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

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





September 2018 highlights










* % change is based on numbers prior to rounding
+ The year to date percentage movements have been adjusted on a daily weighted average basis. The adjustment takes into account the difference in
days for the accounting month of July 2018 (29 days) compared with July 2017 (30 days).
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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.
.
31 October 2018

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Operating statistics table


GroupFINANCIAL YTD
20182017% *20192018% *+
Passengers carried (000)1,6611,5676.0%4,3734,1975.3%
Revenue Passenger Kilometres(m)3,5933,4085.4%9,6059,1386.3%
Available Seat Kilometres (m)4,2784,1313.6%11,50211,1604.2%
Passenger Load Factor (%)84.0%82.5%1.5 pts83.5%81.9%1.6 pts
Short Haul TotalFINANCIAL YTD
20182017% *20192018% *+
Passengers carried (000)1,4631,3736.6%3,8463,6865.5%
Revenue Passenger Kilometres(m)1,6491,5158.8%4,4364,1358.5%
Available Seat Kilometres (m)1,9761,8566.5%5,4115,1017.2%
Passenger Load Factor (%)83.4%81.6%1.8 pts82.0%81.1%0.9 pts
DomesticFINANCIAL YTD
20182017% *20192018% *+
Passengers carried (000)1,0801,0176.2%2,8022,7054.7%
Revenue Passenger Kilometres(m)5485136.7%1,4341,3775.3%
Available Seat Kilometres (m)6536431.7%1,7521,7232.8%
Passenger Load Factor (%)83.8%79.9%3.9 pts81.9%79.9%2.0 pts
Tasman / PacificFINANCIAL YTD
20182017% *20192018% *+
Passengers carried (000)3823567.5%1,0449817.5%
Revenue Passenger Kilometres(m)1,1011,00210.0%3,0022,75810.0%
Available Seat Kilometres (m)1,3231,2139.1%3,6593,3789.5%
Passenger Load Factor (%)83.2%82.6%0.6 pts82.1%81.7%0.4 pts
Long Haul TotalFINANCIAL YTD
20182017% *20192018% *+
Passengers carried (000)1981942.3%5275114.2%
Revenue Passenger Kilometres(m)1,9441,8932.7%5,1685,0034.4%
Available Seat Kilometres (m)2,3022,2751.2%6,0926,0591.6%
Passenger Load Factor (%)84.4%83.2%1.2 pts84.8%82.6%2.2 pts
Asia / Japan / SingaporeFINANCIAL YTD
20182017% *20192018% *+
Passengers carried (000)77760.6%2072033.0%
Revenue Passenger Kilometres(m)6846810.4%1,8441,8122.8%
Available Seat Kilometres (m)850877(3.0%)2,2652,316(1.2%)
Passenger Load Factor (%)80.4%77.7%2.7 pts81.4%78.2%3.2 pts
Americas / UKFINANCIAL YTD
20182017% *20192018% *+
Passengers carried (000)1221183.4%3203085.0%
Revenue Passenger Kilometres(m)1,2601,2123.9%3,3243,1915.3%
Available Seat Kilometres (m)1,4521,3983.8%3,8273,7433.4%
Passenger Load Factor (%)86.8%86.7%0.1 pts86.9%85.2%1.7 pts
SEPTEMBER
SEPTEMBER
SEPTEMBER
SEPTEMBER
SEPTEMBER
SEPTEMBER
SEPTEMBER
* % 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.
+ The year to date percentage movements have been adjusted on a daily weighted average basis. The adjustment takes into
account the difference in days for the accounting month of July 2018 (29 days) compared with July 2017 (30 days).

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Market announcements

Air NZ General Counsel and Company Secretary resignation 2 October 2018

Air New Zealand’s General Counsel and Company Secretary, Karen Clayton will be leaving the airline next
year to join IATA, based in Geneva, Switzerland.

Ms Clayton will join IATA’s Executive team in the global role of Corporate Secretary where her responsibilities
will include advising the IATA Board and Management on IATA’s strategic plans, including industry and IATA
innovation and transformation issues, and ensuring the integrity of IATA’s governance framework.

