Air New Zealand 2020 Annual Results

Media release
27 August 2020

Air New Zealand adjusted its business quickly to
manage the impact of Covid-19

Air New Zealand today announces its 2020 result, affirming the unprecedented effect of the Covid-
19 pandemic on its business and the global aviation industry following extensive travel and border
restrictions which commenced from March.

Air New Zealand is reporting a loss before other significant items and taxation of $87 million
1
for the
2020 financial year, compared to earnings of $387 million in the prior year.

Despite reporting a strong interim profit of $198 million
2
for the first six months of the financial year,
and seeing positive demand on North American and regional routes early in the second half, Covid-
related travel restrictions resulted in a 74 percent drop in passenger revenue from April to the end of
June compared to the prior year, which drove the airline’s operating losses.

Statutory losses before taxation, which include $541 million of other significant items, were $628
million, compared to earnings of $382 million last year. Non-cash items of $453 million reflected most
of the other significant items, including the $338 million aircraft impairment charge related to
grounding of the Boeing 777-200ER fleet for the foreseeable future.

The airline has responded to this crisis with urgency, including securing additional liquidity,
structurally reducing its cost base and deferring significant capex spend, whilst ensuring that the
business remains well positioned to grow profitably when travel restrictions are eventually removed
and customer demand returns.

Quick and decisive action in response to Covid-19

Air New Zealand’s Chairman Dame Therese Walsh says she is proud of the way the business has
responded to this crisis, acting with speed and agility to lower the cost base, and pivoting quickly to
ramp up domestic and cargo services to help keep the New Zealand economy moving. These actions,
along with the strategic review the airline has undertaken in parallel to managing this crisis, ensure
that Air New Zealand remains in a strong and competitive position when travel restrictions lift.


“The 2020 financial year has been a year of stark contrast. Air New Zealand had a solid start to the
year and was focused on driving profitable growth into the second half. We were also preparing to
launch the first ever non-stop link between New Zealand and New York and had announced several
exciting innovations in the customer experience space.

“Now, nearly 6 months following the declaration of a global pandemic, the $87 million loss we are
reporting today, our first loss in 18 years, reflects the quick and severe impact Covid-19 has had on
our business” says Dame Therese.

“Faced with such a swift decline in revenue as lockdown restrictions were implemented and borders
were closed, we took immediate steps to secure $900 million in additional funding, and drastically

1
Earnings before other significant items and taxation represent Earnings stated in compliance with NZ IFRS (Statutory Earnings) after
excluding items which due to their size or nature warrant separate disclosure to assist with understanding the underlying financial
performance of the Group. Earnings before other significant items and taxation is reported within the Group’s audited annual financial
statements.
2
Represents Earnings before other significant items and taxation.

reduced our cash burn in the knowledge that, for a time, we would be a much smaller business than
we had been pre-Covid” Dame Therese says.

In preparation for the eventual recovery of demand, the Board has recently endorsed a refresh of the
airline’s strategy which is focused on sustaining competitive strengths and ensuring long-term
positive outcomes for customers, staff, the broader community and shareholders.

“The Board and I are fully supportive of the new strategy that Greg and his Executive team have been
working on in parallel to dealing with this crisis. We have a clear focus on where our business is
heading, and I am confident Air New Zealand will be ready when the recovery occurs” Dame Therese
says.

Chief Executive Officer Greg Foran will provide more context at the airline’s Annual Shareholders’
Meeting on 29 September, which will include a discussion of the airline’s network focus,
enhancements to its Airpoints
TM
loyalty programme, sustainability focus and digital priorities.


Liquidity and cash burn update

Short-term liquidity as at 25 August 2020 was approximately $1.1 billion, made up of cash and the
$900 million standby loan facility from the New Zealand Government. Due to the strong cash position
pre-Covid-19, swift action taken by management to reduce cash burn and a better than expected
return of domestic demand after the initial lockdown was lifted in New Zealand, the airline has not yet
utilised the standby loan facility. However, it expects to start drawing on these funds in the coming
days.

Cash burn averaged approximately $175 million per month from April to June, including higher than
average refunds, redundancy payments and fuel hedge close out costs, but this reduced to $85
million for July.

The airline is estimating the go forward average monthly cash burn to be in the range of $65 million
to $85 million while international travel restrictions remain and assuming resumption of domestic
travel with no social distancing requirements, as well as a continuation of government-supported
cargo flights.


Dividend and capital structure update

The Board is focused on preserving Air New Zealand’s liquidity across a range of potential demand
recovery scenarios. Given current financial pressures as the airline manages the impact of Covid-19,
the Board has determined that it will not declare a final dividend for the 2020 financial year.

The Government has recently reaffirmed the Crown’s long-standing commitment to maintaining its
majority shareholding in Air New Zealand, having regard to the unique and critical role the company
has in New Zealand’s economy and society. This is reflected in the Crown loan facility that provides
Air New Zealand with liquidity support whilst the airline works through to a permanent solution. Air
New Zealand is engaging constructively with the Crown as it continues to assess its capital structure
and funding needs.


Focused on operational resilience

Chief Executive Officer Greg Foran says Covid-19 has highlighted once again that the core strength
of the airline is its people and their ability to respond to change quickly.

“I am in awe of the dedication, perseverance, and professionalism of Air New Zealanders across the
business and never cease to be amazed at the resilience and strength of our people as we work our
way through this crisis.

“Whether it be volunteering to crew repatriation flights to unfamiliar ports, dealing with substantial
increases in volume at the call centre, or our cargo team’s efforts to keep New Zealand exporters

connected to global markets, the response of our people has been nothing short of remarkable” he
says.

“I also recognise this has been a particularly trying time for our customers with the mass cancellation
of flights and continuing uncertainty regarding international travel. I would like to apologise sincerely
for the fact that we didn’t live up to customers’ expectations in the way we handled the processing of
customer credits. I would also like to thank our customers for their ongoing support and patience”
says Mr Foran.

Last month, the airline was pleased to roll out the initial stages of a digital tool for customers to view
and redeem their credits online. To date, more than 70,000 customers have utilised the tool to redeem
existing credits into new bookings.

In June and July, the airline experienced heavy demand for domestic travel, particularly into leisure
destinations such as Queenstown and was operating around 70 percent of its pre-Covid Domestic
network.

Mr Foran says “It has been great to see our domestic business perform well ahead of our expectations
in June and July as the New Zealand public once again shows us that they have an innate love of
travel. We are also pleased to have ramped up our cargo offering in recent months, flying more than
50 flights per week under the International Airfreight agreement we signed with the Ministry of
Transport in late April. These cargo services ensure key goods such as medical supplies and food
continue to flow in and out of New Zealand. However, we have to bear in mind that with almost 70
percent of our revenue derived from international flying, while border restrictions remain in place our
business will continue to be significantly impacted. The recent resurgence of community transmission
in New Zealand in August, has also reminded us that we cannot afford to be complacent.”

“In the airline’s 80-year history we have faced many challenges and emerged from each one stronger
than before. We entered this crisis in an enviable position, and with our core Domestic network, I
believe we are better positioned for recovery than many of our airline peers.

“But given the restructuring and consolidation we had started to see within the global aviation
industry, we need to be hyper vigilant and protect our core competitive advantages. It is clear that
Covid-19 is unlike any other crisis the aviation industry has experienced and we will need to be more
nimble than ever as borders reopen” Mr Foran says.


Outlook for 2021

Given the uncertainty surrounding travel restrictions and the level of demand as these restrictions lift,
Air New Zealand is currently not able to provide specific 2021 earnings guidance. However, each of
the scenarios we are currently modelling suggest we will make a loss in 2021.

