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

1

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




November 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).
1
Reported RASK (unit passenger revenue per available seat kilometre) is inclusive of foreign currency impact, and underlying RASK excludes foreign
currency impact.
.
Group traffic summary
2018
2017
% *
2019
2018
% *+
Passengers carried (000)
1,377
1,322
4.2%
7,128
6,837
5.1%
Revenue Passenger Kilometres(m)
2,780
2,677
3.8%
15,317
14,594
5.8%
Available Seat Kilometres (m)
3,385
3,233
4.7%
18,391
17,738
4.5%
Passenger Load Factor (%)
82.1%
82.8%
(0.7 pts)
83.3%
82.3%
1.0 pts
Year-to-date RASK
1
Group
3.1%
1.7%
Short Haul
1.1%
0.6%
Long Haul
4.4%
1.8%
NOVEMBER
FINANCIAL YTD
% change in reported RASK
(incl. FX)
% change in underlying RASK
(excl. FX)
18 December 2018

2

Operating statistics table

GroupFINANCIAL YTD
20182017% *20192018% *+
Passengers carried (000)1,3771,3224.2%7,1286,8375.1%
Revenue Passenger Kilometres(m)2,7802,6773.8%15,31714,5945.8%
Available Seat Kilometres (m)3,3853,2334.7%18,39117,7384.5%
Passenger Load Factor (%)82.1%82.8%(0.7 pts)83.3%82.3%1.0 pts
Short Haul TotalFINANCIAL YTD
20182017% *20192018% *+
Passengers carried (000)1,2251,1714.6%6,2886,0205.3%
Revenue Passenger Kilometres(m)1,3001,2117.3%7,1046,6228.2%
Available Seat Kilometres (m)1,5501,4477.2%8,5778,0687.2%
Passenger Load Factor (%)83.9%83.8%0.1 pts82.8%82.1%0.7 pts
DomesticFINANCIAL YTD
20182017% *20192018% *+
Passengers carried (000)9218923.3%4,6184,4614.4%
Revenue Passenger Kilometres(m)4794545.3%2,3672,2715.1%
Available Seat Kilometres (m)5765494.9%2,8652,7983.2%
Passenger Load Factor (%)83.1%82.8%0.3 pts82.6%81.2%1.4 pts
Tasman / PacificFINANCIAL YTD
20182017% *20192018% *+
Passengers carried (000)3042798.9%1,6701,5598.0%
Revenue Passenger Kilometres(m)8227578.5%4,7374,3519.8%
Available Seat Kilometres (m)9748988.6%5,7135,2709.3%
Passenger Load Factor (%)84.3%84.4%(0.1 pts)82.9%82.6%0.3 pts
Long Haul TotalFINANCIAL YTD
20182017% *20192018% *+
Passengers carried (000)1531511.1%8408173.7%
Revenue Passenger Kilometres(m)1,4791,4660.9%8,2137,9723.9%
Available Seat Kilometres (m)1,8341,7862.7%9,8139,6702.3%
Passenger Load Factor (%)80.7%82.1%(1.4 pts)83.7%82.4%1.3 pts
Asia / Japan / SingaporeFINANCIAL YTD
20182017% *20192018% *+
Passengers carried (000)68663.3%3413333.3%
Revenue Passenger Kilometres(m)6075863.5%3,0372,9703.1%
Available Seat Kilometres (m)7677334.6%3,7313,7490.3%
Passenger Load Factor (%)79.1%79.9%(0.8 pts)81.4%79.2%2.2 pts
Americas / UKFINANCIAL YTD
20182017% *20192018% *+
Passengers carried (000)8585(0.6%)4994844.0%
Revenue Passenger Kilometres(m)873880(0.8%)5,1765,0024.3%
Available Seat Kilometres (m)1,0671,0531.3%6,0825,9213.6%
Passenger Load Factor (%)81.8%83.5%(1.7 pts)85.1%84.5%0.6 pts
NOVEMBER
+ 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).
* % 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.
NOVEMBER
NOVEMBER
NOVEMBER
NOVEMBER
NOVEMBER
NOVEMBER

3


Media Releases

First ever service between Invercargill and Auckland 14 December 2018

Air New Zealand is set to trial a direct service between Invercargill and Auckland using its Airbus
A320 jet aircraft from the second half of 2019.

The trial service will operate five days a week, departing Invercargill at 6am and arriving in Auckland
at 7:55am. The Auckland-Invercargill service will depart at 7:35pm. With a flight time of
approximately two hours, the new service will be the longest domestic Air New Zealand flight.

Air New Zealand Head of Regional Affairs Reuben Levermore says the airline is excited to launch
a direct Invercargill-Auckland service next year using its A320 jet aircraft.

“The Southland community has told us a direct Invercargill-Auckland service is important and we’ve
been working closely with stakeholders to achieve this. The challenge will be for the community to
support the trial of a direct service to ensure it’s sustainable, and we’re confident they’ll do so.”

