Air New Zealand 2024 Finance Crisis

Air New Zealand faces financial stress due to Pratt and Whitney engine issues, impacting flights and finances. Intense competition, especially from US airlines like United, exacerbates their struggles, with increased flights offering consumers more choices. The airline also incurs hefty costs for engine fixes, likely leading to higher fares for both international and domestic flights.

An Air New Zealand 787 in Auckland | Photo by Noah Stohr-Waldren

In recent news, New Zealand’s flag carrier “Air New Zealand” is currently under financial stress as of for the first 6 months of 2024. Due to the Pratt and Whitney issues with the engines it has slowed down Air New Zealand along with a lot of other airlines both with flights and financially.

However, with recent competition with other airlines, this is the main factor on why they are struggling at the moment. All overseas airline companies (especially the US) are having a huge impact on the issue as United Airlines have recently expanded all flights in the Oceania region to the US quite significantly into such a content that even Qantas doesn’t have as many flights out of the Oceania region to the US!

A United 777 taxiing in Auckland | Photo by Noah Stohr-Waldren

Adding more flights from the US companies to the New Zealand region is only adding more choices for consumers to choose from. Finally touching back on to the Pratt and Whitney issues Air New Zealand has to pay a cost of up to 35 million dollars for the fixes. With all of these issues both it’s most likely international and domestic flights will increase for rising costs.