Air New Zealand shares drop as CEO Greg Foran announces resignation

Published 06/03/2025, 02:46
© Reuters.

Investing.com-- Air New Zealand Ltd (NZ:AIR) shares fell on Thursday after the airline announced that Chief Executive Greg Foran will step down in October 2025.

The board has initiated a global search for his successor, with Foran staying on to ensure a smooth transition, the company said in a statement.

Foran, who has led Air New Zealand since 2020, said he believes the airline is well-positioned for future growth and that the time is right for him to take on a new challenge. 

"Perhaps his most notable contribution has been managing significant global supply chain challenges. These begun with COVID 19, and continue today with the engine issues materially impacting both our Boeing (NYSE:BA) and Airbus fleets," Chairperson Dame Therese Walsh said in a statement.

Shares of the company fell more than 4% to NZ$0.590 as of 01:42 GMT.

The announcement comes as New Zealand’s flagship carrier grapples with significant fleet challenges due to global engine maintenance delays affecting its Airbus A321neo and Boeing 787-9 aircraft.

As of early 2025, up to six A321neos and four 787-9s have been grounded, representing over 16% of the airline’s jet fleet. These groundings stem from issues with Pratt & Whitney and Rolls-Royce (OTC:RYCEY) engines, necessitating extensive maintenance and leading to aircraft unavailability.

The airline anticipates these disruptions to persist until early 2026, impacting operational capacity and financial performance.

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