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Moody’s Ratings lowers Air NZ’s outlook to negative, credit rating unchanged at Baa1
April 28th 2026
Moody’s Ratings has cut its credit rating outlook for Air New Zealand’s (Air NZ) from stable to negative amid expected soft earnings and challenging market conditions. Read More » The ratings agency noted Air NZ reported weaker-than-expected financial results for the six months to December 31 2025 due to persistent cost inflation, reduced fleet capacity due to engine reliability issues - noting it was receiving some compensation from engine makers for this - and ongoing weakness in macroeconomic conditions in the N.Z. economy. "The change to negative outlook primarily reflects the ongoing and increasing profitability pressures that Air New Zealand is facing, which are likely to lead to a material further weakening in credit metrics over the next 12-18 months," Moody’s Ratings said in a research note. "We understand the group is taking operational measures, including capacity and fare adjustments across the network, to try and partially mitigate the impact of increasing costs. However the negative outlook reflects the potential the company will not be able to improve profitability to levels that support credit metrics at appropriate levels for the rating over the next 12 to 18 months. We believe this will be particularly challenging given the ongoing uncertainty and further near term cost pressures related to the conflict in the Middle East and the duration of its disruption to fuel markets."
