Air New Zealand Investor Update (Op Stats) – June 2019

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Contents
• June 2019 traffic highlights
• Operating statistics table
• Recent market announcements and media releases


June 2019 highlights














* % change is based on numbers prior to rounding
+ The month's 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 June 2018 (34 days) compared with June 2019 (35 days). This
is because Air New Zealand operates on a 4,4,5 accounting calendar but closes the annual accounts on 30 June.
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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.

Group traffic summary
20192018% * + 20192018
% *
Passengers carried (000)1,5761,4714.0%17,73816,9664.5%
Revenue Passenger Kilometres(m)3,4233,2203.3%38,57336,6625.2%
Available Seat Kilometres (m)4,1083,9680.6%46,02944,2744.0%
Passenger Load Factor (%)
83.3%81.1%2.2 pts83.8%82.8%1.0 pts
Ye a r-to-da te RASK
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Group1.6% 0.6%
Short Haul0.6% 0.4%
Long Haul2.7% 0.7%
JUNEFINANCIAL YTD
% change in reported RASK
(incl. FX)
% change in underlying RASK
(excl. FX)
29 July 2019

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Operating statistics table



GroupFINANCIAL YTD
2019
2018% *+
2019
2018% *
Passengers carried (000)
1,5761,4714.0%17,73816,9664.5%
Revenue Passenger Kilometres(m)3,4233,2203.3%
38,573
36,6625.2%
Available Seat Kilometres (m)4,1083,9680.6%46,02944,2744.0%
Passenger Load Factor (%)83.3%81.1%2.2 pts83.8%82.8%1.0 pts
Short Haul TotalFINANCIAL YTD
20192018% *+ 20192018% *
Passengers carried (000)
1,3791,2913.7%15,557
14,8874.5%
Revenue Passenger Kilometres(m)1,4841,4410.1%17,15216,3035.2%
Available Seat Kilometres (m)1,8221,837(3.6%)20,74419,8684.4%
Passenger Load Factor (%)81.5%78.4%3.1 pts82.7%82.1%0.6 pts
DomesticFINANCIAL YTD
20192018% *+ 20192018
% *
Passengers carried (000)1,0259544.3%11,513
11,0893.8%
Revenue Passenger Kilometres(m)5124793.9%5,9575,7194.1%
Available Seat Kilometres (m)627
6090.0%7,1046,9052.9%
Passenger Load Factor (%)81.7%78.6%
3.1 pts83.9%82.8%1.1 pts
Tasman / Pacific
FINANCIAL YTD
20192018% *+ 20192018
% *
Passengers carried (000)3543372.0%4,0443,7986.5%
Revenue Passenger Kilometres(m)
972
962(1.8%)11,19510,584
5.8%
Available Seat Kilometres (m)
1,1951,228(5.4%)13,64012,9635.2%
Passenger Load Factor (%)81.3%78.4%2.9 pts82.1%81.6%0.5 pts
Long Haul TotalFINANCIAL YTD
20192018% *+ 20192018
% *
Passengers carried (000)1971806.3%2,1812,0794.9%
Revenue Passenger Kilometres(m)1,9391,7795.9%21,42120,359
5.2%
Available Seat Kilometres (m)2,2852,1314.1%25,28524,4063.6%
Passenger Load Factor (%)84.8%
83.4%1.4 pts84.7%83.4%1.3 pts
Asia / Japan / SingaporeFINANCIAL YTD
20192018% *+ 20192018
% *
Passengers carried (000)81
63
26.2%9148379.2%
Revenue Passenger Kilometres(m)72256025.2%8,140
7,4679.0%
Available Seat Kilometres (m)90772621.2%9,699
9,1695.8%
Passenger Load Factor (%)79.6%77.1%2.5 pts83.9%
81.4%2.5 pts
Americas / UKFINANCIAL YTD
20192018% *+ 20192018% *
Passengers carried (000)116117(4.4%)1,2671,2422.0%
Revenue Passenger Kilometres(m)1,2171,219
(3.0%)13,28112,8923.0%
Available Seat Kilometres (m)1,3791,405(4.7%)15,586
15,2372.3%
Passenger Load Factor (%)88.3%86.7%1.6 pts85.2%84.6%0.6 pts
JUNE
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JUNE
* % change is based on numbers prior to rounding
+ The month's 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 June 2018 (34 days) compared with June 2019 (35 days). This is because Air New Zealand operates on a 4,4,5
accounting calendar but closes the annual accounts on 30 June.
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 27 June 2019 to 28 July 2019)


Annual Meeting and Nomination of Directors 10 July 2019

Annual Shareholders’ Meeting

Air New Zealand Limited advises that its Annual Shareholders’ Meeting will be held at the Hunua
Rooms, Aotea Centre, 50 Mayoral Drive, Auckland, on Wednesday 25 September 2019 at 2.00pm.
In additional to our usual physical meeting, Air New Zealand will also be offering shareholders the
choice to attend and participate in the Annual Meeting via an online platform. Details of registration
for those who wish to participate online will be included in the Notice of Meeting sent after the 2019
Annual Results on 22 August 2019.

