Iran War Fallout May Force Air NZ to Raise Capital, Analysts Say

Air New Zealand Ltd. may have to delay purchases of new aircraft or raise fresh funds as soaring fuel prices further strain the finances of the unprofitable airline, according to analysts.

The Auckland-based company this week scrapped its full-year earnings guidance and said it would cut 5% of domestic and international flights between March 16 until May 3 to combat “unprecedented volatility in jet fuel prices.” Even before the Iran War, the carrier was beset by engine maintenance requirements, plane delivery delays and tepid domestic demand.