Financial Summary

• Operating revenue of $4.8 billion, down 16 percent on the prior year as a result of travel
restrictions due to Covid-19
• Total network capacity decline of 21 percent compared to the prior year
• Cargo revenue of $449 million, up 15 percent on the prior year
• Loss before other significant items and taxation of ($87) million
• Loss before taxation of ($628) million
• Board has determined not to declare a final dividend for the 2020 financial year, given current
financial pressures
• Short-term liquidity of $1.1 billion at close of business 25 August 2020, (including funds
available under the Government standby loan facility which has not yet been utilised)

Other Significant Items


2020 full year impact
De-designation of hedges
($105 million)
Partial non-cash charge
Aircraft impairment charge
($338 million)
non-cash charge
Reorganisation costs
($140 million)
Partial non-cash charge
Gain on sale from landing slots
$21 million
cash
Disestablishment of fair value hedges
($46 million)
non-cash charge
FX gains on uncovered foreign
currency debt
$67 million
non-cash charge
Total
($541 million)
of which ($453 million) non-cash items
and ($88 million) cash items




Ends
Issued by Air New Zealand Public Affairs ph +64 21 747 320

---

AIR NEW ZEALAND 2020ANNUAL RESULT
1

AIR NEW ZEALAND 2020ANNUAL RESULT
2
This presentation contains forward-looking statements. Forward-looking statements often include words
such as “anticipate”, “expect”, “intend”, “plan”, “believe”, “continue” or similar words in connection with
discussions of future operating or financial performance.
The forward-looking statements are based on management's and directors’ current expectations and
assumptions regarding Air New Zealand’s businesses and performance, the economy and other future
conditions, circumstances and results. As with any projection or forecast, forward-looking statements are
inherently susceptible to uncertainty and changes in circumstances. Air New Zealand’s actual results
may vary materially from those expressed or implied in its forward-looking statements.
The Company, its directors, employees and/or shareholders shall have no liability whatsoever to any
person for any loss arising from this presentation or any information supplied in connection with it. The
Company is under no obligation to update this presentation or the information contained in it after it has
been released.
Nothing in this presentation constitutes financial, legal, tax or other advice.
Forward-looking statements

AIR NEW ZEALAND 2020ANNUAL RESULT
Throughout this presentation and all related commentary, prior period comparative figures have been
restated, where applicable, to reflect the retrospective disestablishment of fair value aircraft hedges
following clarifications on the treatment of these hedges by the International Financial Reporting
Interpretations Committee during the 2020 reporting period.
The Group’s adoption of the new leasing standard (NZ IFRS 16) effective 1 July 2019, has also
impacted the way in which the Group presents lease costs and other associated balances in the income
statement, balance sheet and statement of cash flows. Prior year comparatives have not been restated,
in accordance with the transition provisions of the new standard.
For further information, please refer to Note 27 of the Group’s 2020 Annual Financial Statements.
Changes in accounting treatment
3

AIR NEW ZEALAND 2020ANNUAL RESULT
4
Business update
Financial results
Outlook
Q&A
Agenda

AIR NEW ZEALAND 2020ANNUAL RESULT
5
BUSINESS
UPDATE
Greg Fora n
Chief Executive Officer

AIR NEW ZEALAND 2020ANNUAL RESULT
2020 Overview
• Reporting a loss before other significant
items and taxation of $87 million,
compared to a profit of $387 million last year
−Solid start to H2 2020
−Flights into Shanghai and Seoul suspended in
Feb 2020, NZ borders subsequently closed to all
foreign nationals in early Mar 2020
−On 23 Mar 2020, New Zealand moves into seven
week period of lockdown –all non-essential
travel strictly prohibited
−Air New Zealand capacity declines more than
95% in April
• Including the impact of other significant
items of $541 million, statutory losses
before taxation were $628 million
1
• Short-term liquidity of $1.1 billion as at 25 August
2020 – includes the $900 million standby loan facility
with the Government
2
• Timing of reopening of global borders is uncertain
−Strong levels of Domestic demand observed June through
August, operating ~70% of pre-Covid capacity
−Cargo flights continue to exceed expectations, on a
revenue basis now equates to ~30%of our previous long-
haul business
−Currently not anticipating a return of passenger demand to
2019 levels until 2023 or beyond
•The airline continues to assess its capital
structure and the longer term options available
1
Aircraft impairments account for $338 million of the other significant items charge. For further detail, please refer to slide 18.
2
The $900 million facility has not yet been drawn upon as at 27 August 2020.
6

AIR NEW ZEALAND 2020ANNUAL RESULT
Covid-
19
SARS: Feb 2003
GFC: Sept 2008
H1N1 Infl: Jan 2009
9/11: Sept 2001
Сovid-19: Feb 2020
SARS
9/11
H1N1
GFC
Cargo tonne kilometres flown
(CTKs)
Passenger
kilometres flown
(RPKs)
Global ASK (YoY monthly change rate, %)Passenger kilometres and Cargo tonne kilometres flown
Sources: Financial crisis: IATA, IMF, TradingEconomics.com, Statista.com; DIIO,
2001-2020 data
Source: IATA/Tourism Economics, Air Passenger Forecasts, April 2020.
Global demand for air travel has suffered an unparalleled decline
following the outbreak of Covid-19
7

AIR NEW ZEALAND 2020ANNUAL RESULT
Air New Zealand
capacity drops
more than 95%
in April
24 March
- New Zealand moves
to Alert Level 4 and
begins nationwide
lockdown
- No non-essential
travel
18 March
New Zealand
shuts borders to
all foreign
nationals
11 March
WHO declares
global
pandemic
Group passenger bookings per day
New Zealand’s elimination strategy led to a precipitous reduction
in demand for air travel
8

AIR NEW ZEALAND 2020ANNUAL RESULT
• Air New Zealand entered 2H20 in a strong position, with a resilient balance sheet, cash of ~$1 billion
and nearing the end of its fleet replacement programme
•Quick and decisive action was taken to adjust the business in response to the steep decline in
demand that followed the widespread outbreak of Covid-19 in Q3 2020
−Swiftly negotiated a $900 million, standby loan facility with the New Zealand Government
−Made significant reductions to the cost base, including:
1.Reducing employee numbers by ~4,000 to reflect lower levels of anticipated demand to 2023
2.Deferral or cancellation of ~$700 million in expected capital expenditure
1
3.Cancellation of non-essential spend, reduction in lease costs, modification of supplier terms
• We have a clear strategy, setting us up strongly for the future
• These actions have structurally reduced the cost base, ensuring Air New Zealand is competitively
positioned to succeed and take a pivotal role in New Zealand’s economic recovery
Air New Zealand adjusted its business quickly and is positioned
to emerge strongly from this crisis...
1
These deferrals/savings are through to December 2022.
9

AIR NEW ZEALAND 2020ANNUAL RESULT
...and saw higher than expected levels of Domestic demand following
New Zealand’s move to Alert Level 1 in June
Domestic passenger bookings per day
10
27 April
New Zealand
moves down to
Alert Level 3
13 May
NZ moves down to
Alert Level 2, meaning:
(a) Able to travel if safe to do so
(b) Social distancing required on
flights
(c) Air New Zealand
increases capacity
to 20%
8 June
NZ moves down to Alert
Level 1. Covid-19 considered
‘eliminated’ meaning:
(a) No community transmission,
public events allowed
(b) No social distancing
(c) No masks
11 August
Auckland moves up to
Alert Level 3, the rest of
NZ moves up to Alert
Level 2

AIR NEW ZEALAND 2020ANNUAL RESULT
New Zealand
~70%
Australia
~10%
China
~95%
USA
~55%
% represents July
2020 domestic
capacity as a % of
pre-Covid levels
Air New Zealand's domestic recovery is happening more quickly
than other jurisdiction's around the world
France
~55%
UK
~20%
Germany
~25%
11

AIR NEW ZEALAND 2020ANNUAL RESULT
Cargo has also contributed strongly in 2H20, driven by heavy charter
volumes and flights under the International Airfreight Capacity scheme
12
• Overall cargo increased 13%* in 2020, excluding FX,
due to:
–More than 250 charters, to support the
movement of pandemic response equipment
and personal protective equipment
–Cargo flights supported by the Government’s
International Airfreight Capacity scheme:
oMore than 50 flights operated per week
largely to Asia, Australia and North America
oVital service to keep NZ export community
connected to the global market
oScheme recently extended to November
2020
–Delivering a positive cash contribution
* Reported Cargo revenue increased 15%, inclusive of foreign exchange impact.