Air New Zealand will announce the commencement date for the new service when tickets go on
sale in January.


Air New Zealand opens new lounge in Tauranga 14 December 2018

Air New Zealand has opened its new regional lounge at Tauranga Airport.The lounge will cater for
around 90 customers, which is nearly double the seating offered previously.

The significantly larger lounge is located on the upper floor of the airport terminal with windows
overlooking the runway. It has a number of different zones to meet the needs of customers,
including a café, buffet and light refreshments, a self-service drinks station, as well as business,
lounge and quiet areas.

Air New Zealand General Manager Customer Experience Anita Hawthorne says it’s fantastic to
have a new space for travellers out of Tauranga.

“Tauranga is a popular port on the airline’s domestic network. Just last month we announced 10
additional one-way services a week on both our Tauranga-Auckland and Tauranga-Wellington
routes, so we look forward to welcoming customers to our new lounge before they fly.”

The new lounge is part of a $60 million investment in lounges throughout New Zealand over the
next two years. This includes the construction of a new, much larger regional lounge at Auckland
Airport and a refurbishment of the airline’s domestic lounges at Auckland and Wellington airports.
Plans are also underway for new regional lounges in Christchurch, Nelson and New Plymouth.

4

Air New Zealand to operate Christchurch – Singapore services 7 December 2018

Air New Zealand and Singapore Airlines will deliver South Island travellers greater choice and
increased frequency as part of their joint venture alliance, with Air New Zealand to operate flights
between Christchurch and Singapore from December 2019.

The airline will operate a five times weekly seasonal service between Christchurch and Singapore
from 1 December 2019 to 22 February 2020 using new configuration Boeing 787-9 Dreamliner
aircraft. Up to now, Singapore Airlines has been operating the seasonal service three times a week,
in addition to its daily service between Christchurch and Singapore.

The increase in seasonal services to Christchurch follows approval for the two airlines 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 changes have
been introduced to meet growing demand for alliance services.

“We’re deploying our larger Boeing 787-9 Dreamliner aircraft on the route which will increase
capacity as well as add more premium seating to the route. With the growth in frequency of the
seasonal service to five times weekly, these changes will ultimately deliver greater choice, great
connectivity beyond Singapore and increased connections into the domestic New Zealand network.

“We’d also like to acknowledge our partners in Christchurch – ChristchurchNZ and Christchurch
Airport – for their support as we’ve gone about establishing these services,” says Mr Judd.


Summer of free Wi-Fi for Air New Zealand customers 3 December 2018

Air New Zealand will offer complimentary Wi-Fi to customers on all Wi-Fi enabled flights this
summer.

The airline is rolling out Wi-Fi across its international network, with the service now available on four
of its Boeing 777-300 aircraft and five of its Boeing 777-200 aircraft. These aircraft predominantly
operate the airline’s trans-Tasman, US and London routes.

Air New Zealand Chief Revenue Officer Cam Wallace says the airline will spread some good cheer
this Christmas with free Wi-Fi from 1 December to 28 February next year.

“We’ve had great customer interest in our inflight Wi-Fi product since we first started rolling it out on
our international jet fleet in October last year. Offering free Wi-Fi over the summer period is a great
way for our customers to be able to stay connected with friends and family.”

Standard Wi-Fi on Air New Zealand services is charged at $30 NZD for a full flight to Australia and
the Pacific Islands and $40 for the duration of a flight to North America, Europe and Asia
destinations. There is also a 1-hour pass available for $9 on North America, Europe and Asia
services.

5

First non-stop air service between New Zealand and Chicago 30 November 2018
takes flight

Air New Zealand’s inaugural flight between Auckland and Chicago departed from Auckland
International Airport in late November.

Air New Zealand Chief Executive Officer Christopher Luxon, who travelled on the inaugural service,
said the airline’s new Auckland-Chicago service means exciting new opportunities for travellers to
explore the United States’ third biggest city, along with more of the East Coast of the US and
Canada.

“We’re excited to offer our customers a direct link between New Zealand and Chicago. With our
alliance partner United operating more flights out of its hub of O’Hare International Airport than any
other airline, the new service to Chicago will provide customers with convenient one-stop codeshare
connections to around 100 destinations across the US.

“New Zealand already welcomes around 340,000 visitors annually from the US and we anticipate
this number will grow with the introduction of this new service. We expect the route will contribute
around NZD$70 million annually to our economy – and we know 50 percent of spending by US
visitors is done outside the main centres,” says Mr Luxon.

Chicago is an exciting destination with a lot to offer from its fascinating history, world-class museums
and stunning architecture to internationally-renowned jazz and blues scene, and famous dishes
including the iconic deep dish pizza.

Air New Zealand’s direct Auckland-Chicago service, operated by its Boeing 787-9 Dreamliner
aircraft, will depart Auckland on Wednesday, Friday and Sunday.

Lonely Planet recently named the new nonstop service one of the most exciting new airline routes
of 2019 in its Where to fly in 2019? The 10 most exciting new flight routes list.