Air New Zealand Fuel Hedge Disclosure as at 14 Feb 2018

Units
FY18 Q3
FY18 Q4
FY19 Q1
FY19 Q2
FY18H2
FY19H1
Jan-Mar
Apr-Jun
Jul-Sep
Oct-Dec Jan - Jun 2018 Jul - Dec 2018
Brent Collars
Volume
Barrels
1,360,000
1,120,000
1,187,500
500,000
2,480,000
1,687,5
00
Ceiling Price
USD
53.20
53.29
62.81
64.93
53.24
63.43
Floor Price
USD
44.65
44.07
48.88
50.00
44.39
49.21
Brent Call Spreads*
Volume
Barrels
75,000
75,000
Bought Call
USD
53.13
53.13
Sold Call
USD
58.00
58.00
Brent Swaps
Volume
Barrels
262,500
375,000
637,500
Price
USD
49.14
49.48
49.34
Bought Brent Puts**
Volume
Barrels
125,000
125,000
Strike Price
USD
40.00
40.00
Barrels
1,622,500
1,495,000
1,187,500
500,000
3,117,500
1,687,500
Barrels
2,314,730
2,153,461
2,400,000
2,400,000
4,468,191
4,800,000
70%
69%
49%
21%
70%
35%
USD
21,358,548
15,397,688
3,501,791
753,424
36,756,236
4,255,215
USD
(3,574,400)
(2,507,800)
(2,931,500)
(1,235,250)
(6,082,200)
(4,16
6,750)
USD
17,784,148
12,889,888
570,291
(481,826)
30,674,036
88,465
Notes:Brent spot was US$63 and 12 month Brent was US$60. As at 14 Fe
bruary 2018, Air New Zealand had no WTI or Singapore jet hedges
.
Periods relate to the month of consumption. Air New Zealand do
es not use three way call structures or leveraged collar struct
ures.
* Brent Call Spreads lower the ce
iling price of existing collar
structures.
** Bought Brent Puts allow Air New Zealand to benefit if oil pr
ices fall under the strike price.
(1)

Compensation from fuel hedges is the sum of the mark-to-market
value of all fuel options and swaps as at 14 February 2018.
·

The effective portion of changes in the intrinsic value and tim
e value of fuel derivatives is recognised through Other Compreh
ensive Income; and
· Any accounting ineffectiveness is recognised through earning
s.
V
olume:
Fuel volume is reported in barrels for passenger aircraft (42 U
S gallons in a barrel).
Price:
Price is quoted in USD cost per barrel of Brent.
Page 1 of 2
Air New Zealand Limited
(2) Net compensation from fuel hedges represents the unrealised
gains and losses on fuel hedges
. These gains and losses will b
e accounted for in line with Air New Zealand Limited’s fuel ins
trument accounting
policy:
Fuel Hedge Position as at 14 February 2018
Hedged volume as proportion of totalTotal hedged volumeNet compensation from hedges (2)Purchase cost of optionsCompensation from fuel hedges (1)Estimated fuel consumption

Page 2 of 2
0%10%20%30%40%50%60%70%80%
$30$35$40$45$50$55$60$65$70
FY18 Q3
Jan - Mar
FY18 Q4
Apr - Jun
FY19 Q1
Jul-Sep
FY19 Q2
Oct - Dec
Hedged % of estimated jetfuel consumption
US$ per barrel
Fuel hedge position(as at 14 February 2018)
Hedge percentage
Brent Collar Ceiling
Brent Collar Floor