Competition, fuel prices, and engine maintenance issues are weighing on earnings at Air New Zealand. Pent-up demand from lockdowns is largely exhausted, capacity constraints have eased, and competition is back. As global carrier capacity continues to recover, pricing is under pressure. Switching costs among airlines are negligible and consumers aren't loyal. As carriers increase capacity globally, pricing declines, underpinning our view that all airlines, including Air New Zealand, lack economic moats.