The airline is also not specifying where the jobs are, but it is understood those most at risk are at its Fanshawe St headquarters in central Auckland. Frontline operational roles aren’t understood to be under review.
Last year’s annual report showed there were 1364 management roles in a workforce of just on 12,000. Just over 200 managers were paid between $200,000 and $500,000 and 21 paid more than $500,000.
The highest profile departure in the latest wave of cost-cutting was chief corporate affairs officer Mat Bolland whose exit was announced last month in an NZX notice.
Then, the company said he would leave on July 31, as part of a wider review of costs being undertaken by the airline.
Bolland joined Air New Zealand in May 2021, helping the airline navigate its recovery from Covid.
Chief executive Greg Foran said Bolland had made a “remarkable contribution” but the economic challenges faced by the airline had led to an extensive review of costs, requiring the company to make some difficult decisions to manage them.
The airline in April downgraded its profit outlook for the financial year by up to $50m.
In February it announced it expected earnings before tax in the range of $200m to $240m.
But since providing that guidance, the airline has continued to see softening in revenue conditions over the fourth quarter both domestically and on the North American market.
Domestic performance has seen ongoing softening, with challenging economic conditions and ongoing cost-of-living pressures.
North American performance continues to be impacted by very competitive pricing pressures, as the market adjusts to the significant capacity added into the New Zealand market by US carriers.
It told the NZX in April that these softer revenue conditions are expected to result in lower underlying profitability for the 2024 financial year of approximately $40m to $50m.
When the pandemic hit in 2020 the airline axed jobs of about a third of its 12,000-strong workforce as it battled for survival. Most of those were in frontline roles but as the demand for air travel quickly recovered, the airline went on a hiring drive, returning numbers to near pre-Covid levels.
Grant Bradley has been working at the Herald since 1993. He is the Business Herald’s deputy editor and covers aviation and tourism.