Air New Zealand has reported a 15% fall in earnings before taxation, to NZ$189 million ($111 million), for the year to June, and linked this to engine-related aircraft groundings and a softer domestic market. Operating revenue was flat year on year at NZ$6.76 billion, as passenger revenue fell 1.5% to NZ$5.9 billion. ASK capacity was reduced 3.7%, amid "fleet constraints arising from ongoing global engine maintenance delays", but RPK traffic contracted only 1.5%, with the result that load factor increased 1.9 percentage points to 83.4%. RASK increased 2.8%. On the cost side, fuel costs improved 12% but this was completely offset by NZ$235 million in "non-fuel operating cost inflation", including higher landing charges, labour costs and engineering materials. The airline also commented that it had up to six narrowbodies and five widebodies out of service throughout the year owing to maintenance requirements on its Pratt & Whitney geared turbofan and Rolls-Royce Trent 1000 engines that power its A320neo-family jets and 787s, respectively. "While the airline received NZ$129 million in compensation from engine manufacturers, it estimates earnings before taxation of NZ$189 million could have been approximately NZ$165 million higher had the fleet operated as intended," the airline adds. Net profit after tax fell 14% to NZ$126 million. "This is a solid result in a year where the airline faced real operational and economic pressure," states chair Therese Walsh. "It speaks to the capability of the team, the robustness of the business, and the financial discipline that Greg [Foran] has instilled during his time as CEO. While near-term challenges remain, our balance sheet is strong, and our strategy is clear." Foran, who will step down from his role in October, adds that the carrier is working closely with both Pratt and Rolls on further compensation but still faces engine issues over the coming years. "We are confident in the medium-term recovery path, but note the next year will likely be every bit as constrained as the last. Unfortunately, there are no quick fixes, and navigating the next two years will require the same focus and discipline we've shown to date," he adds. Foran stresses that while New Zealand's economy faces challenges, "we remain confident that demand will return, and that we're well placed to respond when it does". In its outlook, the airline says it expects first-half earnings before tax to be "similar or less than reported in the second half of the 2025 financial year (NZ$34 million)". In the year ahead, Air New Zealand expects to lift capacity by 2-4%, with the greatest contribution coming from its Tasman and Pacific Islands network as it conducts more widebody flying and operates additional A321neos which entered service in May and August.

Swedish carrier Braathens plans to phase out its Airbus fleet by 2027 to focus solely on providing ATR 72-600 ACMI services for European airlines. The carrier says it will gradually phase out its A319s and A320s as their leases expire, with all Airbus aircraft to be eliminated from its fleet by 2027. Fleets data shows that Braathens has four A319s and three A320s leased from a variety of lessors, including Macquarie AirFinance, Deucalion Aviation, Aero Capital Solutions, Carlyle Aviation Partners and DAE Capital. Braathens also has 17 in-service ATR 72-600s and two more on order with options on an additional four. The carrier operates ACMI services on behalf of SAS and Austrian alongside scheduled operations but has decided to become a pure ACMI provider using only turboprop aircraft. The decision was taken partly because agreements with tour operators are due to expire soon, says Braathens, but also because Airbus jets are “no longer considered optimally configured” to meet the needs of its customers. It adds that turboprops are more “energy and climate efficient” and are more suitable for routes on which larger aircraft are no longer profitable. “By adapting our operations, we will be able to offer ACMI solutions that are in demand while building a more streamlined and cost-effective business that has good potential for growth,” states Braathens chairman and owner Per Braathen. The carrier says it hopes to offer affected personnel the opportunity to remain with the company as it changes strategy.

LOT Polish Airlines has disclosed cabin configurations for the Airbus A220s scheduled to join its fleet from 2027. At the Paris air show in June, LOT ordered 20 A220-100s and 20 A220-300s, taking options to increase the order to 84 aircraft. This represented the carrier's first procurement from Airbus. The A220-100s will be equipped with 125 Recaro R2 economy seats and the -300s with 149, says the Star Alliance carrier. It previously disclosed its choice of Recaro seats for on-order A220s and Boeing 737 Max jets, and for cabin refurbishments of 787-8s. LOT notes that its A220s will feature Airbus's Airspace cabin, including new, more spacious overhead bins. The updated cabin design will enter service on newly delivered Air Canada A220s in 2026, Airbus said at the Aircraft Interiors Expo in April. With the A220's introduction, LOT plans to roll out in-flight wi-fi, it adds. Director of product development and customer experience Izabela Leszczynska states that the A220 will set a "new travel standard" at LOT. "With greater comfort, quieter cabins and modern tech features, every flight will feel even smoother," she predicts. The airline has 18 Max 8s in its fleet and another three on order, Cirium data shows. It also has six 737-800s and 47 Embraer E-Jets. Its long-haul fleet, meanwhile, comprises eight 787-8s, seven 787-9s, and a 777-200ER wet-leased from EuroAtlantic Airways.