AIR NEW ZEALAND 2020ANNUAL RESULT
13
• In a typical year, international travel represents two-thirds of Air New Zealand’s revenue
–Under Alert Level 1, observed strong domestic leisure rebound, suggesting Kiwis are substituting international holiday
destinations for domestic locations
–However in the long-term, our business is structured to be a Pacific Rim carrier, offering services to key international
destinations
• Uncertainty surrounding the timing of international borders reopening
−Timing is reliant on decisions by various individual governments and authorities – all borders will not open simultaneously
However the most important determinant of long-term recovery is the
reopening of global borders

AIR NEW ZEALAND 2020ANNUAL RESULT
14
•Maintain operational integrity and wellbeing
of staff
•Maintain strong connection with customers
•Overhaul cost base, reduce pace of cash burn
•Encourage Kiwis to explore NZ, rebuild the
Domestic engine
•Support recovery of the economy via cargo
Short-termMedium-termLong-term
•Build back a network of profitable flying
•Preserve and protect competitive advantages
•Leverage strong domestic brand presence and
customer loyalty to stimulate travel on Tasman
and Pacific Islandsroutes
•Return sustainable level of earnings through
the cycle
•Smaller more efficient airline, focussed on
optimal network
•Right sized cost base
•Expand and leverage loyalty programme
•Ancillary revenue opportunities
Therefore our priorities are very clear across the short, medium and
long-term

AIR NEW ZEALAND 2020ANNUAL RESULT
FINANCIAL
RESULTS
Jeff McDowa ll
Chief Financial Officer
15

AIR NEW ZEALAND 2020ANNUAL RESULT
2020 financial summary
•Operating revenue $4.8 billion, down 16%
•Loss before other significant items and
taxation
1
($87) million
•Loss before taxation ($628) million
•Net loss after taxation ($454) million
•Short-term cash of $438 million
2
1
Refer to slide 18 for further details on Other Significant Items of $541 million.
2
As at 30 June 2020, not including funds from the $900 million Government standby loan facility. Please refer to slide 19 for details on liquidity as at 25 August 2020.
16
Earnings performance pre-Covid was
tracking in line with the earnings guidance
provided at the Interim 2020 results. The
substantial adverse impact began in March
2020
1H20 vs 2H20 ($ millions)
819
533
549
387
(87)
20162017201820192020
Earnings before other significant items and taxation
($ millions)

AIR NEW ZEALAND 2020ANNUAL RESULT
Profitability waterfall
Additional commentary
•Labour cost decrease of 11.4%,
driven by reduced network
activity, headcount reduction due
to Covid-19 and the removal of
incentive payments. Payments
received under the Government
wage subsidy also reduced
labour costs
•Maintenance, aircraft operations
and passenger services costs
decreases reflect Covid-19
capacity reductions, and the
resulting decline in variable
operating costs, partially offset
by increased maintenance
activity for third parties and end
of lease activity
•Ownership costs increased due
to new aircraft deliveries, engine
overhauls and digital investment,
as well as lower interest income.
17
1
For further details on fuel cost movement, refer to slide 33.

AIR NEW ZEALAND 2020ANNUAL RESULT
18
Other significant items of $541 million were recognised in 2020
1
Other Significant Items impact for the 2020 Financial Year
De-designation of hedges($105 million)Partial non-cash
Aircraft impairment charge($338 million)Non-cash
Reorganisation costs($140 million)Partial non-cash
Gain on sale from landing slots$21 millionCash
Disestablishment of fair value hedges($46 million)Non-cash
FX gains on uncovered foreign
currency debt
$67 millionNon-cash
Total Other Significant Items($541 million)
Non-cash
$453 million
Cash
$88 million
2
1
Please refer to slide 37 for more information.
2
Refers to cash paid in the 2020 financial year.

AIR NEW ZEALAND 2020ANNUAL RESULT
19
Air New Zealand has structurally reset the cost base, reducing cash
burn and protecting liquidity
•Permanent reduction in staffing of ~
30%, more than 4,000 employees
•Cancellation of 2020 interim dividend
•Reduction in CEO, Executive and
Board remuneration
Cash flow
management
Capital
management
Other
initiatives
•Suspension of all short-term incentives
•~50% reduction in operating costs
1
•Lease reductions across fleet, property
and other areas for 2021 financial year
•Extension of terms with major suppliers
•Deferral/cancellation of ~$700 million in
capex
2
, including reduced hangar,
digital and infrastructure spend
•Suspension of dividends
•Grounding of the 777 widebody fleet until
at least the end of 2020, saving significant
maintenance and operational costs
•Deferral of delivery of 5 A321 NEOs into
2022 and 2023 financial period, and 1
ATR72-600 into 2021
•Negotiated $900 million standby
loan facility with the NZ Government
•Increased cargo flying, won
competitive tender to restart the NZ
export market
•Government wage subsidy of ~$115
million
3
•Made use of tax relief and other
legislative changes to increase short-
term liquidity by $80 million
1
This excludes redundancy costs.
2
These deferrals/savings are through to Dec 2022.
~245
900
~$1.1 billion in short-
term liquidity
(as at 25 Aug 2020)
Government standby loan facility
Cash on hand
3
Approximately $75 million relates to the period ended 30 June 2020. A further ~$40 million was received
under Tranche 2 of the subsidy scheme in July 2020.

AIR NEW ZEALAND 2020ANNUAL RESULT
20
Reduction in operating costs reflect substantial capacity declines
and benefit of early management actions
60
30
Q4 2019Q4 2020
(~50%)
Q4 average weekly operating costs (ex fuel)
($ millions)
65
30
July weekly operating costs (ex fuel)
($ millions)
July 2019July 2020
(~60%)
vs.
capacity
decline of
~75%
vs.
capacity
decline of
~65%

AIR NEW ZEALAND 2020ANNUAL RESULT
21
Significant reduction in cash burn
1
175
65-85
Q4 2020 monthly
cash burn
Go forward average
monthly cash burn
~50% to ~60%
reduction
Cash burn
($ millions)
Estimated cash burn assumes:
•Revenue benefit from operating Domestic network at ~70%
pre-Covid levels with no social distancing, as well as
additional cargo flying
•International travel restrictions remain in place
•Cost reduction actions already taken by Management
•Reduced level of refunds, redundancy payments and hedge
losses
•Continued focus on working capital
Risks to cash burn estimates include:
•Prolonged flying restrictions orsocial distancing requirements
on Domestic flights
•Discontinuation of government support for international cargo
1
Cash burn is inclusive of estimated redundancy and refund payments, interest on the Government standby loan facility and principal amortisation of loan. It also includes hedge gains/losses.

