Air New Zealand Fuel Hedge Disclosure as at 14 Feb 2017

UnitsFY17 Q3FY17 Q4FY18 Q1FY18 Q2FY17 2HFY18 1H
Jan-MarApr-JunJul-SeptOct-DecJan - Jun 2017Jul - Dec 2017
Brent Collars
VolumeBarrels1,785,0001,630,0001,432,500725,0003,415,0002,157,500
Ceiling PriceUSD50.9154.2456.1457.3452.5056.54
Floor PriceUSD34.8338.5842.3544.4436.6243.05
Barrels1,785,0001,630,0001,432,500725,0003,415,0002,157,500
Barrels
2,238,5211,964,9772,250,0002,250,0004,203,4984,500,000
80%83%64%32%81%48%
USD8,935,4356,885,2505,880,9912,532,87715,820,6858,413,868
USD(5,429,550)
(5,008,275)(4,265,725)(2,180,675)(10,437,825)(6,446,400)
USD3,505,885
1,876,9751,615,266
352,2025,382,8601,967,468
Notes:
Brent spot was US$56 and 12 month Brent was US$57. As at 14 February 2017, Air New Zealand had no WTI or Singapore jet hedges.
Periods relate to the month of consumption. Air New Zealand does not use three way call structures or leveraged collar structures.
(1) Compensation from fuel hedges is the sum of the mark-to-market value of all fuel options as at 14 February 2017.
· The effective portion of changes in the intrinsic value and time value of fuel derivatives is recognised through Other Comprehensive Income; and
· Any accounting ineffectiveness is recognised through earnings.
Volume: Fuel volume is reported in barrels for passenger aircraft (42 US gallons in a barrel).
Price: Price is quoted in USD cost per barrel of Brent.
Air New Zealand Limited
Hedged volume as proportion of total
(2) Net compensation from fuel hedges represents the unrealised gains and losses on fuel hedges. These gains and losses will be accounted for in line with Air New Zealand Limited’s fuel instrument
accounting policy:
Total hedged volume
Net compensation from hedges (2)
Purchase cost of options
Compensation from fuel hedges (1)
Estimated fuel consumption
Fuel Hedge Position as at 14 February 2017