Air New Zealand (ASX:AIZ) has flagged a fall in revenue growth and profit for the 2019 financial year.
The airline says higher costs after problems with some Rolls-Royce engines are to blame for the profit downgrade.
The company says it expects pretax earnings of between NZ$340 million and NZ$400 million for the year to June 30, down from an initial guidance range of NZ$425 million to NZ$525 million.
CEO Christopher Luxon says management has commenced a review of its network to ensure the business is on a strong footing going forward.
Shares in Air New Zealand (ASX:AIZ) closed 0.96 per cent higher at $3.15 yesterday.