Air New Zealand has warned of a substantial full-year loss as the escalating Middle East conflict drives up jet-fuel prices. The airline expects a loss before tax of NZ$340 million to NZ$390 million for the year ending June, significantly higher than the average analyst forecast of NZ$275 million. The projection assumes average fuel costs of $145 per barrel over the next six months, prompting the carrier to pursue aggressive cost reductions and service cuts to preserve cash flow and protect its balance sheet.

Key Points:

- Air New Zealand forecasts a full-year loss of NZ$340–390 million due to higher jet-fuel costs linked to Middle East tensions.

- The projected loss exceeds consensus analyst expectations of a NZ$275 million deficit.

- The airline assumes average fuel prices of $145 per barrel for the next six months.

- Management plans to cut costs and reduce services to mitigate the financial impact.