Air New ZealandASX:AIZ 38 Interest Coverage is 0 (At Loss) as of Dec. 2025. GuruFocus rates ASX:AIZ with a GF Score™ of 38/100 and a GF Value™ of A$0.52 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 838 Transportation companies, Air New Zealand ranks worse than 119331.62% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Air New Zealand's
Operating Income
for the
six
months ended in Dec. 2025 was A$-166 Mil. Air New Zealand's Interest Expense for the
six
months ended in Dec. 2025 was A$-61 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Air New Zealand's Interest Coverage or its related term are showing as below:
ASX:AIZ's Interest Coverage is not ranked *
in the Transportation industry.
Industry Median: 5.72 * Ranked among companies with meaningful Interest Coverage only.
Air New Zealand (ASX:AIZ) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Air New Zealand Interest Coverage Related Terms
Air New Zealand Interest Coverage Historical Data
* Premium members only.
The historical data trend for Air New Zealand's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
ASX:AIZ vs DAL, UAL, LUV: Interest Coverage Comparison
For the Airlines subindustry, Air New Zealand's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Transportation Industry
For the Transportation industry and Industrials sector, Air New Zealand's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Air New Zealand's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Air New Zealand did not have earnings to cover the interest expense.
* 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.
What does a Interest Coverage of 0 (At Loss) mean?
Air New Zealand (ASX:AIZ) has a Interest Coverage of 0 (At Loss) as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Air New Zealand and its competitors. According to the industry distribution chart, Air New Zealand ranks #999999 out of 838 companies in the Transportation industry.
Is Air New Zealand's Interest Coverage too high?
Air New Zealand's current Interest Coverage is 0 (At Loss). Based on the distribution chart, Air New Zealand ranks #999999 out of 838 companies in the Transportation industry, which is in the bottom quartile relative to peers. Overall, Air New Zealand has a GF Score™ of 38/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Air New Zealand's Interest Coverage compare to DAL and UAL?
According to the Transportation industry distribution chart, Air New Zealand ranks #999999 out of 838 companies for Interest Coverage. This places Air New Zealand in the lower half of its industry. The industry median Interest Coverage is 5.72. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Transportation company?
The median Interest Coverage among Transportation companies is 5.72, based on 838 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Air New Zealand and its competitors. For the Transportation industry, the median Interest Coverage is 5.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Air New Zealand's current Interest Coverage is 0 (At Loss). 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$0.36 — trading 31.7% below its estimated fair value. The current Interest Coverage is 0 (At Loss). Air New Zealand's overall GF Score™ is 38/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Air New Zealand (ASX:AIZ), the current Interest Coverage is 0 (At Loss) 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$0.36 is trading 31.7% 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:
Interest Coverage: 0 (At Loss)
GF Value™: A$0.52 vs. price of A$0.36 (31.7% below fair value)
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, 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.
38GF Score
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