engine-related problems have led to the grounding of six A320neo family aircraft and four Boeing 787s, accounting for approximately 16% of the airline's total fleet.

As the airline navigates these challenges, it remains committed to addressing the evolving needs of passengers and the fluctuating market dynamics. Stay tuned for further updates on how Air New Zealand continues to adapt and respond to the changing landscape of domestic air travel in New Zealand.