Air New Zealand Warns of Worsening Aircraft Groundings in 2025

Air New Zealand (NZ, Auckland International) has warned that its aircraft groundings will worsen before improving, with up to 11 aircraft out of service in late 2025 due to engine maintenance issues.

During a February 20, 2025, investor call, CEO Greg Foran said the airline expects to have one-fifth of its fleet grounded, significantly impacting operations despite mitigation efforts.

“Our fleet situation will not improve in the near term,” Foran stated. “We expect six A321neo and five Boeing 787-9s to be grounded by late 2025, and the ripple effects are substantial.”

The airline previously had four A321-200NX and two B787-9s out of service due to Pratt & Whitney PW1100 and Rolls-Royce engine issues. That number increased to five A321neos and three B787-9s in early 2025.

Air New Zealand reported a NZD 106 million (USD 61 million) net profit for H2 2024, but network capacity dropped 4% due to aircraft groundings. The airline has suspended Seoul Incheon and Chicago O’Hare routes as a temporary measure.

Foran expressed frustration with OEM forecasts, particularly Rolls-Royce, stating that compensation payments of NZD 94 million (USD 54 million) fail to fully offset financial losses.

Meanwhile, deliveries of new Boeing 787s are delayed by several months, forcing Air New Zealand to lease additional Boeing 777-300ERs to cover capacity shortfalls. The B787-9 refurbishment program is also behind schedule, with the first aircraft still in Singapore for modifications.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com