Air New Zealand Cuts Domestic Flights Amid Economic Slowdown

Air New Zealand has announced further cuts to its domestic network, citing a slowdown in economic conditions and ongoing engine shortages affecting its Airbus A320 and A321 fleets. The airline, based in Auckland, has said it will reduce capacity across its domestic routes between February and June 2025, following the peak summer season in the Southern Hemisphere. These reductions are expected to result in a 2% drop in available seats on its domestic network.

While specific routes and schedules have not yet been confirmed, Air New Zealand has hinted that services connecting Wellington to regional hubs such as Rotorua, Gisborne, and Blenheim could be impacted by these cuts. The airline’s General Manager for its domestic division, Scott Carr, explained that the airline is responding to lower demand for domestic air travel, particularly from corporate and government customers, which has led to the need for adjustments in its flight offerings.

“Like other airlines in Aotearoa, our domestic business continues to be impacted by challenging conditions, including high operating costs and soft domestic demand,” said Carr. “As a result, we’ve made some changes to our services in the areas where we are seeing the most impact from less flying.” The airline also stated that affected customers would be rebooked on other flights, with approximately 6,000 customers expected to experience changes in their travel schedules.

This announcement follows earlier reductions in 2024, including cuts on three major domestic routes. In October, Air New Zealand revealed it would reduce frequency and capacity on the Queenstown-Christchurch, Dunedin-Wellington, and Christchurch-New Plymouth routes by operating smaller planes or flying fewer times daily. Additionally, flights between Invercargill and Wellington have been downgraded from 171-seat Airbus A320s to 68-seat ATR-72s, reducing seating capacity by 100 seats per flight.

The airline’s current challenges are compounded by an ongoing issue with its fleet of Airbus A320 aircraft, which is grounded due to shortages of Pratt & Whitney geared turbofan engines. This has left Air New Zealand with fewer available aircraft and reduced flexibility in its operations. The airline reported in November 2024 that up to six A320neo aircraft and four of its widebody Boeing 787s are out of service due to these engine-related issues, accounting for approximately 16% of its total fleet.

In a recent forecast for the first half of its 2025 financial year, Air New Zealand warned that these engine issues would contribute to a dip in its profits for 2025. Despite these challenges, the airline continues to work on rebalancing its capacity to meet customer needs while managing the impacts of the softening domestic market.

As Air New Zealand navigates these operational difficulties, the airline remains committed to minimizing disruptions for its passengers and ensuring continued service across its core domestic and international routes.

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