Air New Zealand cuts 5% of flights as job losses loom
New Zealand's flag carrier Air New Zealand will cancel 5% of its domestic and regional flights, citing the impact of jet fuel costs. The airline says it will reassess capacity once fuel pressures ease.
Air New Zealand has said it will cancel 5% of its domestic and Pacific regional flights over the next three months. The decision follows persistently high jet fuel costs after the Iran war. The airline said its capacity review could also lead to staff reductions.
The carrier recently flagged an expected loss of nearly NZ$400 million for the 2026 financial year. Consolidation has hit smaller regional routes hardest. Market-share routes such as Wellington-Christchurch and Auckland-Queenstown are largely protected, while some Pacific island services will be trimmed.
Union representatives said the move could cost hundreds of jobs. Executives said cabin crew and ground-handling roles would first be reduced through voluntary redundancy offers. Investors are watching the stock's reaction in Auckland trading.
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