Air New Zealand is bracing for a full-year loss before tax in the hundreds of millions as volatile jet fuel prices and international instability continue to weigh on the national carrier.

The airline said it expected a FY26 loss before tax in the range of $340 million to $390 million, with elevated and volatile jet fuel prices cited as a major factor.

The airline has also faced questions about flight cuts, regional services and fare pressure. Its position shows how quickly global conflict and energy prices can flow into the everyday cost and availability of travel in New Zealand.

Travellers, businesses reliant on freight and regional centres dependent on connections are all watching how the airline responds.

The key question is whether this is a one-year shock or the start of a longer adjustment.