New Zealand’s national airline announced Thursday it recorded substantial financial losses during the first six months of its fiscal year, citing ongoing aircraft engine maintenance problems and disappointing passenger numbers.
The carrier posted a pre-tax deficit of NZ$59 million (equivalent to $35.38 million USD) for the period ending December 31, a dramatic reversal from the NZ$144 million profit recorded during the same timeframe the previous year.
The financial results fell short of analyst expectations, with the actual loss significantly exceeding the projected NZ$21 million deficit predicted by Visible Alpha consensus forecasts.
Company officials attributed the poor performance to continuing challenges with aircraft engine servicing schedules, disappointing recovery in domestic travel patterns, and increased operational expenses. The financial strain prompted management to suspend dividend payments to shareholders.
