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

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




November 2019 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 2019 (29 days) compared with July 2020 (28 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% *20202019% * +
Passengers carried (000)1,4011,3771.7%7,2167,1282.1%
Revenue Passenger Kilometres(m)2,8722,7803.3%15,83115,3164.2%
Available Seat Kilometres (m)3,4443,3851.8%18,81918,3913.2%
Passenger Load Factor (%)83.4%82.1%1.3 pts84.1%83.3%0.8 pts
Ye a r-to-da te RASK
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Group
(0.2%)(0.5%)
Short Haul2.0% 2.2%
Long Haul(1.9%)(2.8%)
NOVEMBER
% change in reported RASK
(incl. FX)
% change in underlying RASK
(excl. FX)
FINANCIAL YTD
19 December 2019

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Operating statistics table




GroupFINANCIAL YTD
20192018% *20202019% *+
Passengers carried (000)1,4011,3771.7%7,2167,1282.1%
Revenue Passenger Kilometres(m)2,8722,7803.3%15,83115,3164.2%
Available Seat Kilometres (m)3,4443,3851.8%18,81918,3913.2%
Passenger Load Factor (%)83.4%82.1%1.3 pts84.1%83.3%0.8 pts
Short Haul TotalFINANCIAL YTD
20192018% *20202019% *+
Passengers carried (000)1,2401,2251.2%6,3286,2881.5%
Revenue Passenger Kilometres(m)1,2981,300(0.2%)7,1217,1041.1%
Available Seat Kilometres (m)1,5461,550(0.3%)8,5518,5770.5%
Passenger Load Factor (%)84.0%83.9%0.1 pts83.3%82.8%0.5 pts
DomesticFINANCIAL YTD
20192018% *20202019% *+
Passengers carried (000)9349211.4%4,6234,6180.9%
Revenue Passenger Kilometres(m)4834790.8%2,3602,3670.5%
Available Seat Kilometres (m)564576(2.1%)2,7912,865(1.8%)
Passenger Load Factor (%)85.6%83.1%2.5 pts84.6%82.6%2.0 pts
Tasman / PacificFINANCIAL YTD
20192018% *20202019% *+
Passengers carried (000)3053040.5%1,7041,6702.9%
Revenue Passenger Kilometres(m)
815822(0.8%)4,7614,7371.4%
Available Seat Kilometres (m)9829740.7%5,7605,7131.7%
Passenger Load Factor (%)83.0%84.3%(1.3 pts)82.7%82.9%(0.2 pts)
Long Haul TotalFINANCIAL YTD
20192018% *20202019% *+
Passengers carried (000)1611535.5%8898406.7%
Revenue Passenger Kilometres(m)1,5751,4796.4%8,7108,2127.0%
Available Seat Kilometres (m)1,8981,8343.5%10,2689,8135.5%
Passenger Load Factor (%)83.0%80.7%2.3 pts84.8%83.7%1.1 pts
Asia / Japan / SingaporeFINANCIAL YTD
20192018% *20202019% *+
Passengers carried (000)72686.8%38934115.3%
Revenue Passenger Kilometres(m)6476076.7%3,4533,03714.7%
Available Seat Kilometres (m)8047674.9%4,1253,73111.5%
Passenger Load Factor (%)80.5%79.1%1.4 pts83.7%81.4%2.3 pts
Americas / UKFINANCIAL YTD
20192018% *20202019% *+
Passengers carried (000)88854.5%4994990.9%
Revenue Passenger Kilometres(m)9288736.3%5,2575,1762.4%
Available Seat Kilometres (m)1,0941,0672.5%6,1436,0821.9%
Passenger Load Factor (%)84.8%81.8%3.0 pts85.6%85.1%0.5 pts
NOVEMBER
NOVEMBER
NOVEMBER
NOVEMBER
NOVEMBER
NOVEMBER
NOVEMBER

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Market announcements
(during the period 27 November 2019 to 18 December 2019)

Air New Zealand announces Director resignation 17 December 2019

Air New Zealand advises that Sir John Key will retire from its Board of Directors on March 31.

Chairman Dame Therese Walsh says Sir John indicated earlier this year that 2020 would possibly be his last
as a Director due to increasing commitments on his professional time in New Zealand and overseas.

Dame Therese says Sir John has made a significant contribution to Air New Zealand.

“Sir John’s outstanding commercial acumen, international perspectives and stakeholder network have been
incredibly valuable to Air New Zealand and we are fortunate to have had him as a member of our Board,” she
says.

Sir John says it was not an easy decision to step away from his Air New Zealand Directorship.

“Air New Zealand is a world class company that all Kiwis can be proud of. The fortunes of the airline and our
nation are inextricably linked, so having had the opportunity to support it firstly as Prime Minister and Minister
of Tourism and then as a Director has been fantastic. The airline is in great hands under Dame Therese,
incoming Chief Executive Officer Greg Foran, a top Executive team and 12,500 staff committed to delivering
outstanding uniquely Kiwi experiences every day.”

Air New Zealand will advise a replacement Director for Sir John in due course.

Air New Zealand confirms start date for Chief Executive Officer 16 December 2019

Air New Zealand has announced that Greg Foran will officially commence his duties as Air New Zealand Chief
Executive Officer on 3 February 2020.

Greg is currently in the final stages of concluding his role as President and Chief Executive Officer of Walmart
U.S., before spending time with family and friends and settling his family in Auckland.

Air New Zealand 2019 Databook 10 December 2019

Air New Zealand’s 2019 Databook was released to the market on 10 December 2019. For a copy of this
document, please click here
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Media Releases
(during the period 27 November 2019 to 18 December 2019)

Air New Zealand opens new lounge in Nelson 13 December 2019

Air New Zealand has opened its new regional lounge in Nelson. The lounge, which will cater for around 130
customers, has almost double the seating of the previous space.