AIR NEW ZEALAND 2020ANNUAL RESULT
Pre-Covid20202021E
22
Labour costs
•Phase 1commenced in April 2020 - focus on driving
structural labour savings given current views on
profile of demand recovery
–Largely complete, more than ~4,000 staff exiting
either through redundancy, voluntary exit or
furlough mechanisms
•Phase 2commenced in June 2020 -targeted labour
cost reduction of ~$150 million, recognising that in the
near-term, the airline will be substantially smaller as
borders remain closed;
–Incremental and temporary labour savings required
–Redundancy is viewed as the last option, after
exhausting additional solutions such as reduced
hours, furloughs for example
~40% lower
~35% lower
Labour costs
($ millions)

AIR NEW ZEALAND 2020ANNUAL RESULT
23
Liquidity and gearing position
$ millions30 Jun 202031 Dec 2019
Gross debt(3,701)(3,660)
Cash, restricted deposits and net open
derivatives
7351,271
Net debt(2,966)(2,389)
Gross debt/EBITDA4.43.0
Net debt/EBITDA3.62.0
Gearing69.2%54.3%
Total liquidity1,3381,003
Liquidity (% of 2019 revenue)23.1%17.3%
Moody's ratingBaa2 (investment grade)Baa2 (investment grade)

AIR NEW ZEALAND 2020ANNUAL RESULT
24
Capital structure and dividend
Capital structure
•The Board continues to assess the airline’s capital
structure and funding needs with the goal of ensuring
long-term financial resilience
•The New Zealand Government has recently reaffirmed
its commitment to maintaining its majority shareholding
in Air New Zealand, and the Board is engaging
constructively with the Crown in its capital structure and
funding discussions
Dividend
•Due to financial pressures as the airline manages the
impact of Covid-19, the Board has determined that it will
not declare a final dividend for the 2020 financial year
•First time since 2005 that the airline has not paid a
dividend, reflecting the significant impact that Covid-19
has had on the airline’s operations and balance sheet

AIR NEW ZEALAND 2020ANNUAL RESULT
25
Hedging update
• The significant reduction in network capacity from March 2020
onwardsled to a decline in fuel consumption and foreign
currency revenues, driving an over-hedged position
• The airline managed this by closing out certain hedges that
covered Q4 2020 and the first nine months of the 2021
financial year
– Cash costs to close were ~$65 million
• In addition, the de-designation of hedges resulted in a $105
million chargereflected within other significant items
• The Board has granted temporary exemption to certain
aspects of the airline’s treasury policy with regard to required
hedging levels whilst Covid-19 drives uncertainty of future
capacity
Fuel hedge position
(as at 19 August 2020)
Period
Hedged
volume
(in barrels)
Net
compensation
from hedging
1
1H 20211,725,000(~$35 million)
2H 2021870,000(~$1 million)
1
Net compensation from fuel hedges represents the unrealised gains
and losses on fuel hedges.

AIR NEW ZEALAND 2020ANNUAL RESULT
26
• Forecasted investment of $2.0 billion in aircraft
and associated assets through to 2024
–Forecast capex spend reduced by $200m for
2020 – 2022 period, reflecting management
actions
• Timing of forecast expenditure has shifted with
the delay in the arrival of 5 domestic NEOs and 1
ATR**
* Includes progress payments on aircraft.
**Includes deferral of five A321 NEO aircraft. Onefrom 2021 to 2022, two from2022to 2023,one delayed within 2023and one from 2023 to 2024. The ATR is deferred from 2020 to 2021
*** Does not reflect five Boeing 787 on order for expected delivery from 2025.
Fleet investment update
Aircraftdelivery schedule (as at 30 June 2020)
Number in
existing fleet
Number
on
order
DeliveryDates (financial year)
2021202220232024
Owned fleet on order
Boeing 787
-3***--12
Airbus A320/A321 NEOs
119-333
ATR72-600
27
2 2---
Actual and forecast aircraft capital expenditure*

AIR NEW ZEALAND 2020ANNUAL RESULT
Greg Fora n
Chief Executive Officer
OUTLOOK
27

AIR NEW ZEALAND 2020ANNUAL RESULT
28
Our priorities for 2021
• The aviation sector has been deeply impacted by global travel restrictions imposed to combat Covid-19
• Although significant uncertainty remains, we are currently expecting in the short-term to be a largely
Domestic airline with cargo and some flying to the Tasman and Pacific Islands
• Have flexibility to scale operations up should conditions recover more quickly
−Continue to chase opportunities in the cargo space to keep New Zealand connected to the world
• The performance of our domestic business in June and July was highly encouraging, and we remain
focused on driving domestic tourism, and rebuilding the domestic corporate business
• Pre-Covid, our international long-haul business represented ~40% of total revenue.
−We expect there to be some substitution effect, however unlikely to match the volume of revenue lost
from reduced international passenger revenue
• We will continue to refine our refreshed strategy, exploring some exciting prospects within loyalty, digital
and sustainability

AIR NEW ZEALAND 2020ANNUAL RESULT
29
2021 Outlook
Given the uncertainty surrounding travel restrictions and the level of
demand as these restrictions lift, Air New Zealand is currently not able to
provide specific 2021 earnings guidance. However, each of the scenarios
we are currently modelling suggest we will make a loss in 2021.

AIR NEW ZEALAND 2020ANNUAL RESULT
30
THANK YOU

AIR NEW ZEALAND 2020ANNUAL RESULT
SUPPLEMENTARY
INFORMATION
31

AIR NEW ZEALAND 2020ANNUAL RESULT
11.15
10.00
0.85
0.17
0.07
(0.19)
0.25
8
9
10
11
12
2019 CASKDISECONOMIES OF
SCALE AND
INEFFICIENCIES
PRICETHIRD PARTY
MAINTENANCE
FUEL PRICEFOREIGN EXCHANGE2020 CASK
CASK (cents)
* Excluding fuel price movement, foreign exchange and third party maintenance.
CASK movement
• CASK*increased 10.2%
–Reported CASK increased 11.5%, mainly driven by diseconomies of scale and inefficiencies associated with
Covid-19 schedule changes
32
CASK
increased
10.2%

AIR NEW ZEALAND 2020ANNUAL RESULT
1,271
(217)
(151)
62
57
1,022
0
200
400
600
800
1,000
1,200
1,400
2019
FUEL COST
VOLUMEUNDERLYING
PRICE
NET HEDGING
IMPACT
FX
MOVEMENTS
2020
FUEL COST
$ millions
Decrease in
jet fuel
price
US$82 to
US$70
per barrel
June 2020
hedge loss
of $67m
vs
June 2019
hedge loss
of $5m
$89 million effective
decrease in fuel
price
(7%)
Fuel cost movement
33

AIR NEW ZEALAND 2020ANNUAL RESULT
34
Projected aircraft in service and fleet age
* Excludes short-term leases which provide cover for the global Rolls-Royce engine issues.
1
Excludes the Boeing 777-200 fleet, which has been grounded for an indefinite period.
7.4
7.0
7.5
7.1
7.1
6.7
7.1
7.6
8.0
201620172018201920202021202220232024
Aircraft fleet age in years
(seat weighted)
1
HistoricalForecast
20202021202220232024
Boeing 777-300ER77777
Boeing 777-200ER8----
Boeing 787-9/787-101414141517
Airbus A3202220171513
Airbus A320/A321 NEO1111141720
ATR72-6002729292929
Bombardier Q3002323232323
Total Fleet112104104106109
*
*

AIR NEW ZEALAND 2020ANNUAL RESULT
Impact of new lease accounting standard (NZ IFRS 16)
Income statement impact
Jun 2019
$M
Jun 2020
$M
Notes
Rental and lease
expense245Depreciation expense227Net movement of $19 million comprised of:
Interest expense29NZ IFRS 16 methodology changes10
Other expenses8Underlying changes to lease portfolio9
Total income statement245Total income statement26419
Note: For details on the transitional impact of NZ IFRS 16 on the balance sheet, refer to Note 27 of the Group’s Annual Financial Statements.
Jun 2019
$M
Jun 2020
$M
Notes
Cash flows from
operating activities
244Cash flows from
operating activities
29Principal repayments have also been reclassified
from operating to financing activities
Cash flows from
financing activities
203
Statement of cash flows impact
35

AIR NEW ZEALAND 2020ANNUAL RESULT
36
* Includes capitalised off-balance sheet aircraft lease commitments at 30 June 2019.
1
Refer to Note 27 in the Group’s 2020 Annual Financial Statements for details of the fair value hedge adjustment and impact ofNZ IFRS 16.
Reconciliation of gearing movements
Reported
30 Jun 2019
Fair value
hedge
adjustment
Adjusted
30 Jun 2019
Impact of
NZ IFRS 16
Restated
1 Jul 2019
Reported
30 Jun 2020
Net Debt ($M)
2,517*-2,517*(384)2,1332,966
Equity
($M)
2,089(97)1,992-1,9921,318
Gearing (%)
54.6*55.8*51.769.2
Aircraft lease commitments for
the next twelve months
multiplied by a factor of seven
$(1,246m)
Operating lease liabilities
$862m
Impact of bringing operating leases
on balance sheet:

