Air New Zealand has launched a full strategy review to steer the airline back to profitability after reporting a $40 million net loss for HY1 of FY26. The carrier continues to suffer from engine-related issues that force it to ground aircraft, while the domestic travel market is not recovering as expected due to high inflation.
ANZ confirmed the review during today’s earnings presentation, but new CEO Nikhil Ravishankar has been tasked with the job by the Supervisory Board since he took over from Greg Foran
in October. “With the support of the Board, we are undertaking a comprehensive review of all aspects of the business, with the objective of returning the airline to sustained profitability through enhanced operational performance, growth and further cost transformation initiatives.”
Air New Zealand suffers from multiple problems. One is operational and has to do with the persistent engine issues. For a few years, it has suffered durability issues with its Rolls-Royce Trent 1000-powered Boeing 787-9s, resulting in aircraft on ground as their engine were fixed. While Rolls-Royce has rolled out improvement packages that should significantly improve time on wing, progress has been slow at ANZ. This HY2, up to four 787-9s will be unavailable. Up to three Airbus A321neos will be grounded until July because of durability issues with the Pratt & Whitney Geared Turbofans, which require repairs and more spare engines. The airline was compensated $55 million by the engine makers, but the engine issues had an impact of $135 to $155 million. Compensation for HY2 is yet to be agreed.
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