Air New Zealand (ASX:AIZ) Effective Interest Rate on Debt %: 4.45% (As of Dec. 2025)

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ASX:AIZ Air New Zealand Ltd ASX:AIZ
32 GF Score
Price A$0.35
GF Value A$0.52
Valuation Possible Value Trap
! 6 Warning Signs
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What is Air New Zealand Effective Interest Rate on Debt %?

Air New Zealand ASX:AIZ 32 Effective Interest Rate on Debt % is 4.45% as of Dec. 2025. GuruFocus rates ASX:AIZ with a GF Score™ of 32/100 and a GF Value™ of A$0.52 (Possible Value Trap). The stock has 6 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Air New Zealand's annualized positive value of Interest Expense for the quarter that ended in Dec. 2025 was A$122 Mil. Air New Zealand's average total debt for the quarter that ended in Dec. 2025 was A$2,738 Mil. Therefore, Air New Zealand's annualized Effective Interest Rate on Debt % for the quarter that ended in Dec. 2025 was 4.45%.


Air New Zealand  (ASX:AIZ) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Air New Zealand Effective Interest Rate on Debt % Related Terms


Air New Zealand Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Air New Zealand's Effective Interest Rate on Debt % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Air New Zealand Effective Interest Rate on Debt % Chart

Air New Zealand Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.56 2.78 4.92 6.08 5.28

Air New Zealand Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.13 6.05 5.55 4.74 4.45

ASX:AIZ vs DAL, UAL, LUV: Effective Interest Rate on Debt % Comparison

For the Airlines subindustry, Air New Zealand's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Air New Zealand Effective Interest Rate on Debt % vs Transportation Industry

For the Transportation industry and Industrials sector, Air New Zealand's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Air New Zealand's Effective Interest Rate on Debt % falls into.


ASX:AIZ
32GF Score
Air New Zealand Ltd ASX:AIZ
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
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Air New Zealand Effective Interest Rate on Debt % Calculation

Air New Zealand's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Jun. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Jun. 2024 )+Total Debt  (A: Jun. 2025 ))/ count )
=-1  *  -138.119/( (2603.374+2630.759)/ 2 )
=-1  *  -138.119/2617.0665
=5.28 %

where

Total Debt  (A: Jun. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=2152.221 + 451.153
=2603.374

Total Debt  (A: Jun. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1890.105 + 740.654
=2630.759

Air New Zealand's annualized Effective Interest Rate on Debt % for the quarter that ended in Dec. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Jun. 2025 )+Total Debt  (Q: Dec. 2025 ))/ count )
=-1  *  -121.932/( (2630.759+2845.39)/ 2 )
=-1  *  -121.932/2738.0745
=4.45 %

where

Total Debt  (Q: Jun. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1890.105 + 740.654
=2630.759

Total Debt  (Q: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=2080.697 + 764.693
=2845.39

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is two times the semi-annual (Dec. 2025) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 4.45% mean?
Air New Zealand (ASX:AIZ) has a Effective Interest Rate on Debt % of 4.45% as of Dec. 2025. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Air New Zealand and its competitors.
Is Air New Zealand's Effective Interest Rate on Debt % too high?
Air New Zealand's current Effective Interest Rate on Debt % is 4.45%. Overall, Air New Zealand has a GF Score™ of 32/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Air New Zealand's Effective Interest Rate on Debt % compare to DAL and UAL?
Air New Zealand's Effective Interest Rate on Debt % of 4.45% can be compared against companies in the Transportation industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Transportation company?
A good Effective Interest Rate on Debt % depends on the Transportation industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Air New Zealand and its competitors. Air New Zealand's current Effective Interest Rate on Debt % is 4.45%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Air New Zealand stock overvalued right now?
Based on GuruFocus' analysis, Air New Zealand (ASX:AIZ) is currently considered Possible Value Trap. The stock's GF Value™ is A$0.52, compared to a current price of A$0.35 — trading 32.7% below its estimated fair value. The current Effective Interest Rate on Debt % is 4.45%. Air New Zealand's overall GF Score™ is 32/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Air New Zealand (ASX:AIZ), the current Effective Interest Rate on Debt % is 4.45% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Air New Zealand (ASX:AIZ) Overvalued in 2026?

Based on GuruFocus' analysis, Air New Zealand stock appears to be undervalued. The current stock price of A$0.35 is trading 32.7% below its estimated GF Value™ of A$0.52. GuruFocus considers Air New Zealand to be Possible Value Trap.

Key valuation signals for ASX:AIZ:

  • Effective Interest Rate on Debt %: 4.45%
  • GF Value™: A$0.52 vs. price of A$0.35 (32.7% below fair value)
  • GF Score™: 32/100 with 6 warning signs

No single metric tells the full story. See the ASX:AIZ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Air New Zealand Business Description

Address 185 Fanshawe Street, Air New Zealand House, Auckland, NTL, NZL, 1010
Air New Zealand, majority owned by the New Zealand government, provides air passenger and cargo transport services within New Zealand as well as to and from Australia, the Southwest Pacific, Asia, North America, the United Kingdom, and South America. Air New Zealand also encompasses business units providing engineering and ground handling services. Air New Zealand dominates the local market with around 80% share, although the majority of revenue is derived from international and trans-Tasman activity.
32GF Score

Get the complete analysis for ASX:AIZ

Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$0.35
Price
A$0.52
GF Value