AIR NEW ZEALAND 2020ANNUAL RESULT
37
Earnings before other significant items and taxation
1
Jun 2020
$M
June 2019
$M
(Losses)/Earnings before taxation (per NZ IFRS)
(628)382
Add back other significant items:
De-designation of hedges
105-
Aircraft impairment charge
338-
Reorganisation costs
140-
Gain on sale of airport slots
(21)-
Disestablishment of fair value aircraft hedges
465
FX gains on uncovered foreign currency debt
(67)-
(Losses)/Earnings before other significant items and
taxation
(87)387
1
Earnings before other significant items and taxation represent Earnings stated in compliance with NZ IFRS (Statutory Earnings) after excluding items which due to their size
or nature warrant separate disclosure to assist with understanding the underlying financial performance of the Group. Earnings before other significant items and taxation is
reported within the Group’s audited annual financial statements. Further details are contained within Note 3 of the Group’s annual financial statements

AIR NEW ZEALAND 2020ANNUAL RESULT
* Comparative information is at 1 July 2019, the Group’s transition date for NZ IFRS 16.
** Dividends are fully imputed.
Jun 2020
$M
Jun 2019
$M
Movement
$M
Movement
%
Operating revenue
4,8365,785(949)(16.4%)
Earnings before other significant items and taxation
(87)387(474)(122.5%)
Earnings before taxation
(628)382(1,010)(264.4%)
Net (loss)/profit after taxation
(454)276(730)(264.5%)
Operating cash flow
230986(756)(76.7%)
Cash position
4381,055(617)(58.5%)
Gearing*
69.2%51.7%
-(17.5pts)
Ordinary dividends declared**-22.0 cps(22.0 cps)(100%)
Financial overview
38

AIR NEW ZEALAND 2020ANNUAL RESULT
Jun 2020Jun 2019Movement*
Passengers carried (‘000s)
13,52517,738(23.8%)
Available seat kilometres (ASKs, millions)
36,33546,029(21.1%)
Revenue passenger kilometres (RPKs, millions)
29,56838,573(23.3%)
Load factor
81.4%83.8%(2.4pts)
Passengerrevenue per ASKs as reported
(RASK, cents)
10.810.80.7%
Passengerrevenue per ASKs, excluding FX
(RASK, cents)
10.810.80.0%
Group performance metrics
39
* Calculation based on numbers before rounding.

AIR NEW ZEALAND 2020ANNUAL RESULT
Domestic
Jun 2020Jun 2019Movement*
Passengers carried (‘000s)
8,82111,513(23.4%)
Available seat kilometres (ASKs, millions)
5,6197,104(20.9%)
Revenue passenger kilometres (RPKs, millions)
4,5525,957(23.6%)
Load factor
81.0%83.9%(2.9pts)
Passengerrevenue per ASKs as reported
(RASK, cents)
23.622.55.1%
Passengerrevenue per ASKs, excluding FX
(RASK, cents)
23.522.54.8%
* Calculation based on numbers before rounding.
40

AIR NEW ZEALAND 2020ANNUAL RESULT
41
1
Pacific Islands including Bali and Hawaii.
* Calculation based on numbers before rounding.
Tasman & Pacific Islands
1
Jun 2020Jun 2019Movement*
Passengers carried (‘000s)
3,0024,044(25.8%)
Available seat kilometres (ASKs, millions)
10,36713,640(24.0%)
Revenue passenger kilometres (RPKs, millions)
8,26511,195(26.2%)
Load factor
79.7%82.1%(2.4pts)
Passengerrevenue per ASKs as reported
(RASK, cents)
9.49.6(2.2%)
Passengerrevenue per ASKs, excluding FX
(RASK, cents)
9.59.6(1.9%)

AIR NEW ZEALAND 2020ANNUAL RESULT
42
International
Jun 2020Jun 2019Movement*
Passengers carried (‘000s)
1,702
2,181
(22.0%)
Available seat kilometres (ASKs, millions)
20,349
25,285
(19.5%)
Revenue passenger kilometres (RPKs, millions)
16,751
21,421
(21.8%)
Load factor
82.3%
84.7%
(2.4pts)
Passengerrevenue per ASKs as reported
(RASK, cents)
8.1
8.1
(0.7%)
Passengerrevenue per ASKs, excluding FX
(RASK, cents)
7.9
8.1
(2.2%)
* Calculation based on numbers before rounding.

AIR NEW ZEALAND 2020ANNUAL RESULT
Available Seat Kilometres (ASKs)Number of seats operated multiplied by the distance flown (capacity)
Cost/ASK (CASK)Operatingexpenses divided by the total ASK for the period
GearingNet Debt / (NetDebt + Equity); Net Debt includes capitalised aircraft operating lease commitments at 30 June 2019
Earnings before interest, tax,
depreciation and amortisation
(EBITDA)
Operating earnings (before depreciation and amortisation, rental and lease expenses, net finance costs, associate earnings,
other significant items and taxation) plus finance income and cash dividends received from associates less foreign exchange
gains
Gross DebtInterest-bearing liabilities and lease liabilities
Net Debt
Interest-bearing liabilities, lease liabilities less bank and short-term deposits, net open derivatives held in relation to interest-
bearing liabilities and lease liabilities, and interest-bearing assets, plus, for the prior period, net aircraft operating lease
commitments for the next twelve months multiplied by a factor of seven (excluding short-term leases, which provide cover for
Boeing 787-9 engine issues)
Cash, restricted deposits and net
open derivatives
Bank and short-term deposits, interest-bearing assets and net open derivatives held in relation to interest-bearing liabilities and
lease liabilities
Passenger Load FactorRPKs as a percentage of ASKs
PassengerRevenue/ASK (RASK)Passenger revenuefor the period divided by the total ASK for the period
Revenue Passenger Kilometres
(RPKs)
Number of revenue passengers carried multiplied by the distance flown (demand)
The following non-GAAP measures are not audited: CASK,Gearing, Net Debt, Gross Debt, EBITDA and RASK.Amounts used within the calculations are derived
from the audited Group financial statements and FiveYear Statistical Review contained in the 2020 Annual Financial Results. The non-GAAP measures are used by
management and the Board of Directors to assess the underlying financial performance of the Group in order to make decisions around the allocation of resources.
Glossary of key terms
43

AIR NEW ZEALAND 2020ANNUAL RESULT
Resources
Contact information
Email: investor@airnz.co.nz
Share registrar: enquiries@linkmarketservices.com
Investor website:www.airnewzealand.co.nz/investor-centre
Monthly traffic updates: www.airnewzealand.co.nz/monthly-operating-data
Corporate governance: www.airnewzealand.co.nz/corporate-governance
Sustainability: https://www.airnewzealand.co.nz/sustainability
Find more information about Air New Zealand
44

AIR NEW ZEALAND 2020ANNUAL RESULT
45

---

2020
ANNUAL
SHAREHOLDER
REVIEW
Then, Now,
Always.

2
AIR NEW ZEALAND ANNUAL SHAREHOLDER REVIEW 2020
Letter from the Chairman
Kia ora koutou katoa
My first year in the role of Chairman of Air New
Zealand has certainly been an eventful and
challenging one. The Covid-19 pandemic has had
a rapid and devastating impact across all areas of
society, and in particular has dealt a huge blow to
the aviation and tourism sectors both here in New
Zealand and around the world. The unprecedented
level of disruption on our business has required
quick and decisive action by management and
the Board, as well as strong governance and
leadership to ensure we are positioned to succeed
in what will no doubt be a tough economic
environment for the next few years.
Air New Zealand had a solid start to the 2020
financial year, with a strong focus on profitable
growth into new markets and stimulating
domestic leisure demand. We were also
preparing to launch the first ever non-stop link
between New Zealand and New York. Now, a
little over six months later and following the
declaration of a global pandemic, the $87 million
1

