Air New Zealand forecasting lower profits in 2025 as engine issues plague fleet 

Air New Zealand has cited a range of ongoing aero engine issues as the root cause of a forecasted dip in profits for 2025. In guidance issued by the Auckland-based carrier for the first half of its 2025 financial year (which ends on December 31, 2024), the airline stated that up to six of its A320neo family aircraft as well as four of its widebody Boeing 787s are currently out of service due to ongoing engine issues. This number represents around 16% of the airline’s total fleet. 

According to reports, Air New Zealand is expecting profits before taxation in the first half of its 2025 financial year to land in the range of NZ$120 million ($70.15 million) to NZ$160 million. This figure represents a drop over a pre-tax profit of NZ$185 million for the first six months of its 2024 financial year. The airline adds that continued uncertainty makes it difficult to extrapolate a forecast for its full financial year. 

The airline has stated that demand for domestic travel within New Zealand remains soft, a market that accounts for 65% of the airline’s passengers. On a more positive note, corporate travel appears to be improving, although government-sponsored travel remains subdued said the carrier.  

Air New Zealand said that global engine maintenance delays are causing aircraft availability issues and a drop in available capacity. These issues are likely to continue impacting the company’s operations for some time to come, and “well into 2026. The carrier said it would continue to evaluate the leasing of additional aircraft, among other measures, to improve capacity in the coming months as the southern hemisphere summer peak travel season approaches.  

Phuong D. Nguyen / ShutterstockThe engine issues are affecting both the carrier’s A320 family short-haul fleet and its fleet of Boeing 787 Dreamliners, used on its long-haul routes. Earlier in 2024, the airline had stated that maintenance needs for its Pratt & Whitney geared-fan aero engines had led to up to six of its Airbus A320neo family aircraft being grounded at any given time. Meanwhile, checks on Rolls-Royce Trent 1000 engines meant that four of its Boeing 787s had been grounded at times.    

According to ch-aviation, the carrier operates a fleet of 17 older A320s plus 18 A320neo family planes, the latter of which are affected by engine issues. It also operates 10 Boeing 787-9s, four of which are listed as inactive, one of which is in long-term storage in Alice Springs Airport (ASP) in Australia. 

“Based on current assumptions and recent discussions with engine manufacturers, the airline does not expect these availability issues to ease until early 2026,” says Air New Zealand. “However, the airline continues to explore all options to improve capacity including further aircraft leases.” 

Yuan Mulyadi / ShutterstockSeveral other airlines are currently making cuts to their plan for 2025 amid ongoing engine issues. British Airways, for example, has been making a range of adjustments to its 2025 flying program, dropping some frequencies, axing other routes, and delaying the start of some new services.

Other operators of Trent 1000-powered aircraft such as Virgin Atlantic have also been affected. The carrier recently announced the postponement of flights to Tel Aviv in Israel and Accra in Ghana until late 2025 as disrupted supply chains are making it harder to source spare parts for the engines. 

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