March 10 (Reuters) – Air New Zealand suspended its fiscal 2026 earnings forecast on Tuesday, citing the recent escalation of conflict in the Middle East and unprecedented volatility in global jet fuel markets.
New Zealand’s flag carrier had forecast second-half earnings to be flat or weaker than the first half in its interim results last month, when it posted a loss before tax of NZ$59 million.
“Since that time, conflict in the Middle East has led to extreme volatility in jet fuel markets,” Air NZ said in its statement.
“Jet fuel prices, which were around $85 to $90 per barrel prior to the conflict, have increased sharply to between $150 and $200 per barrel in recent days.”
Fuel is the second-largest expense for air carriers after labour, typically accounting for a fifth to a quarter of operating expenses.
($1 = 1.6858 New Zealand dollars)
(Reporting by Shivangi Lahiri in Bengaluru; Editing by Shilpi Majumdar)
