Air New Zealand engineering job cuts could extend beyond Christchurch

Chris Lynch
Chris Lynch
Jul 31, 2026 6:27 pm |
Air NZ / File

Air New Zealand’s proposed engineering job cuts could extend beyond Christchurch, with roles also understood to be affected in Nelson and Auckland.

Chrislynchmedia.com first reported that nine light-maintenance roles at the airline’s Christchurch maintenance division could be cut as part of a consultation process.

A source said the affected team carried out overnight maintenance and other day-to-day work required to keep aircraft operating.

They said a further 12 roles were proposed to be cut from the Nelson engineering team, while at least three office staff had already lost their jobs.

Further reductions were understood to be under consideration in Auckland, although the number of positions potentially affected there remained unclear.

The source also raised concerns about the process being used to determine which employees could lose their jobs.

They said staff were being assessed using a selection matrix that placed significant weight on qualifications, technical skills and experience.

The source believed the process could favour more senior engineers and result in younger, less-experienced staff being disproportionately affected.

They warned that losing younger engineers could create longer-term workforce problems for New Zealand’s aviation sector as experienced engineers approach retirement.

The source said qualified and trainee aircraft engineers were in strong demand in Australia, meaning some affected workers could find employment across the Tasman.

However, they said the loss of those workers would further reduce New Zealand’s aviation-engineering capability.

Air New Zealand was asked to confirm how many employees could be affected across Christchurch, Nelson and Auckland, as well as the reasons for the proposed changes.

The airline confirmed consultation was under way but would not comment on possible outcomes.

“As we’re currently consulting with our people on this matter, it isn’t appropriate for us to comment on potential outcomes, including any possible changes to roles,” an Air New Zealand spokesperson told chrislynchmedia.com.

“Our focus right now is on supporting our people through the consultation process, and we’ll communicate any decisions with those affected first once the process has concluded.”

Air New Zealand did not say what prompted the proposal, when consultation would conclude or whether the reported selection matrix was being used.

The consultation comes as the airline works to reduce costs following a difficult financial year.

Air New Zealand reported a $59 million loss before tax for the first half of the 2026 financial year, compared with a $144 million pre-tax profit in the corresponding period a year earlier.

It recorded a net loss after tax of $40 million and did not declare an interim dividend.

The airline attributed the result to global engine-maintenance delays, a slower-than-expected recovery in domestic demand, rising aviation costs and a weaker New Zealand dollar.

In May, Air New Zealand forecast a full-year loss before tax of between $340 million and $390 million, based on the trading conditions and fuel-price assumptions applying at the time.

It said its anticipated fuel bill for the second half of the financial year had increased from about $740 million to approximately $980 million. The airline said that represented a $240 million headwind to its expected annual result, including the effects of fuel hedging.

The forecast also included about $50 million in unexpected maintenance expenses involving leased engines.

Air New Zealand has identified up to $100 million in annualised savings expected to take effect from the 2027 financial year.

In June, the airline announced a broader strategy reset focused on returning the business to profitability, improving reliability, pursuing growth in higher-return markets and transforming its cost base.

The airline has not said whether the proposed engineering changes are connected to that cost-reduction programme.

No final decision on the roles under consultation has been announced.

Do you know more? Email [email protected] in confidence.

Chris Lynch
Chris Lynch

Chris Lynch is a journalist, videographer and content producer, broadcasting from his independent news and production company in Christchurch, New Zealand. If you have a news tip or are interested in video content, email [email protected]

Have you got a news tip? Get in touch here

got a news tip?