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The past week was a whirlwind for the aviation industry in Oceania. Cyclone Megan wreaked havoc on flights across northern Australia and the Pacific, while Qantas and Air New Zealand were busy making significant moves in the competitive landscape. Air New Zealand’s CEO Greg Foran announced his resignation amidst operational challenges, and LATAM expanded its codeshare agreement with Qantas, further strengthening its position in the region.
Meanwhile, Fiji Airways continues its recovery from disruptions, and airlines across the region are working hard to restore services following the storm’s impact. Here’s a closer look at the latest developments in Oceania’s aviation sector.
Cyclone Megan Causes Major Flight Disruptions in Australia and the Pacific
Cyclone Megan, a powerful storm system, made its way through northern Australia and parts of the Pacific, causing widespread flight disruptions in the region. Airports in Queensland, including Cairns and Townsville, were heavily impacted by the cyclone, forcing multiple airlines to delay or cancel flights.
Unsurprisingly, Jetstar and Qantas were the most affected airlines as Megan battered the coast. Services to smaller regional airports like Hamilton Island and Mackay saw the highest levels of disruption. Virgin Australia also had to halt services in affected regions. While airports in northern Queensland began reopening after the storm had passed, recovery efforts continued throughout the week.
In the Pacific, flights to and from Fiji, Vanuatu, and New Caledonia experienced turbulence as the cyclone led to temporary airport closures and flight cancellations. Fiji Airways had to cancel flights on several routes, including those to Sydney and Brisbane, while Air Vanuatu experienced similar disruptions, especially on its international services.
Airlines are still working to manage the backlog of passengers as operations gradually return to normal.
Air New Zealand Faces Leadership Transition Amid Operational Challenges
Greg Foran, the CEO of Air New Zealand, announced his resignation effective October 2025. Foran, who previously held an executive position at Walmart, took over Air New Zealand during the tumultuous COVID-19 pandemic. His tenure was marked by navigating global supply chain disruptions, engine maintenance issues, and heightened competition from Australian carriers.
Under his leadership, the airline undertook a retrofit program for its 787 fleet to enhance passenger comfort and operational efficiency. Chair Dame Therese Walsh praised Foran’s contributions and stated that a global search for his successor is underway.
In February 2025, Air New Zealand reported an 18% decline in first-half profits. This decline was primarily attributed to supply chain delays affecting engine manufacturers such as Pratt & Whitney and Rolls-Royce, leading to grounded aircraft and reduced flying capacity. Moreover, the Kiwi carrier experienced a 3% drop in passenger numbers, exacerbating financial pressures. Despite receiving NZ$94 million in compensation, the airline acknowledged that this did not fully offset its operational and economic challenges.
LATAM and Qantas Expand Codeshare Agreement
In late February 2025, LATAM Airlines expanded its existing codeshare partnership with Qantas, introducing additional routes within Australia and extending to one international destination. This expansion aims to provide passengers with enhanced connectivity and more flexible travel options.
Newly Introduced Codeshare Routes, as reported by AeroRoutes:
- Melbourne – Alice Springs
- Melbourne – Cairns
- Melbourne – Darwin
- Melbourne – Devonport
- Melbourne – Launceston
- Melbourne – Mildura
- Sydney – Alice Springs
- Sydney – Darwin
- Melbourne – Singapore
These additions significantly enhance LATAM’s reach within Australia, allowing passengers to book flights under LATAM’s code while traveling on Qantas-operated flights. The addition of the Melbourne–Singapore route also improves international connectivity, offering travelers more options for long-haul travel.
Moreover, the expanded codeshare agreement benefits travelers by simplifying booking processes and providing more direct flight options. Passengers can now plan trips more efficiently, enjoying streamlined connections between major cities in Australia, Singapore, and beyond. This development is expected to stimulate tourism and business travel, fostering economic growth in the regions served.
Conclusion
As the region recovers from Cyclone Megan’s disruption, airlines in Oceania continue to adapt to operational challenges and seek new growth opportunities. With leadership changes at Air New Zealand and strategic moves like LATAM’s expanded codeshare with Qantas, the region’s aviation sector remains dynamic and resilient.
As recovery efforts continue and new partnerships emerge, Oceania’s aviation industry is poised for a year of adaptation and expansion, with challenges and opportunities shaping the path forward.
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