Air New Zealand Investor Update (Op Stats) – December 2017

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Contents
• December 2017 traffic highlights
• Operating statistics table
• Recent market announcements and media releases





December 2017 highlights













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Reported RASK (unit passenger revenue per available seat kilometre) is inclusive of foreign currency impact, and underlying RASK excludes foreign
currency impact.
* % change is based on numbers prior to rounding.

Group traffic summary
20172016%*20182017%*
Passengers carried (000)
1,6911,5956.1%
8,5308,086
5.5%
Revenue Passenger Kilometres(m)3,678
3,5832.6%
18,27417,7902.7%
Available Seat Kilometres (m)
4,3994,2892.6%22,13821,4093.4%
Passenger Load Factor (%)83.6%83.5%0.1 pts82.5%83.1%(0.6 pts)
Ye a r-to-da te RASK
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Group2.0% 2.5%
Short Haul5.3% 5.2%
Long Haul(3.3%)(2.0%)
DECEMBERFINANCIAL YTD
% change in reported RASK
(incl. FX)
% change in underlying RASK
(excl. FX)
30 January 2018

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Operating statistics table

GroupFINANCIAL YTD
2017
2016% *20182017% *
Passengers carried (000)
1,6911,5956.1%8,5308,086
5.5%
Revenue Passenger Kilometres(m)3,6783,5832.6%18,27417,7902.7%
Available Seat Kilometres (m)4,3994,2892.6%22,13821,4093.4%
Passenger Load Factor (%)83.6%83.5%0.1 pts82.5%83.1%(0.6 pts)
Short Haul TotalFINANCIAL YTD
20172016% *20182017% *
Passengers carried (000)1,4801,3837.1%7,5027,0606.3%
Revenue Passenger Kilometres(m)1,6131,5037.3%8,2367,7536.2%
Available Seat Kilometres (m)1,9751,8834.9%10,0449,5844.8%
Passenger Load Factor (%)81.6%79.8%1.8 pts82.0%80.9%1.1 pts
DomesticFINANCIAL YTD
20172016% *20182017% *
Passengers carried (000)1,1021,0257.5%5,5645,2076.9%
Revenue Passenger Kilometres(m)5795358.3%2,8512,6497.6%
Available Seat Kilometres (m)6926477.1%3,4913,3195.2%
Passenger Load Factor (%)83.6%82.6%1.0 pts81.7%79.8%1.9 pts
Tasman / Pacific
FINANCIAL YTD
20172016% *20182017% *
Passengers carried (000)378
3585.7%1,9381,8534.6%
Revenue Passenger Kilometres(m)1,034
9686.8%5,3855,1045.5%
Available Seat Kilometres (m)1,2831,2363.8%6,5536,2654.6%
Passenger Load Factor (%)80.6%78.4%2.2 pts82.2%81.5%0.7 pts
Long Haul Total
FINANCIAL YTD
20172016% *20182017% *
Passengers carried (000)211212(0.3%)1,0281,0260.2%
Revenue Passenger Kilometres(m)2,0652,080(0.7%)10,03810,0370.0%
Available Seat Kilometres (m)2,4242,4060.7%12,09411,8252.3%
Passenger Load Factor (%)85.2%86.4%(1.2 pts)83.0%84.9%(1.9 pts)
Asia / Japan / SingaporeFINANCIAL YTD
20172016% *20182017% *
Passengers carried (000)8890(2.0%)4214180.9%
Revenue Passenger Kilometres(m)784801(2.1%)3,7543,7230.8%
Available Seat Kilometres (m)911927(1.8%)4,6614,4824.0%
Passenger Load Factor (%)86.0%86.3%(0.3 pts)80.5%83.1%(2.6 pts)
Americas / UKFINANCIAL YTD
20172016% *20182017% *
Passengers carried (000)1231221.0%607608(0.2%)
Revenue Passenger Kilometres(m)1,2811,2790.1%6,2846,314(0.5%)
Available Seat Kilometres (m)1,5131,4792.3%7,4337,3431.2%
Passenger Load Factor (%)84.7%86.4%(1.8 pts)84.5%86.0%(1.5 pts)
* % change is based on numbers prior to rounding
Air New Zealand operates primarily in one segment, its primary business being the transportation of passengers and
cargo on an integrated network of scheduled airline services to, from and within New Zealand. The following operational
data and statistics is additional supplementary information only.
DECEMBER
DECEMBER
DECEMBER
DECEMBER
DECEMBER
DECEMBER
DECEMBER

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Market announcements
(during the period 13 December 2017 to 26 January 2018)

Air New Zealand releases 2017 Databook 12 December 2017

Air New Zealand advises the release of the 2017 Databook, which provides a summary of the airline’s
strategy, operations, financial performance and leadership. The Databook can be accessed via Air New
Zealand’s Investor Centre website at www.airnzinvestor.com or by clicking here
.

