Air New Zealand Fuel Hedge Disclosure as at 20 Nov 2018

Units
FY19 Q2
FY19 Q3
FY19 Q4
FY20 Q1
FY20 Q2
FY19 H1
FY19 H2
FY20 H1
Oct-Dec
Jan-Mar
Apr-Jun
Jul-Sept
Oct-Dec Jul-Dec 2018 Jan-Jun 2019 Jul
-Dec 2019
Brent Collars
Volume
Barrels
1,747,500
1,487,500
1,462,500
1,050,000
175,000
3,545,0
00
2,950,000
1,225,000
Ceiling Price USD
70.30
74.88
77.66
77.78
76.39
68.17
76.26
77.58
Floor Price USD
55.03
60.24
62.74
63.10
61.75
53.16
61.48
62.91
Brent Swaps
Volume
Barrels
135,000
360,000
135,000
360,000
Price
USD
68.10
68.10
68.10
68.10
Singapore Jet Collars
Volume
Barrels
22,500
112,500
135,000
Ceiling Price USD
99.00
99.00
99.00
Floor Price USD
82.00
82.00
82.00
Barrels
1,882,500
1,870,000
1,575,000
1,050,000
175,000
3,680,000
3,44
5,000
1,225,000
Barrels
2,368,603
2,454,928
2,199,225
2,430,000
2,440,000
4,728,460
4,
654,153
4,870,000
79%
76%
72%
43%
7%
78%
74%
25%
USD
9,528,928
(3,906,523)
(5,599,791)
(5,078,830)
(942,229)
26,901,92
8
(9,506,314)
(6,021,059)
USD
(5,150,350)
(5,981,625)
(5,189,625)
(2,772,625)
(447,250)
(9,692,
800) (11,171,250) (3,219,875)
USD
4,378,578
(9,888,148) (10,789,416) (7,851,455)
(1,389,479)
17,209
,128 (20,677,564) (9,240,934)
Brent Call Spreads
(3)
Volume
Barrels
337,500
562,500
900,000
Bought Call USD
71.50
71.50
71.50
Sold Call
USD
76.50
76.50
76.50
Bought Brent Puts
(4)
Volume
Barrels
1,050,000
900,000
112,500
1,162,500
1,012,500
Strike Price USD
52.50
52.50
52.50
52.50
52.50
Jet-Brent Crack Spreads
(5)
Volume
Barrels
500,000
412,500
312,500
612,500
912,500
925,000
Price
USD
15.61
15.36
16.62
18.00
15.49
17.53
Notes:Brent spot was US$63 and 12 month Brent was US$63. As at 20 No
vember 2018, Air New Zealand had no WTI hedges.
Singapore Jet Spot was US$79 and 12 month Singapore Jet was US$
81.
(
1
)

Compensation from fuel hed
g
es is the sum of the mark-to-
market value of all fuel hed
g
es as at 20 November 2018.
(3) Brent Call Spreads lower the ce
iling price of existing collar structures.
(4) Bought Brent Puts allow Air New Zealand to benefit if oil
prices fall under the strike price.
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 and Sing
apore Jet.
Page 1 of 2
Purchase cost of optionsNet compensation from hedges (2)
(2) Net compensation from fuel
hedges represents the unrealised
gains and losses on fuel hedges. These gains and losses w
ill be acc
ounted for in line with Air New Zealand Limited’s fuel instrume
nt accounting policy. The effective portion of changes in the
intrinsic value and time value of fuel derivatives is recognise
d through Other Comprehensive Income. Any accounting ineffectiv
eness is recognised through earnings.
(5) Jet-Brent Crack Spreads lock in the margin between the Sing
apore Jet and Brent Crude prices; Air New Zealand has entered i
nto Jet-Brent Crack Spreads to actively manage the volat
ility o
f the spread between Singapore Jet and Brent Crude prices.
Air New Zealand Limited
Fuel Hedge Position as at 20 November 2018
Total hedged volumeEstimated fuel consumptionHedged volume as proportion o
f total
Compensation from fuel hedges (1)

Page 2 of 2
$1,100 $1,150 $1,200 $1,250 $1,300 $1,350 $1,400 $1,450 $1,500 $1,550 $1,600
$65.0
$70.0
$75.0
$80.0
$85.0
$90.0
$95.0
$100.0
$105.0
NZD Cost of Fuel (millions)
Forward Singapore Jet Fuel price** (USD/barrel)
Forward looking fuel cost* sensitivity(based on hedging profile as at 20 November 2018)
Hedged
Unhedged
* Assumes NZD/USD rate of 0.66 on a forward looking basis.** Fuel cost assuming an average Singapore Jet Fuel price for t
he remainder of the 2019 financial year.