loss we are reporting today, our first loss in
18 years, reflects the severe impact that Covid-19
has had on our business. While we moved swiftly,
the impact on the airline was so significant that
we were unable to prevent a material impact to
our 2020 financial result.
The past few months, and in particular the
last three weeks, have again highlighted to
me how important it is, not only to have a solid
foundation of core competitive advantages, but
to be flexible, nimble and prepared to adjust the
business at pace. After successfully eliminating
Covid-19 for 102 days, New Zealand’s recent
move back into lockdown in early August
reminds us all how quickly these situations
can evolve. I truly believe our response to
both lockdown periods, and the dedication
and full commitment of Air New Zealanders to
do whatever it takes, proves Air New Zealand
has the ability to adapt to any challenge that
presents itself. This will be the key to our long-
term resilience and ongoing success.
The Board and I are fully supportive of the new
strategy that Greg and his Executive team have
been working on in parallel to dealing with this
crisis. While I think it is very easy at this time to get
caught up in the now, it is equally important that we
focus on where our business is headed. We have a
plan in place, and I know all Air New Zealanders will
be ready for the next phase when it comes.
Overview of Covid-19 and our response
When we reported our 2020 interim results
earlier in February this year, we had only recently
announced the suspension of our services into
Shanghai and Seoul, although we were monitoring
the situation very closely and made early
adjustments to capacity across our network.
What has since transpired has been vastly
different to our initial expectations. In March
2020, following widespread transmission of
the disease and declaration of Covid-19 as a
global pandemic, the New Zealand Government
announced that all foreign nationals would
need to undertake a 14-day mandatory isolation
period upon entry to New Zealand. Unlike some
of our peers, we came into this crisis in a really
strong position with a resilient balance sheet, an
investment grade credit rating and cash of more
than $1 billion. We were also nearing the end of
our fleet replacement programme, meaning that
future capital expenditure requirements in the
medium-term had reduced significantly. However,
the decision to restrict inbound visitors clearly
had huge implications for our business and for our
liquidity. As such, in late March we acted swiftly
and approached the New Zealand Government to
Dame Therese Walsh — Chairman
1
Refers to Earnings before other significant items and taxation. Refer to
the financial commentary section on page 17.

AIR NEW ZEALAND GROUP
negotiate a $900 million standby loan facility
to bolster liquidity and provide us with flexibility
to deal with the potential for prolonged travel
restrictions and closure of our borders.
A few days after the announcement of the facility
agreement, the New Zealand Government
closed our borders completely to foreign
nationals and announced a four-tier alert
system that ultimately resulted in New Zealand
moving into a seven-week period of nationwide
lockdown
2
. During this lockdown, all non-
essential businesses were closed or operated
under severe restrictions, people were required
to stay at home and avoid contact with anyone
outside their residence and strict limitations
were placed on all methods of travel.
While the lockdown was very effective at slowing
the spread of Covid-19, it also had a profound
impact on demand for air travel. In March and
April, demand reduced to almost zero, which
resulted in Air New Zealand operating less than
5 percent of our total network capacity. Never in
the 80-year history of our airline have we had to
reduce network capacity to this extent.
Faced with this drastic decline in demand, we took
unfortunate but necessary steps to cancel the
2020 interim dividend and initiate a deep review of
our entire cost base, in the knowledge that at least
for a time, we would be a much smaller business
than we had been pre-Covid. We knew that we
would need to make some difficult decisions
and make them quickly if we wanted to emerge
strongly and competitively from this crisis.
Sadly, without the ability to mandatorily furlough
staff like our airline peers in other jurisdictions
around the world, we knew there were some
particularly hard decisions that needed to be
made with respect to our people.
People
All Air New Zealanders have been impacted by
this crisis in some way, shape or form. Over 4,000
people have lost their roles, while others are
working reduced hours, taking leave without pay,
or have been temporarily redeployed. Others may
face significant changes to their personal situations
at home, and those who remain are adjusting to a
different cadence as we slowly rebuild our business.
The widespread restructure of our airline has been
a heart-breaking experience for everyone involved –
both management and the Board are acutely aware
that what has always made Air New Zealand such a
special company and has driven our record levels
of customer satisfaction and engagement, is our
people. He aha te mea nui o te ao, he tāngata he
tāngata he tāngata. In making these decisions we
have planned carefully to ensure we strike the right
balance between adjusting our cost base for what
could be a substantively lower demand environment
for some time, and making sure that when borders
reopen, we can act at pace to add capacity back on
to the network.
To say that I am proud of the way in which Air New
Zealanders have acted with dedication, dignity, and
complete professionalism over this challenging
time would be an understatement. In fact, it is the
sentiment of many departing Air New Zealanders
that has made me even more determined for Air New
Zealand to come out of this crisis stronger than ever.
Dividend
The Board is focused on preserving Air New
Zealand’s liquidity across a range of potential
demand recovery scenarios. Given current financial
pressures as the airline manages the impact of
Covid-19, the Board has determined that it will not
declare a final dividend for the 2020 financial year.
On behalf of the Board I would like to thank our
shareholders for their continued support as we work
through these unprecedented times. Please be
assured that we are working tirelessly to manage the
airline through this crisis and get the best possible
outcome for all of our stakeholders.
Letter from the Chairman (continued)
PIC
3LETTER FROM THE CHAIRMAN
Contents
Letter from the Chairman 2
Letter from the Chief Executive Officer 5
Our Story 8
Health & Safety 10
Financial Commentary 13
Change in Profitability 16
Financial Summary 17
2
Refers to the time spent in Alert levels 4 and 3 between 24 March 2020
and 13 May 2020.

AIR NEW ZEALAND ANNUAL SHAREHOLDER REVIEW 2020
Capital structure
The Government has recently reaffirmed the
Crown’s long-standing commitment to maintaining
its majority shareholding in Air New Zealand,
having regard to the unique and critical role the
company has in New Zealand’s economy and
society. This is reflected in the Crown standby
facility that provides Air New Zealand with liquidity
support whilst the airline works through to a
permanent solution. Air New Zealand is engaging
constructively with the Crown as it continues to
assess its capital structure and funding needs.
Outlook
Given the uncertainty surrounding travel
restrictions and the level of demand as these
restrictions lift, Air New Zealand is currently not
able to provide specific 2021 earnings guidance.
However, each of the scenarios we are currently
modelling suggest we will make a loss in 2021.
In closing
Prior to going into the most recent lockdown in August,
we had been pleasantly surprised by how quickly
domestic demand for air travel had recovered, with a
strong domestic schedule gaining huge momentum
thanks to our loyal customers. We were also starting
to see the return of our corporate customers and there
was huge excitement from Kiwis about the prospect
of a travel bubble between New Zealand and the
Cook Islands. While the latest outbreak of Covid-19
in Auckland has been disappointing, these reactions
give me hope that while the road will be tough for
a while yet, there is still strong demand for air travel.
I want to take a moment to thank our shareholders,
customers and suppliers for their continued support
and engagement over this challenging time.
I would also like to pay tribute to my Board
colleagues, our Chief Executive Officer Greg Foran,
the Executive leadership team and the entire
Air New Zealand whānau for their enduring support
and dedication to our customers. Thank you.
E kore e whati te raupō i mangungu – the raupo
though bruised will not break apart.
Ngā mihi

Dame Therese Walsh
Chairman
27 August 2020
Letter from the Chairman (continued)
4
Following the retirement
of Chairman Tony Carter
and Director Sir John
Key we were thrilled to
welcome Laurissa Cooney,
Larry De Shon and Dean
Bracewell to our Board.
Laurissa has an incredibly strong understanding
of the regional tourism industry, as well as deep
connections to iwi and regional stakeholders
across New Zealand. She has excellent
commercial skills as well as a passion for
leadership, and we are very excited for the new
perspective she brings to the Board.
Larry brings with him a wealth of international
business, transport and aviation experience,
having previously had a distinguished 28-year
career with United Airlines. He also spent 13
years with Avis Budget Group, as the Global Chief
Executive further strengthening his ties to our
broader industry. His deep experience in growing
a global business in the wake of the GFC is also
timely given the phase Air New Zealand will go
through rebuilding post Covid-19.
Dean is one of New Zealand’s most highly
regarded business leaders and has an intimate
understanding of the transport and logistics
industries. He also understands what it takes for
a company to succeed both in New Zealand and in
a tough and competitive environment. As we seek
to rebuild Air New Zealand following Covid-19, he
brings commercial and leadership skills that will
further strengthen the Board’s existing skill set.
I would also like to thank our Deputy Chairman,
Jan Dawson. After 9 years of service to our
Board, Jan’s intention was to retire at our Annual
Shareholder Meeting in September this year.
Given the unprecedented situation the airline is in
as a result of Covid-19, Jan has agreed to continue
in her position in the short-term to provide
continuity as we work through the significant
impacts of
Covid-19. Once a date for Jan's
retirement has been
agreed, the Board will revert
back down to 7 directors.
Dean BracewellLaurissa CooneyLarry De Shon