Ms Clayton joined Air New Zealand in December 2016 from Mercury NZ Limited and before that National Grid
plc in the UK and has made a significant impact during her time at the airline, supporting the Board, Executive
and various teams on a wide range of legal, risk, privacy, compliance and governance issues.
Air New Zealand will be conducting a global search to identify a new General Counsel and Company
Secretary.
Results of 2018 Annual Shareholders Meeting 26 September 2018

At Air New Zealand’s shareholder meeting, held in Christchurch on Wednesday, 26 September 2018,
shareholders were asked to vote on two resolutions, which were supported by the Board of Directors.

Voting on both resolutions was by way of poll.

The resolutions passed by shareholders were:

• To re-elect Tony Carter
• To re-elect Rob Jager

Detail of the total number of votes cast in person or by a proxy holder are:

Resolution For Against Abstain
1. To re-elect Tony
Carter
939,581,947
98.80%
11,428,776
1.20%
2,056,728
-
2. To re-elect Rob Jager
951,157,115
100.00%
25,186
0.00%
1,886,370
-
Air New Zealand 2018 Annual Shareholders’ Meeting Materials 26 September 2018
Please find below a link to the Chairman and CEO address, in addition to the presentation for Air New
Zealand’s 2018 Annual Shareholders’ Meeting.

2018 Air NZ Annual Meeting Address
2018 Air NZ Annual Meeting Presentation

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Media Releases
Three million members for Air New Zealand Airpoints™ 23 October 2018

New Zealand’s most rewarding loyalty programme, Airpoints
TM
is celebrating three million members.

The Airpoints programme was first introduced in 1989 as the Frequent Traveller Club and has evolved over
the past 19 years to become the most rewarding frequent flyer and coalition loyalty programme in New
Zealand.

As well as earning Airpoints Dollars
TM
and Status Points when members fly with Air New Zealand and other
airline partners, members can earn at more than 60 retail and service partners on the ground and at over 150
online retailers through the Airpoints Mall.

To mark the occasion, Airpoints members have the opportunity to enter an online competition for their chance
to win a share of prizes, including flights, Airpoints Dollars and prizes from partners such as Liquorland,
Harvey Norman, Bayleys and Aelia Duty Free.

Air New Zealand General Manager Loyalty Mark Street says in less than three years more than one million
members have joined the programme attracted by more ways to earn and spend Airpoints Dollars.

“In the past year alone, members have enjoyed more than 1.1 million rewards purchased using Airpoints
Dollars, including flights, gifts and experiences from our Airpoints Store, and other travel-related products.

“We’ve recently introduced some great new products, such as Airpoints Flexipay which lets people part pay
with Airpoints Dollars and cash for flights and in the past few weeks introduced the ability for members to
spend their Airpoints Dollars instore at Mitre 10 stores nationwide.

“We would like to thank members for their loyalty over the years and look forward to continuing to reward
them as we celebrate this significant programme milestone.”


Air New Zealand to lift plastic waste reduction to 16 October 2018
more than 24 million items per year

Air New Zealand will substitute a further 14 single-use plastic products from its supply chain over the next 12
months – lifting plastic waste reduction to more than 24 million items per year.

At its Sustainability Breakfast in Wellington the airline committed to replacing five single-use plastic products
across domestic services, including water cups, café cups and lids, Koru Hour cheese plates, as well as nine
types of plastic bags network-wide, with lower impact alternatives over the next 12 months.

Already this year the airline has removed single-use plastic straws, stir sticks, eye mask wrappers and plastic
toothbrushes from lounges and on-board aircraft. Over a 12-month period this will see the airline reduce its
plastic footprint by 260,000 plastic toothbrushes, 3,000 straws, 7.1 million stirrers and 260,000 eye mask
wrappers.

These changes are part of a wider programme aimed at reducing the airline’s use of plastic, supported by the
Ministry for the Environment, which has assisted the airline in identifying lower impact alternatives and aligning
its end-of-life solutions to New Zealand’s existing facilities, recycling and composting capabilities.

