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Air New Zealand has revealed its projected earnings, forecasting a potential reduction in profits due to ongoing engine issues affecting its fleet. The airline announced that its earnings before tax may reach up to $112.3 million by the end of 2025. This update comes after 11 aircraft, part of the Airbus A320neo and Boeing 787 families, were grounded because of problems with Pratt & Whitney PW1100G and Rolls-Royce Trent 1000 engines.
In filings on the New Zealand Exchange and Australian Securities Exchange dated April 16, Air New Zealand, which initially could not provide a financial outlook, confirmed plans to release its full-year results on August 28. The airline reaffirmed its uncertainty about full-year guidance earlier this year due to challenges related to aircraft engine compensations from manufacturers Pratt & Whitney and Rolls-Royce.
The grounding is attributed to the removal and inspection of PW1100G engines and maintenance of Trent 1000 engines. This has left several aircraft inactive, including one A320neo, four A321neo, and four 787-9. Air New Zealand is awaiting the delivery of new 787-10 aircraft equipped with GE Aerospace GEnx engines.