LETTER FROM THE CHAIRMAN
|
LETTER FROM THE CHIEF EXECUTIVE OFFICER
AIR NEW ZEALAND GROUP
5
Letter from the Chief Executive Officer
Tēnā koutou e ōku
rangatira
I think it would be an understatement to say
that the first six months of my time at Air New
Zealand have been vastly different to what
I was expecting. What started off as the closure
of two routes into Asia in February, has fast
evolved into the most financially threatening
event that has ever faced the aviation and
tourism industries. From the onset of this crisis
we have been proactive and decisive, and I am
confident that we are taking the right steps to
get us through these challenging times and to
ensure our long-term success.
Our key priorities throughout this period have
been very clear. First and foremost, we have
been focused on protecting the health and the
safety of our people and our customers, not
only on-board our flights, but at the airport,
in operational areas and in our office spaces.
Chief Medical Officer Dr Ben Johnston has led
Air New Zealand’s health response through this
crisis with dedication and precision, working
closely with the Ministry of Health to ensure we
implement the most up to date practices and
precautions, so that our staff and our customers
stay safe across the entire travel journey.
Secondly, we made substantial changes to our
cost base and our planned capital spend to
preserve liquidity and right size our business for
how we think the demand profile may look in the
coming two to three years. I use the word “may”
because at this point, there is a lot of uncertainty
associated with any forward-looking view of
demand. Our recent move back into lockdown
here in New Zealand, after 102 days of living life
almost as normal shows that while we can make
an educated guess, we certainly cannot accurately
predict when travel restrictions will ease, driving
the return of customer demand.
While flexibility is essential in this environment,
like all of our airline peers we are planning on being
smaller, at least for a time. We moved faster than
most in the industry and took a hard look at our
cost base, restructuring our permanent labour
costs, as well as spend across aircraft, properties,
supply chain and marketing, just to name a few
areas. We knew that we needed to act quickly and
decisively to ensure our survival and to compete
strongly going forward.
As a result of the actions taken and lower
capacity, we have reduced operating costs
by 50 percent in the fourth quarter of 2020,
compared to the same period last year. We have
also managed to reduce our cash burn from
around $175 million per month over April to
June down to around $85 million in July.
Thirdly, we have worked hard to ensure that
every action and decision we have made will
set us up to emerge strongly and competitively
from this crisis. The unfortunate reality is that
some airlines will not survive this. The actions
we have taken to date, albeit painful, are with
a view to setting ourselves up for success in
whatever competitive and demand environment
emerges on the other side of this crisis. That is
also why the Executive and I have been working
to define Air New Zealand’s strategy and set
a course for our future, at the same time as
managing the widespread impacts of Covid-19.
Our project is called Kia Mau which in this
context means to get ready in te reo Māori.
As we expected, the results of this review
showed that we are fundamentally a very strong,
very efficient airline. We are not moving the
dial 180 degrees here – rather, we are making
refinements to our existing strategy, as well
as exploring some exciting prospects within
the loyalty, digital and sustainability spaces.
I am looking forward to sharing more details
on this at our Annual Shareholders Meeting in
September this year.
Greg Foran — Chief Executive Officer

6
AIR NEW ZEALAND ANNUAL SHAREHOLDER REVIEW 2020
A sincere thank you to
the Air New Zealand whānau
While the past six months have been incredibly
challenging, seeing Air New Zealanders pull
together through one of the most difficult periods
in our history has made me extremely proud.
As this year has proven, the airline industry will
continue to change at pace and there is always the
potential for a significant shock. Being agile and
resilient has long been a competitive advantage
of ours and one outstanding example of this has
been the way our cargo business has performed
over the past few months.
Within 48 hours of border restrictions being put
in place around the world, our cargo team had
remodelled our cargo operations, enabling the
airline to operate cargo-only charters. Because
of this we won a substantial portion of flights
under the Government’s International Airfreight
Capacity agreement (IAFC). We are proud to have
taken such a crucial role in keeping the wheels of
the New Zealand economy turning, helping Kiwi
exporters to get their products to the world, as
well as bring important cargo such as masks and
medical supplies into New Zealand.
I would like to take this opportunity to thank the
entire Air New Zealand whānau – those who are
still with us, and those who are not. Many have
made significant personal sacrifices, with more
than 3,500 people sadly losing their roles, over
600 staff taking voluntary exit, and almost 400
taking significant reductions to their work hours.
This is all to ensure that Air New Zealand emerges
strongly from this crisis. Scaling down our
operations, revising network schedules on a daily
basis and operating in an environment with new
government regulations and added complexity
is a tough ask at the best of times, let alone in
the midst of a global pandemic. Our people have
shown unwavering poise and dedication while
operating in this environment of constant flux and
challenge, and I am in awe of their resilience.
In this context, a special thank you must also be
said to Chief Marketing and Customer Officer Mike
Tod, Chief Strategy, Networks and Alliances Officer
Nick Judd, Chief Air Operations and People Safety
Officer John Whittaker, and former Chief People
Officer Jodie King for their significant contributions
to Air New Zealand. Between them they have given
more than 70 years of service and I am deeply
grateful for their contribution.
I would also like to give specific mention to
our international cabin crew and pilots, who in
recent months have been the focus of fears of
another spike of Covid-19 in New Zealand. We
have worked closely with the health authorities
and have various measures in place to keep our
customers, crew and the New Zealand public safe.
On top of everything else the team have dealt with
in the past few months, being subject to unjust
treatment by some members of the public has
been particularly upsetting, both for crew and their
families. The Board, Executive and I stand with
our crew and appreciate the part they are playing
to return people to their homes safely and get our
economy moving again.
An apology to our customers
I do want to take this opportunity to again
apologise sincerely to our customers for the way
in which our credits and refunds process was
initially handled. The scale of cancellations was
something we were not prepared for and our
response fell well below our expectations and
yours. Our customers and the trust they have in us
is pivotal to our ongoing success and I appreciate
the patience you have shown as our team worked
to build a long-term, bespoke digital solution from
scratch. We have also introduced extra flexibility
around the use of credits, including extending the
timeframe in which a new booking can be made,
and travel taken.
Letter from the Chief Executive Officer (continued)

LETTER FROM THE CHIEF EXECUTIVE OFFICER
AIR NEW ZEALAND GROUP
7
The way forward
It was hugely encouraging to see thousands
of Kiwis take to the skies across June and
July to explore the wonderful sights and
experiences our great country has to offer.
With no community transmission of Covid-19
for 102 days, and no social distancing in place,
we experienced better than expected domestic
travel demand. This was important, not only for
Air New Zealand but also for the local economies
of those centres and regions.
Although we had significantly more aircraft
in the air through June and July than we did
in April and May, revenue from our domestic
networks represents around a third of our
total revenue in a typical year. This means that
until global borders reopen, we will continue
to be significantly impacted by this crisis. The
unfortunate reality is that we don’t expect to see
a return to long-haul travel for some time and
until then we will be a keenly focused domestic
airline; hopefully with Tasman and Pacific
Islands services added before too long. While
the recent move back into lockdown in New
Zealand is disappointing, it was not unexpected
given what we have seen elsewhere in the world.
I do believe however that once the country
comes out of this lockdown, we will again see
Kiwis eager to travel domestically.
I want to be up-front about the fact that Air New
Zealand has a difficult road ahead, but I am
determined that we will continue to make Kiwis
proud. For today, we are focused on structuring
our organisation for the current reality that
faces us and building a solid foundation for the
future. The strategy we have been working on for
the past few months, is based on our purpose,
which is fundamentally unchanged. We want to
continue to enrich our country by connecting New
Zealanders to each other and to the world. Given
time, I know we will once again achieve great
things for our airline and our nation.
Greg Foran
Chief Executive Officer
27 August 2020
Letter from the Chief Executive Officer (continued)

