** Macquarie cuts price target for Air New Zealand AIR.NZ to NZ$0.83 from NZ$0.85

** Brokerage forecasts earnings to lower in FY26 and FY27 by 17% and 5% respectively on weaker capacity and demand recovery

** Says volatile global conditions stemming from trade war uncertainties to worsen consumer confidence which could spillover to co's markets

** Stock is up 0.9%, in line with positive sentiment seen in local markets, with New Zealand's S&P/NZX 50 .NZ50

** YTD, shares down 2.50%

(Reporting by Nichiket Sunil in Bengaluru)

((Nichiket.Sunil@thomsonreuters.com))