Air New Zealand warns of four-year-high loss as jet fuel costs surge

Air New Zealand forecast its largest annual pre-tax loss in four years on May 14, 2026, citing a spike in jet fuel prices driven by the Middle East conflict, alongside weak demand and fleet constraints. The carrier expects an annual pre-tax loss of NZ$340 million to NZ$390 million ($201.6 million to $231.3 million), assuming an average jet fuel price of $145 a barrel in the second half. It reported a NZ$189 million profit a year earlier. Air New Zealand expects to consume about 4.1 million barrels from January to June 2026, lifting its second-half fuel bill to NZ$980 million, 32% above its February forecast. Its annual fuel bill is now projected at NZ$1.75 billion, up from NZ$1.48 billion in 2025. The airline said elevated fuel prices could prompt further capacity updates in coming weeks. It has already cut group capacity three times and raised fares, while domestic and trans-Tasman demand remains soft.