BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - Air New Zealand (AIZ.AX) issued an update on fiscal 2026 outlook, reflecting the significant impact of elevated and volatile global jet fuel prices. Air New Zealand now expects its second half fuel cost to be approximately NZ$980 million, compared with approximately NZ$740 million assumed at the 2026 interim result. This has driven a NZ$240 million headwind to the expected fiscal 2026 result, inclusive of hedging. Air New Zealand now expects a fiscal 2026 loss before tax in the range of NZ$340 million to NZ$390 million, based on current trading conditions and an assumed average jet fuel price of approximately US$145 per barrel for the second half, within which monthly prices have ranged between US$85 to US$200 per barrel.
The airline remains confident in the security of its jet fuel supply through to July 2026. The Management and the Board are not currently contemplating any capital transactions. Air New Zealand said it has made three targeted capacity consolidations to date, reducing overall Group capacity since the conflict by around 3 to 5 percent across its various networks. Booking momentum has moderated in recent weeks, the company noted. If fuel prices stay at the elevated levels, the airline expects to announce further capacity updates in the coming weeks.
Shares of Air New Zealand are trading at NZ$0.42, down 3.49%.
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