It is located on Level 1 of the new Nelson Airport terminal and has a number of different zones available to
customers – including a café, buffet and light refreshments, a self-service drinks station, as well as business,
lounge and quiet areas.

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Air New Zealand General Manager Customer Experience Nikki Goodman says the airline is delighted to open
a new space for customers travelling out of Nelson.

“This beautiful lounge is a haven for customers, allowing them to sit and relax or get some work done ahead
of their flight. It also has impressive views overlooking the runway and out to the mountains.

“We look forward to welcoming our customers to this impressive and significantly larger space in the new
state-of-the art terminal at Nelson Airport and it’s great to have it up and running before Christmas.”

The new lounge is part of a $60 million investment in lounges throughout New Zealand over the next two
years. Most recently the airline opened its new triple in size regional lounge at Auckland Airport and there are
also plans underway to open new lounges in New Plymouth and Napier.


Air New Zealand secures capacity to maintain international 12 December 2019
summer schedule

Air New Zealand alliance partner Cathay Pacific will take over operations of the Hong Kong-Auckland return
service for most of the next three months.

The move allows Air New Zealand capacity flexibility in its international operations as it deals with the impact
of issues with the Rolls-Royce engines on its Boeing 787-9 aircraft.

Cathay Pacific will introduce an additional Airbus A350-900 aircraft on the Auckland-Hong Kong route from 6
January to 19 January 2020. The 280-seat aircraft will operate daily and has Business, Premium Economy
and Economy seating available for customers.

Cathay Pacific will also operate a Boeing 777-300ER on the same route from 1 February until 28 March 2020.
The 294-seat aircraft also has Business, Premium Economy and Economy cabins and will operate daily in
February and five times a week in March. Customers booked to travel with Air New Zealand on this route
during these two periods will be automatically transferred to these services for both periods.

Air New Zealand Senior Manager Customer Care and Communications Doug Grant says the airline is working
hard to minimise the impact to customers over the summer months.

“The Cathay Pacific Airbus A350-900 and Boeing 777-300ER are modern aircraft of a similar high standard
to our Air New Zealand fleet, so we know customers will receive the high level of service Cathay Pacific is
known for.

“This aircraft capacity will help fill the gaps in our schedule to get people to their destinations in the coming
weeks and it’s been beneficial to have our alliance partner Cathay Pacific step in and assist us at this busy
time.”

Air New Zealand will directly contact customers affected by these changes in the coming week. Customers
booked via a travel agent (including online travel agents) will be contacted by their booking agent. The latest
information will also be published on the Travel Alerts section of the Air New Zealand website and customers
are encouraged to check this, before calling the airline’s contact centre.

Air New Zealand wins Deloitte Top 200 Sustainable Business 6 December 2019
Leadership award

Air New Zealand has won the Sustainable Business Leadership award at the Deloitte Top 200 awards in
Auckland.

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The Sustainable Business Leadership award highlights and honours businesses that are working towards
creation of long term environmental, social and economic value. The judging criteria considers governance,
leadership and accountability, long term perspective and purpose, explicit integration of ESG (Environment,
Social, Governance) considerations and investments, and programmes and projects to support sustainable
development.

Air New Zealand Head of Sustainability Lisa Daniell says the award reflects the airline’s commitment to
sustainability right across the business.

“We’re delighted to have received this award – it’s recognition of the hard work of more than 12,000
employees who are a huge driver of our sustainability agenda. While we still have a long way to go,
sustainability principles are increasingly impacting our purchasing decisions, customer experience offerings
and day-to-day operations.

“We don’t operate in a vacuum, so our partners and suppliers also play a really big role in helping us achieve
our sustainability goals, for example when it comes to reducing waste and plastic. Of course, reducing our
carbon footprint remains our single biggest challenge and our dedicated carbon reduction programme is
helping to address this.”

Companies from the year’s Deloitte Top 200 Index, Deloitte Top 30 Financial Institutions Index and Deloitte
Top 10 Māori businesses are eligible for the Sustainable Business Leadership award.

Air New Zealand’s 2019 sustainability report is available to view on the airline’s website
.

Air New Zealand trials edible coffee cups as it explores innovative 4 December 2019
waste reduction measures

Air New Zealand has begun trialling edible coffee cups with customers in the air and on the ground as it
explores new and innovative ways to meet its sustainability challenges.

The airline currently serves more than eight million cups of coffee each year.

Air New Zealand Senior Manager Customer Experience Niki Chave says that while the airline’s current cups
are compostable, the ultimate goal would be to remove these totally from landfills.

“We’ve been working in partnership with innovative New Zealand company ‘twiice’ to explore the future of
edible coffee cups, which are vanilla flavoured and leakproof. The cups have been a big hit with the customers
who have used these and we’ve also been using the cups as dessert bowls,” Ms Chave says.

‘twiice’ co-founder, Jamie Cashmore says the edible cups could play a big role in demonstrating to the world
that new and innovative ways of packaging are achievable.

“It’s terrific that Air New Zealand has partnered with us to showcase to its customers and the world that a little
bit of Kiwi ingenuity and innovation could have a positive impact on the environment” Mr Cashmore says.

The ‘twiice’ edible cup trial backs up Air New Zealand’s recent switch to plant-based cups on board all aircraft
and in lounges. The plant-based cups are made from paper and corn instead of plastic, which enables the
cup to break down in a commercial composter. Switching to plant-based cups is expected to prevent around
15 million cups from going to landfill annually. The airline is also encouraging customers to bring their own
reusable cups on board aircraft and into its lounges.