Air New Zealand Investor Update (Op Stats) – February 2018

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Contents
• February 2018 traffic highlights
• Operating statistics table
• Recent market announcements and media releases





February 2018 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
20182017%*20182017%*
Passengers carried (000)1,3351,2685.3%11,11810,5365.5%
Revenue Passenger Kilometres(m)2,9232,7496.3%24,22023,4943.1%
Available Seat Kilometres (m)3,5163,3694.4%29,31528,3533.4%
Passenger Load Factor (%)83.1%81.6%1.5 pts82.6%82.9%(0.3 pts)
Ye a r-to-da te RASK
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Group2.0% 2.0%
Short Haul4.9% 4.6%
Long Haul(2.6%)(2.1%)
FEBRUARYFINANCIAL YTD
% change in reported RASK
(incl. FX)
% change in underlying RASK
(excl. FX)
27 March 2018

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Operating statistics table

Group
2018
2017
% *
20182017
% *
Passengers carried (000)
1,3351,268
5.3%
11,118
10,536
5.5%
Revenue Passenger Kilometres(m)2,923
2,749
6.3%24,220
23,494
3.1%
Available Seat Kilometres (m)
3,516
3,3694.4%
29,31528,353
3.4%
Passenger Load Factor (%)83.1%
81.6%1.5 pts
82.6%82.9%
(0.3 pts)
Short Haul Total
2018
2017% *
20182017
% *
Passengers carried (000)
1,1611,103
5.3%9,738
9,166
6.2%
Revenue Passenger Kilometres(m)1,219
1,1317.8%
10,729
10,0706.5%
Available Seat Kilometres (m)1,477
1,4144.5%
13,103
12,501
4.8%
Passenger Load Factor (%)82.5%
80.0%
2.5 pts81.9%
80.6%
1.3 pts
Domestic
2018
2017
% *2018
2017% *
Passengers carried (000)
8868494.4%
7,213
6,764
6.6%
Revenue Passenger Kilometres(m)470442
6.5%
3,7333,470
7.6%
Available Seat Kilometres (m)548531
3.4%
4,537
4,3284.8%
Passenger Load Factor (%)85.8%83.2%
2.6 pts
82.3%80.2%
2.1 pts
Tasman / Pacific
2018
2017% *
2018
2017% *
Passengers carried (000)
275
2548.3%2,525
2,4025.1%
Revenue Passenger Kilometres(m)749
689
8.6%6,9966,600
6.0%
Available Seat Kilometres (m)
929883
5.2%8,5668,173
4.8%
Passenger Load Factor (%)80.6%78.1%
2.5 pts81.7%
80.8%
0.9 pts
Long Haul Total
2018
2017% *2018
2017
% *
Passengers carried (000)174
1655.4%
1,3801,370
0.7%
Revenue Passenger Kilometres(m)1,7041,6185.3%
13,49113,424
0.5%
Available Seat Kilometres (m)2,0391,955
4.3%16,212
15,8522.3%
Passenger Load Factor (%)83.6%82.8%0.8 pts
83.2%84.7%
(1.5 pts)
Asia / Japan / Singapore
2018
2017% *2018
2017% *
Passengers carried (000)74
722.1%567564
0.5%
Revenue Passenger Kilometres(m)6616482.0%
5,0535,0350.4%
Available Seat Kilometres (m)808790
2.3%6,2446,0712.8%
Passenger Load Factor (%)
81.8%82.0%(0.2 pts)
80.9%82.9%(2.0 pts)
Americas / UK
20182017
% *20182017% *
Passengers carried (000)100938.0%
8138060.9%
Revenue Passenger Kilometres(m)1,0439707.5%8,4388,389
0.6%
Available Seat Kilometres (m)1,2311,1655.6%9,9689,781
1.9%
Passenger Load Factor (%)84.8%
83.3%1.5 pts84.6%85.8%(1.2 pts)
FEBRUARY
FEBRUARY
FEBRUARY
* % 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.
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Market announcements
(during the period 17 February 2018 to 26 March 2018)

