Air New Zealand's Losses Could Widen on Jet Fuel Price Surge -- Market Talk

Dow Jones
03/06

2354 GMT - Air New Zealand is exposed to an additional daily fuel cost of NZ$4 million-NZ$5 million after jet fuel prices rose on the Iran conflict, and this for a business that is loss-making, estimates Forsyth Barr. "The risk to its near-term losses is materially to the downside if current oil market conditions persist,'" says analyst Andy Bowley, who rates the carrier at underperform. Air New Zealand purchases around 22,000 bbls of jet fuel daily. Its 2H fuel cost guidance is based on a crack spread of US$20/bbl. Forsyth Barr notes that crack spreads rose to US$140/bbl, from an already elevated US$45/bbl after Iran was attacked. Air New Zealand is down 6.4% at NZ$0.51. (david.winning@wsj.com; @dwinningWSJ)

 

(END) Dow Jones Newswires

March 05, 2026 18:54 ET (23:54 GMT)

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