Air New Zealand Expands Fleet with Additional boeing 777 Lease Amid 787 Delivery Delays

Air New Zealand has announced adjustments to its fleet strategy in response to ongoing delays in the delivery of its ordered Boeing 787 aircraft. The national carrier revealed during its half-yearly interim results presentation in Auckland on February 22, 2024, that it is facing significant setbacks with the arrival of two 787-9s and six 787-10s, now expected only by mid-2025. This delay alters the airline’s capital expenditure plans, originally set to include four 787s in the financial year 2026.

To mitigate the impact of these widebody aircraft delays, Air New Zealand has engaged in leasing agreements to ensure continued service expansion and operational efficiency. Chief Executive Officer Greg Foran disclosed the airline’s decision to enter a short-term wet lease with Wamos Air, alongside securing two additional dry-leased 777-300ERs. One of these 777s is already in service, with the second scheduled to commence in June. Both aircraft are on a three to four-year lease, with options for extension. Additionally, the airline is finalizing the lease for a third 777-300ER, expected to join the fleet later in the year on a four-year term.

The fleet challenges extend to Air New Zealand’s narrowbody operations, primarily due to maintenance requirements for Pratt & Whitney engines affecting its A320-200N and A321-200NX aircraft. CEO Foran highlighted the operational impact of having up to five A321-200NX aircraft out of service at any given time over the next 18 months, emphasizing the significance of securing short-term aircraft leases to counterbalance these challenges.

In light of these operational hurdles, Air New Zealand is also focusing on cabin refurbishments for its existing 787-9 fleet, with the first aircraft set for updates mid-year. Despite the obstacles, the airline remains committed to integrating newer, fuel-efficient aircraft like the A321-200NX into its fleet, acknowledging their importance for sustainable and efficient operations.

Air New Zealand reported a pre-tax earning of NZD185 million (USD114.12 million) for the six months ending December 31, 2023, with after-tax profits reaching NZD129 million (USD79.6 million). However, the airline anticipates a notable decrease in financial performance for the six months leading up to June 30, 2024, as it navigates through the current fleet and operational challenges.