Air New Zealand’s Head of Sustainability Lisa Daniell says the airline’s employees and its customers have
been a real catalyst for this change.

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“Plastics are top of mind for us and our customers. Several of our waste and plastic reduction initiatives have
been brought about by our employees telling us we can do better in this area. We know these are small steps
but given our scale, they do result in a significant amount of single-use plastic being avoided.

“We are also working closely with our suppliers, who to date have been really supportive in helping us search
for new ways to directly procure a number of inflight single-use plastic products, as has the Ministry for the
Environment,” says Ms Daniell.


Air New Zealand partners with Zephyr Airworks to bring 16 October 2018
air taxis to New Zealanders

Air New Zealand and Zephyr Airworks announced they have signed an agreement to work collaboratively on
bringing the world’s first autonomous electric air taxi service to market in New Zealand.

The agreement with the operator of Cora, the world’s first autonomous electric air taxi, signals the intention
to form a long-term relationship to make autonomous, electric air travel a reality for all New Zealanders.

Air New Zealand Chief Executive Officer Christopher Luxon says the airline is committed to embracing new
technologies that make life easier, as well as understanding the potential of cleaner energy solutions for
travel.

“Zephyr Airworks is leading the way in re-defining personal mobility to make it easier for all of us to get around.
Zephyr Airworks’ innovative technology and commitment to New Zealand make them an ideal partner for
advancing the future of travel in New Zealand.

“Both companies see the potential for our airspace to free people from the constraints of traffic and its
associated social, economic and environmental impacts.

“Through the development of their autonomous electric air taxi Cora, the possibility of getting from A to B
quickly and safely, and also relieving the impact of polluting emissions, is very real indeed.”

Zephyr Airworks Chief Executive Fred Reid says the company is delighted to be fostering a close relationship
with one of the world’s top-rated and successful airlines.

“Air New Zealand is one of Aotearoa’s best-known international brands. With its culture of innovation, high
standards, and vision for a sustainable future, Air New Zealand is the perfect partner to help us reinvent
mobility for everyday flight in New Zealand.”


Air New Zealand and Singapore Airlines welcome 5 October 2018
renewed regulatory approval for alliance

Air New Zealand and Singapore Airlines welcome the New Zealand Ministry of Transport’s decision this month
to extend authorisation of their joint venture alliance.

The renewed New Zealand regulatory approval is the final step in enabling the two flag carriers to extend their
alliance for a further five years until March 2024.

Air New Zealand Chief Strategy, Networks and Alliances Officer, Nick Judd, says the approval reaffirms the
airline’s alliance strategy.

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“Partnerships such as this have been key to successfully growing Air New Zealand’s international network
and delivering important benefits to our customers. Singapore Airlines has been a strong alliance partner and
we are excited at the opportunities the re-authorisation provides our two airlines,” says Mr Judd.

Singapore Airlines Senior Vice President Marketing Planning, Mr Tan Kai Ping says, “The decision to re-
authorise the alliance reinforces the benefits it has delivered to the New Zealand market in its first four years.
We look forward to continue working closely with our alliance partner Air New Zealand, to provide even more
travel options for our customers.”

Since the launch of the alliance in January 2015, the two airlines have increased flight frequency on routes
between New Zealand and Singapore, providing travellers with greater choice and convenience and
increasing seat capacity by more than 25 per cent.

The carriers will be launching a third daily service between Auckland and Singapore on 28 October 2018,
boosting capacity by 40 per cent on the route, with more than 165,000 additional seats annually. It will also
shorten connection times and improve connectivity to destinations in Europe, India and Southeast Asia
through the Singapore hub.

During peak months, the airlines will jointly operate a total of 35 return services a week between New Zealand
and Singapore, including services from Wellington and Christchurch.


US Navy expands engine overhaul contracts with Air New Zealand 1 October 2018

The United States Navy has awarded Air New Zealand Gas Turbines a USD$17 million contract to service
and overhaul 12 General Electric LM2500 Power Turbines that power some of the Navy’s cruisers.