Media releases
(during the period 13 December 2017 to 26 January 2018)

Dunedin-Auckland moves to triple daily jet services 25 January 2018

Air New Zealand has announced an additional return Airbus A320 service between Dunedin and Auckland
on Saturdays, taking the number of jet services operated on the route to three per day, seven days a week.

The additional Saturday afternoon service will add around 17,000 seats annually to the route.

Air New Zealand Chief Revenue Officer Cam Wallace says the additional flight will not only provide more
options for weekend travellers but will also benefit the wider Dunedin region.

"Dunedin is a key destination for Air New Zealand so it's terrific to see continued strong demand for services.

"We are committed to growing services between the two cities and working closely with Dunedin Airport. In
November 2017, we opened our new Dunedin Regional Lounge at the airport which caters for more than 120
customers," says Mr Wallace.


Air New Zealand boosts Fiji flights from Christchurch 18 December 2017

Air New Zealand will fly nearly 6,000 extra seats on its seasonal service between Christchurch and Fiji in
2018, an increase of more than 40 percent.

The airline currently operates two services per week from Christchurch to Nadi International Airport between
July and October, increasing to three services per week at peak times.

Next year Air New Zealand's Christchurch-Fiji service will start five weeks earlier on 26 May, with up to four
services per week in the busy school holiday period.

Air New Zealand Chief Revenue Officer Cam Wallace says the airline has tripled capacity between
Christchurch and Fiji over the past five years.

"Fiji is a clear favourite for Kiwi holidaymakers. We're pleased these extra flights will offer South Island
travellers greater flexibility for their holiday plans."

The new flights will be operated by the airline's A320 aircraft and are available for purchase.

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Air New Zealand grows Wellington-Queenstown route 15 December 2017

Air New Zealand is set to grow the number of seats available on the Wellington-Queenstown route by around
50 percent from April next year.

The airline will operate an extra five A320 direct services a week between Wellington and Queenstown, the
equivalent of 38,000 extra one-way seats compared with the previous year.

The five new services are in addition to the airline's existing daily direct jet service and will operate between
Thursday and Monday, taking the total number of jet services per week to 12. In addition to this, a number of
other Wellington-Queenstown services are operated by the airline's ATR turboprop aircraft.


Air New Zealand and Virgin Australia boost Brisbane-Auckland services 14 December 2017

Air New Zealand and Virgin Australia have announced changes to one of their key alliance routes driven by
an improved demand outlook.

The two airlines are set to provide customers with an expanded schedule of flights on the Auckland-Brisbane
route, with up to five extra flights a week delivering an additional 38,000 seats between April and October
2018. This means customers will now be able to choose from up to 34 return services per week.

In addition, Virgin Australia will be re-timing its weekday Auckland-Brisbane service to provide a better
evening schedule proposition for the alliance, with the choice of departure times of 4:00pm, 6:00pm and
7:30pm allowing for more flexibility for customers.



Air New Zealand charters two aircraft to maintain international 11 December 2017
summer schedule

Air New Zealand has leased two aircraft to help maintain its timetable during the unscheduled maintenance
of some Rolls-Royce engines on its 787-9 fleet.

The Airbus 330 and Airbus 340 are being chartered from European company Hi Fly. They are expected to
begin operating some Auckland-Sydney and all Auckland-Perth services by mid-December

Air New Zealand General Manager Customer Experience Anita Hawthorne says the airline is working hard to
minimise the impact on customers caused by the unscheduled Rolls-Royce engine maintenance.

"Unfortunately, around 4,500 customers have been affected by international flight delays and a small number
of cancellations over the past week. Once these two additional aircraft are in service we will be able to operate
a near normal timetable," Ms Hawthorne says.

"The aircraft will be operated by pilots and crew from Hi Fly under the oversight of Air New Zealand. This was
a much quicker path to get the aircraft into our network than going through a lengthy certification and training
programme for our own people, who are not trained to operate the Airbus widebody aircraft.

"Air New Zealand's union partners have been extremely understanding of this situation and share our
commitment to take the necessary steps to maintain the flight schedule over this important Christmas and
summer period. We thank them for their support."