Air New Zealand Participates in Deutsche Bank Virtual ADR Conference 21 March 2018

Air New Zealand participated in Deutsche Bank’s American Depositary Receipt (ADR) Virtual Investor
Conference on 21 March. A link to the investor presentation can be accessed here
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Air New Zealand Announces 2018 Interim Result 22 February 2018

Air New Zealand reports $323m interim result, on track for second highest profit in company history

Interim highlights

• Earnings before taxation of $323 million
• Net profit after taxation of $232 million
• Operating revenue of $2.7 billion
• Record passenger revenue of $2.3 billion
• 8.5 million passengers carried during the period
• Capacity increased 3.4%
• Operating cash flow of $479 million
• Board approves fully imputed interim dividend of 11.0 cents per share, a 10% increase on the prior period
and the highest ordinary interim dividend in the airline’s history
• Announces new direct international service to Taipei
• Reaffirms full year guidance based upon current market conditions and despite the increased price of jet
fuel, with the Company still expecting 2018 earnings before taxation to exceed the prior year

Air New Zealand today announced earnings before taxation for the first six months of the 2018 financial year
of $323 million, compared to $349 million in the prior period. Net profit after taxation was $232 million.

The result was driven by operating revenue growth of 5.6 percent, with robust demand across all markets and
particularly strong growth in the short-haul network. Passenger revenue reached an all-time record for an
interim result, at $2.3 billion. The airline’s continued focus on sustainable cost initiatives also contributed to
the interim performance, as efficiencies offset the impact of inflation on unit costs, excluding fuel. Cash flow
from operations grew $103 million or 27 percent to $479 million, driven by growth in cash operating earnings
and a strong working capital cash flow as the business grows.

Chairman Tony Carter says shareholders can be very pleased with the high quality financial performance
demonstrating the airline’s resilience despite an 18 percent increase in fuel price.

“This high quality interim performance was driven by robust passenger demand and revenue growth,
reflecting the airline’s strong position in New Zealand and throughout our Pacific Rim network.”

The Board has declared a fully imputed interim dividend of 11.0 cents per share, an increase of 10 percent
from the prior period and the highest ordinary interim dividend in the airline’s history.

“Based on the strength of the result, and the airline’s financial position, future capital commitments and
positive trading environment, the Board felt it appropriate to raise the level of the interim dividend,” says Mr
Carter. The interim dividend will be paid on 16 March 2018 to investors on record as of the close of business
on 9 March 2018.

Chief Executive Officer Christopher Luxon says 2018 is shaping up to be another exciting year of growth for
Air New Zealand.

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“We are thrilled with the performance of our network in the period. The domestic market continues to show
strength driven by the New Zealand economy as well as inbound tourism, and we will be increasing capacity
approximately six percent across our regional and jet services to support that demand over the second half
of the financial year. The Trans-Tasman and Pacific Island routes have also responded strongly to additional
wide-body services and targeted capacity increases. Finally, our alliance partnerships continue to drive value
across our international long-haul network, and have been a key factor in our ability to effectively compete
against much larger airlines.”

The airline also announced today the launch of a new direct service to Taipei, beginning in November 2018.
Taipei will become the airline’s seventh destination in Asia, and is another strong addition to Air New
Zealand’s focused strategy of connecting the Pacific Rim to New Zealand. Taipei is an economic centre with
renowned attractions, cuisine and shopping, and the airline is excited to offer New Zealanders the opportunity
to explore this new destination.
Mr Luxon also acknowledges and thanks the airline’s staff for their dedication and professionalism while
dealing with recent operational disruptions.

