Analysts are worried Air New Zealand's earnings forecast down-grade could be the first sign that lower consumer confidence is starting to hit the company in the pocket.
The national carrier cut pre-tax earnings guidance on Wednesday to $330 million to $400m from $425m to $525m on the back of lower forward booking trends with slower growth within New Zealand and inbound tourism traffic.
William Curtayne, portfolio manager at Milford Asset Management, said the down-grade didn't come as a surprise but the size of it was more than expected.
Curtayne said Air New Zealand was a "bellweather" stock for the domestic economy and all eyes would be on other domestic focused companies over the reporting season to see if the consumer softness is widespread or if it was an Air New Zealand issue.
Already retail spending figures from December indicate consumers are tightening up on the purse strings.