Air New Zealand faces a projected decline in profits for 2025, attributing the setback to persistent aero engine issues affecting a portion of its fleet. The airline based in Auckland disclosed that a number of its A320neo family aircraft and Boeing 787s are currently grounded due to ongoing engine troubles, representing about 16% of its total fleet. As a result, Air New Zealand anticipates profits before taxation for the first half of its 2025 financial year to range from NZ$120 million to NZ$160 million, a drop compared to the previous year's figures. The airline, however, foresees challenges in forecasting its full financial year due to prevailing uncertainties.

While domestic travel within New Zealand remains subdued, corporate travel is showing signs of improvement, though government-related travel continues to be sluggish. Global engine maintenance delays have led to aircraft availability issues, resulting in reduced capacity for the airline. Air New Zealand expects these challenges to persist well into 2026. To alleviate the impact, the carrier plans to explore options such as leasing additional aircraft as the summer peak travel season approaches.

The engine complications affect both the short-haul A320 fleet and the long-haul Boeing 787 Dreamliners operated by Air New Zealand. The airline had previously reported maintenance requirements on its Pratt & Whitney geared-fan aero engines and Rolls-Royce Trent 1000 engines, leading to grounded aircraft at various times. With 16 of its A320neo family planes and four Boeing 787s affected, the airline remains proactive in seeking solutions to enhance capacity.

Despite ongoing challenges, Air New Zealand remains optimistic about addressing the issues and does not expect significant improvements in availability until early 2026. Similarly, other airlines grappling with engine problems, like British Airways, are adjusting their flight programs for the year. Airlines using Trent 1000-powered aircraft, such as Virgin Atlantic, are also impacted, experiencing delays in services due to disrupted supply chains hindering spare parts procurement for their engines.

As airlines worldwide navigate through these hurdles, the industry faces shared uncertainties, emphasizing the need for strategic planning and adaptability in overcoming operational challenges.