Air New Zealand has provided a trading update, revealing a significant decline in the compensation it expects to receive from engine manufacturers in the second half of the 2025 financial year.
The airline said it is currently engaged in ongoing negotiations with the manufacturers, which have complicated the discussions.
Air New Zealand's interim results announcement in February highlighted the uncertainty surrounding the number of grounded aircraft and compensation levels, but it was unable to provide full-year earnings guidance at the time.
It now anticipates that 11 aircraft are grounded, despite securing additional leased engines.
The airline expects compensation of $35 million to $40m in the second half, compared to $94m in the first half.
This includes $20m of credit breakage for unused customer credits.
Air New Zealand estimates its ebit range for the 2025 financial year to be $150m to $190m.
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