“We have had some unprecedented weather events, along with the fuel pipeline disruption and the
unscheduled engine maintenance on some of the Boeing 787-9 aircraft. All of these disruptions are outside
of our control, but our people have been remarkable, with a clear focus on doing the best for our customers,
and that is what really sets us apart and drives such strong loyalty for our airline.”

Outlook

Commenting on the outlook Chairman Tony Carter says, “Looking to the remainder of the year, we are
optimistic about the overall market dynamics. Based upon the current market conditions and despite the
increased price of jet fuel, the Company is still expecting 2018 earnings before taxation to exceed the prior
year.”

Media releases
(during the period 17 February 2018 to 26 March 2018)

More Kiwi kids to experience the magic of flight 16 March 2018

Airpoints™ members are showing their generosity towards this year's Air New Zealand Airpoints for Schools
programme, with four schools already meeting their donation targets to take off on some unforgettable
journeys.

The programme has doubled in size this year, with 20 schools from across the country seeking funding
support of up to 20,000 Airpoints Dollars™ each to support flights for chosen environmental, educational or
cultural projects, resulting in almost 400,000 Airpoints Dollars in available funds.

This year the airline received entries from more than 100 schools across New Zealand for travel in support of
projects taking place from May 2018 onwards.

Air New Zealand Airpoints members are able to donate Airpoints Dollars to the school of their choice through
the Airpoints Store.


Air New Zealand launches World’s Coolest Safety Video 1 March 2018

Air New Zealand shines a global spotlight on Antarctica with the launch of its latest safety video, which
showcases the frozen continent and the important climate and environmental science underway there.

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Featuring Hollywood actor, filmmaker and environmentalist Adrian Grenier, the World's Coolest Safety Video
takes viewers on a breath-taking journey to Antarctica, where Kiwi scientists are tackling the most pressing
questions on global climate change.

Building on Air New Zealand's long-standing partnership with Antarctica New Zealand and the New Zealand
Antarctic Research Institute, the video sees Grenier team up with Scott Base scientists to track penguin
populations, study ice core samples and visit early explorer Ernest Shackleton's hut and the vast Dry Valleys.

To minimise the environmental impact of filming, a total crew of just six travelled to Antarctica, with Scott Base
scientists and staff doubling as supporting talent in the safety video. The airline has also released television
and online content, providing a more in-depth look at Antarctica and the work being done there.

One of Antarctica New Zealand's key mandates is to raise awareness of Antarctica and the research taking
place there. Chief Executive Officer Peter Beggs says the safety video project is an incredible opportunity to
profile Kiwi Antarctic science around the world.

"Air New Zealand's safety videos have collectively attracted more than 130 million online views. Our teams
are thrilled to have such a significant global platform to amplify their work and we’re confident it will take our
outreach efforts to the next level."

The safety video is available to view online here
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Air New Zealand takes off to Taipei 22 February 2018

Air New Zealand has announced it will start operating non-stop flights between Auckland and Taipei from
November 2018.

The airline will fly up to five times a week between Auckland and Taipei's Taoyuan International Airport from
November.

With a flight time of just over 11 hours, the service from Auckland to the central Asian destination will be
operated by Air New Zealand's Boeing 787-9 Dreamliner aircraft.

Air New Zealand Chief Executive Officer Christopher Luxon says New Zealand is already a popular
destination for visitors from this region and the new direct route will encourage even more tourist activity.

"Air New Zealand's new service is significantly quicker and more convenient than current indirect options.
New Zealand already welcomes around 36,000 visitors a year from the Taiwan market and we're confident a
direct link will grow numbers further.

"Providing a non-stop service to Taipei will also enable more Kiwis to explore this destination. Taipei is a
culturally diverse city renowned for its food scene, lively night markets, traditional temples and busy shopping
streets - all crowned by the Taipei 101 skyscraper that dominates the city's skyline. Beyond Taipei there are
nine national parks offering nature experiences and activities such as hiking and biking as well as beautiful
beaches."

The service is subject to government and regulatory approvals.