Air New Zealand Reports FY 2025 Net Profit of $126 Million

Air New Zealand has reported a fiscal year 2025 (FY 2025) net profit of $126 million on a 2.0 percent year-over-year decline in passenger revenue to $5.9 billion.  The revenue decline was primarily attributable to a reduction in capacity from engine availability issues.

Air New Zealand Boeing 787 Dreamliner - Courtesy Air New Zealand

On Thursday (August 28, 2025), Air New Zealand reported their full fiscal year financial results for the period ending June 30, 2025.  The carrier reported a full-year net profit of $128 million on a 2.0 percent decrease in passenger revenue to $5.9 billion, driven by a four percent reduction in overall network capacity from engine availability constraints.  Air New Zealand is working closely with both Rolls-Royce and Pratt & Whitney on compensation arrangements, and to secure a more reliable picture of when engines will return to service. 

In Thursday’s announcement, Air New Zealand’s Chairman, Dame Therese Walsh, said,

“This is a solid result in a year where the airline faced real operational and economic pressure.  It speaks to the capability of the team, the robustness of the business, and the financial discipline that Greg has instilled during his time as CEO.  While near-term challenges remain, our balance sheet is strong, and our strategy is clear.

“Based on the result announced today, and reflecting that confidence, the Board has declared a final unimputed ordinary dividend of 1.25 cents per share, payable on 25 September 2025 to shareholders on record as at 12 September 2025.  During the year, Air New Zealand was also pleased to return $38 million to shareholders through the share buyback programme announced in February.

Dame Therese Walsh also took the opportunity to thank Air New Zealand’s CEO, Greg Foran, who will step down later this year.

“Greg has led the business through an extraordinary period.  He’s been clear, considered, and focussed, and leaves Air New Zealand in a position of real strength. On behalf of the Board, I want to thank him for his leadership.”

Speaking on the engine availability constraints facing the carrier during FY 2025, Air New Zealand’s CEO, Greg Foran said in part,

“We acted early and decisively, securing additional engines and aircraft, and optimising our schedule to keep customers moving.  While this came at a significant cost, it was the right decision to deliver for our customers and maintain network stability.  We are confident in the medium-term recovery path but note the next year will likely be every bit as constrained as the last.  Unfortunately, there are no quick fixes, and navigating the next two years will require the same focus and discipline we've shown to date….”

During FY 2025, Air New Zealand maintained a disciplined focus on cost control, with targeted actions including renegotiating supplier contracts, reprioritizing spending, and further embedding procurement discipline across the business.  Their ‘Kia Mau’ transformation initiatives delivered approximately $100 million in benefits, driven by stronger ancillary revenue from improved product offerings, increased premium demand and digital self-service initiatives such as live chat and automated passenger rebooking. 

Air New Zealand also returned four fully retrofitted Boeing 787-9 Dreamliners to service during FY 2025, and also unveiled a new uniform range, and announced plans for a new international lounge at Auckland Airport.  The company also made investments in infrastructure and digital capability, with a new engineering hangar scheduled to open later in 2025, the Christchurch Engine Centre expansion progressing well, and around 3,000 staff equipped with AI tools to improve service, speed, and efficiency.

In 2026, over half of the airline's existing Boeing 787 fleet is expected to be flying with fully modernized, premium interiors.  Additionally, Air New Zealand will take delivery of their first two new Boeing 787s fitted with GE-powered engines.  These aircraft, alongside an additional A321neo and ATR, will support increased capacity within New Zealand, across the Tasman and to North America.

Established in 1940, Air New Zealand first took to the skies between Auckland and Sydney with a Short S30 flying boat.  Known for their warm Kiwi hospitality, the carrier currently operates a fleet ranging from Boeing 787-9 Dreamliners and Airbus A320 Family jets to ATR and Q300 turboprop aircraft.  The carrier’s modern and fuel-efficient fleet has an average age of 9.9 years.  In 2024, Air New Zealand carried more than 16 million passengers.  The carrier serves 20 different regions around New Zealand, and offers direct international service to major cities across Australia, Asia, the Pacific Islands and the U.S.  Additionally, through strong relationships with alliance partners, the airline offers hundreds more destinations.

Source: Air New Zealand

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