Earnings call transcript: Air New Zealand tops Q2 2026 EPS forecast

Air New Zealand reported Q2 2026 earnings of $6.60 per share, beating Wall Street expectations of $5.16 per share. Revenue of $3.45 billion also surpassed forecasts of $3.42 billion. The profit beat was driven by stronger-than-expected profitability, despite the airline reporting a NZD 336 million loss before tax for the year, up from a NZD 164 million profit in 2025.

Operational performance improved, with on-time performance rising to 84% and controllable cancellations falling to 1.3%. Passenger and operating revenues both increased, with passenger revenue up 4.8% to NZD 6.1 billion and operating revenue up 3.9% to NZD 7.0 billion. However, the company faces continued challenges, including high fuel prices, aviation system costs, and elevated aviation system costs.

Management described the year as one of rebuilding, with CEO Nikhil Ravishankar stating that the company has "rebuilt our fleet, materially improved our operations and reset our strategy." The stock initially rose 6.79% in after-hours trading before settling near its prior close in regular trading.