The work will be carried out at the airline’s gas turbines facility in Auckland and is expected to commence in
October, concluding in the 2020 Financial Year.

Air New Zealand Chief Ground Operations Officer Carrie Hurihanganui says this latest contract is testament
to the high regard the US Navy has for the airline’s gas turbines division.

“This is a significant win for our Gas Turbines business, building on what has already become a strong
relationship with the US Navy to service the engine units that power much of its fleet,” says Ms Hurihanganui.

In early 2017 Air New Zealand Gas Turbines, along with competitor maintenance facilities, secured two
significant US Navy contracts which enable each party to bid for turbine overhaul work from a total pool of US
$126 million worth of work. Air New Zealand Gas Turbines was also independently awarded three smaller
contracts.

The airline last year secured USD$20 million worth of confirmed work covering 11 US Navy engine units. This
latest stream of work brings the total committed US Navy work to date to US$37 million for a total of 23
engines.


Air New Zealand’s new A321neo nears take-off 26 September 2018

Air New Zealand confirmed its first A321neo aircraft will enter commercial service in mid-November.

Air New Zealand is investing in 13 Airbus neo aircraft (seven A321neos and six A320neos) to replace the
A320 fleet that currently operates Tasman and Pacific Island services and a further seven Airbus A321neo
for anticipated domestic network growth. At current list prices, the combined value of the two aircraft orders
is NZD$2.8 billion.

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The new cabin layout for the international aircraft will have 165 seats on board the A320neos while the longer
A321neos will offer 214 seats – 46 more than the airline’s current international A320 fleet.

Air New Zealand Chief Executive Officer Christopher Luxon says the arrival of the new fleet is a significant
step in the airline’s short haul strategy.

“Australia and the Pacific Islands are a vitally important part of our Pacific Rim network. We operate up to
240 services each week with our Airbus narrow body aircraft. These new aircraft are key to enabling us to
grow our short haul network while offering our customers a great inflight experience,” says Mr Luxon.

Customer feedback has informed much of the fleet’s new-look cabin interior. The New Zealand leather
upholstered seats are 3cm wider at the middle seat and 1cm wider on the aisle and window. Their slim-line
and curved design means passengers sink further into the seat back creating up to 7 percent more usable
space when compared with the equivalent pitch on the existing fleet.

Other customer enhancements include around 25 percent more overhead locker space, a new Android based
inflight entertainment system with a larger screen and Wi-Fi connectivity.

New generation engines, fuel efficient Sharklet wing tip devices and approximately 25 percent more seats
mean the A321neos are expected to help deliver fuel savings and efficiencies of at least 15 percent compared
with the aircraft they’re replacing, helping reduce carbon emissions.

A second A321neo is also expected to enter service in November, while the airline’s first A320neo is
scheduled for February 2019. The remaining aircraft will follow at intervals through until late 2019. The
additional A321neos for the airline’s domestic network are expected to be delivered from 2020 to 2024.


Air New Zealand suspends Vietnam seasonal service 19 September 2018
Air New Zealand has elected not to operate its seasonal service between Auckland and Ho Chi Minh City,
Vietnam in 2019 due to inconsistent customer demand.
The twice weekly service, currently in its third season, has proved popular with Kiwi families in the key school
holiday periods however outside of that timeframe demand has not met expectations.
Air New Zealand Chief Revenue Officer Cam Wallace says the future of the route also has to be considered
in light of the ongoing challenges the airline is experiencing as a result of the issues affecting the Rolls-Royce
engines powering some of the global Dreamliner fleet.
“We expect to continue to have a need for flexible wide body aircraft capacity and this move will help ensure
we can deliver the rest of our northern summer schedule.
“While the current direct season will be our last, our customers can still continue to access Vietnam with Air
New Zealand on partner airlines via either Singapore or Hong Kong.”
Air New Zealand’s final service to Ho Chi Minh City operates on 23 October.