Nomination of Directors

Nominations for the position of director may be made on or before 5pm Thursday 25 July 2019.
Nominations must be made in writing by a security holder entitled to attend and vote at the Meeting
and should be directed to the Company Secretary at Air New Zealand, Private Bag 92007, Auckland
1142. (This announcement is made pursuant to NZX Listing Rule 2.3.)


Media Releases
(during the period 27 June 2019 to 28 July 2019)

Air New Zealand boosts Bali 19 July 2019

Air New Zealand is giving its Bali seasonal service a boost in 2020, increasing capacity on the route
by 80 percent, or 30,000 additional seats, compared with the current season.

The airline currently operates three services per week between Auckland and Bali’s Denpasar
International Airport from late June to mid-October using Boeing 787-9 Dreamliner aircraft,
increasing up to four services per week during peak periods such as the school holidays.

Next year the airline will operate its seasonal services from 11 April through to 24 October with up
to six services per week (subject to regulatory approvals).

Air New Zealand Chief Revenue Officer Cam Wallace says Bali has continued to be a popular
holiday spot for Kiwis.

“By extending our flying season by more than two months, ultimately putting on close to 50 extra
return flights, it’s going to be easier than ever for Kiwis to experience the beautiful and diverse
destination that is Bali,” says Mr Wallace.

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Air New Zealand doubles down on plastic waste reduction 8 July 2019

Air New Zealand has committed to increasing the number of single-use plastic items it will remove
from its operation this year by more than double, from 24 million to nearly 55 million items.

To mark Plastic Free July the airline has removed individual plastic water bottles from its Business
Premier and Premium Economy cabins, as well as from its Works Deluxe offering on Tasman and
Pacific Island services under five hours in duration. This is expected to divert more than 460,000
bottles from landfill annually and reduce carbon emissions by more than 300,000 kilograms per year
by reducing weight on the aircraft.

Individual plastic sauce packets are being removed from Business Premier cabins on mainland
North America and Hong Kong services, and these will be eliminated entirely from the global
network by the end of October. Customers will instead be served sauce in reusable dishes which is
expected to prevent around 200,000 plastic packets going to landfill each year.

The airline is also set to roll out coffee cups made from plants rather than plastic across its domestic
and international networks from October, while plastic water cups will be transitioned to recyclable
alternatives from September. The previous commitment targeted coffee and water cups on Air New
Zealand’s domestic network where the majority of cups are used, however, the scope has now
expanded to introduce the lower impact cups across the international network, lifting the total
number of cups being replaced this year from 14.7 million to 44.5 million.

Air New Zealand’s Acting Head of Sustainability Anna Palairet says the airline is focused on
reducing the amount of single-use plastic products it purchases at source, as the lack of composting
infrastructure in New Zealand at present poses a challenge.

“Single-use plastic is a highly topical and visible issue for us and our customers, so we’re really
pleased to be able to share this progress to celebrate Plastic Free July. The lack of composting
infrastructure available in New Zealand is a challenge so we have been focused on reducing the
amount of single-use plastic products we purchase in the first place.

“It’s great to see more and more customers are bringing their reusable drink bottles and keep cups
on board, and we encourage people to do this – our cabin crew team is happy to fill these.”


Air New Zealand secures fourth US Navy engine overhaul contract 5 July 2019

Air New Zealand’s Gas Turbines business has won a fourth significant contract to service ten
additional US Navy LM2500™ Power Turbines.

The latest contract, worth more than USD$17 million, will see the Auckland-based Gas Turbines
team carry out maintenance on the LM2500™ Gas Turbines which power the US Navy's cruiser
fleet.

The Air New Zealand Gas Turbines business has secured USD$80 million of confirmed work
covering 39 engine units since the power turbine contracts were first opened for tender by the US
Navy in 2017.

To date, the Gas Turbines business has delivered seven overhauled units back to the US Navy,
with 13 units currently in work and another nine onsite ready for induction. The 10 additional units

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awarded in the latest contract will arrive in New Zealand late August and the overall body of work
is expected to conclude in 2021.

Air New Zealand’s Chief Ground Operations Officer Carrie Hurihanganui says the contracts are
competitively bid for and the win only solidifies the airline’s longstanding relationship with the US
Navy.

“This fourth contract win is a credit to the Gas Turbines team and further strengthens our more than
20-year relationship with the US Navy. It’s a clear indicator of the calibre of work the team produces.”

Air New Zealand Gas Turbines is a business unit of Air New Zealand and a General Electric
“Authorised LM2500™ Service Provider” providing LM2500™ gas turbine overhaul and repair
services to clients globally across a range of industries. The business began sourcing work in the
industrial and marine sector more than 35 years ago and has since supported several of the world’s
navies, offshore oil and gas platform operators and power generation companies.