8
AIR NEW ZEALAND ANNUAL SHAREHOLDER REVIEW 2020
Our Story
Here is our story.
It’s what we stand
for and where we’re
heading, so if anyone
asks, here’s the story
we love to share.
Great organisations stand for an idea that the
people who work there believe in — a purpose
that’s more than making money.
At Air New Zealand our purpose is about
enriching our country through connecting New
Zealanders to each other and New Zealand to the
world. It’s an idea that’s been at the heart of our
airline from the very beginning – 80 years ago
and what’s made New Zealanders feel proud of
who we are.
To connect our whānau, we work to a set of
common values – we share every day – no matter
where in the business you are. They empower us,
help and guide us on what to do and how to do it.
For our customers, suppliers, communities and
for each other. These are;
• Welcome as a Friend. Extending Manaaki as
if it’s your home, treating people with warmth
and respect, making everyone feel part of
our whānau.
• Be Yourself. Letting your best self shine,
creating an environment where everyone can
be at their best and celebrating our differences.
• Share your Aotearoa. Celebrating and
showcasing all that makes New Zealand unique,
taking care of the environment around us,
supporting local and inspiring travel.
• Can do. Taking initiative, being accountable
and making things happen, safely. Putting
people at the heart of what we do and working
together to get inventive and solve problems.

OUR STRATEGY
AIR NEW ZEALAND GROUP
9
The way we show and express our purpose and
values to our customers is through our brand
promise. The promise we make to them each day.
“Manaaki – taking care further, than any other
airline”. That’s no mean feat. It does demand a lot
from each and every one of us. Unity around the
goal of being seen as the world’s best at what we
do. Starting here, on our home patch and then
expanding out across the globe.
So the focus of our business, systems, processes
and efforts is on;
• putting customer care at the centre of every
product, service or experience we deliver;
• empowering our culture around a core set of
values that we all deeply believe in;
• a simplified, profitable network and fleet;
• sustainability by addressing the one thing
that people care about more than most –
our carbon footprint;
• community by better enabling sustainable
tourism and economic activity, and finally;
• recognising and rewarding our customers
for their loyalty to us.
If we achieve that, we’ll collectively deliver on our
strategy; people as our competitive advantage,
a profitable and resilient airline business,
transformed customer loyalty, leadership in
sustainable aviation and digitally enabled
customers and staff.

Air New Zealand’s Dr Ben Johnston,
Chief Medical Officer and Leeanne
Langridge, General Manager Cabin
Crew answer common questions on
how Covid-19 affects the ability of our
staff and customers to travel safely.
Is it safe to fly?
What makes it safe?
Yes, airline travel is very safe –
I regularly fly by myself or with my
family. The air quality on our jet
aircraft is better than most office
buildings. Any recirculated air
passes through HEPA filters,
which effectively screen out any
bacteria or viruses.
My team and I have been working
with our cabin crew and pilots,
cleaners, customer-facing staff,
line maintenance engineers and
employees right across the business
to ensure everybody feels well
equipped to look after themselves
and our customers.
The simplest way to take care of
yourself while travelling is to be
cautious but sensible – maintain
your distance from people who
are unwell and wash your hands
regularly. We also strongly
encourage customers on our
international flights to wear a mask.
With our recent move back to Alert
Level 3, face coverings are strongly
encouraged for anyone outside
the home, which includes in our
workspaces and on our planes for
essential travellers.
What is Air New Zealand
doing to ensure my safety,
both at the airport and
on-board?
In February, when the extent of
the Covid-19 pandemic began
to unfold, we put a range of
protocols in place to protect our
people and customers. Since
then, we have continued to refine
these protocols as information
about the virus has evolved. We
are doing a number of things
to look after our customers
while they travel. This includes
taking extra steps to clean our
aircraft and lounges, making
hand sanitiser readily available
in airports and on-board, and
providing masks and gloves
for crew, as well as masks for
customers on international
flights, which we strongly
encourage them to wear. With
our recent move back to Alert
levels 3 and 2 in August, we have
issued further guidance around
the use of masks, requiring all
domestic cabin crew in flight,
pilots when interacting with
customers or transiting through
Auckland Airport, and front of
house staff to wear masks, just
to name a few areas.
What do you use to clean
your planes?
We are taking extra steps to
enhance our cleaning procedures
for our aircraft, lounges and
common spaces, which includes
using a stronger disinfectant
product for routine cleaning. This is
a more effective antiviral product,
called Netbiokem, which helps
reduce the risk of our customers
coming into contact with infected
surfaces. We have also increased
the frequency of cleaning for
high touch surfaces and items.
Additionally, there are strict deep
cleaning procedures in place that
the team will use if a sick person
has travelled with us.
What has changed for
crew with the new
quarantine requirements
announced recently?
Because of the importance of
maintaining international air
routes, New Zealand-based
international air crew are mostly
exempt from the requirement
for isolation or quarantine, if they
meet certain conditions both in
flight and during layover.
These conditions include self-
isolating in their hotel room on
layover, having food delivered
to their room, using dedicated
private transport between the
airport and their hotel and wearing
masks while travelling through
offshore airports.
Air crew living in New Zealand
and returning from high risk
destinations are required to self-
isolate, have a Covid-19 test on
day two after their arrival in New
Zealand and continue to self-
isolate until the results of their test
have been returned.
All of these measures are in
place to protect our crew and our
customers, but it does mean a
number of crew may feel isolated
from their friends and family. Many
of our crew have unjustly been the
10
AIR NEW ZEALAND ANNUAL SHAREHOLDER REVIEW 2020
Health & Safety
Dr Ben Johnston —
Chief Medical Officer

How is Air New Zealand
supporting crew during
this time?
I am so proud of how our crew
have stepped up during this
challenging time – the environment
has been incredibly fluid so it’s
been great to see how resilient and
adaptive they have been.
I believe one of the most important
things we have done throughout
this crisis is communicate regularly,
making sure our people know
they can come to us at any time
with questions or concerns. We
have also provided free access to
Employee Assistance Programme
services as we know that everyone
is dealing with a lot at this time and
may need to talk to someone that
can provide some external advice
and perspective. We have also
provided financial support to crew
via our A
-
whina Trust, as we know
that limited flying and reduced
hours has a huge impact on their
personal situations.
For international crew in particular,
we have also worked with hotels
to make the layover experience as
enjoyable as possible. The ability
to access fresh, healthy food via
a delivery service or improving
the outlook of their rooms all
goes towards supporting their
physical and mental wellbeing
while they are offshore and
confined to their rooms.
What is the feeling
amongst crew at the
moment – are people
scared to go to work?
No, our crew are really
passionate and committed
about what they do, and are well
aware of the requirements in
place to keep both them and our
customers safe. Air New Zealand
has its own medical team led
by Chief Medical Officer Dr Ben
Johnston, an internationally
recognised expert in aviation
medicine. Dr Johnston has been
working very closely with the
Ministry of Health and our crew
to arm them with information and
training in the most up to date
health and safety requirements.
Alongside this, we have also put
in a number of our own changes
that go over and above these
requirements, for example,
introducing split groups for our
A320 crew – so there is one
team for flights operating across
the Tasman and one for domestic
flights. We have also made
sure we have the appropriate
physical and emotional support
systems in place.
HEALTH & SAFETY
AIR NEW ZEALAND GROUP
11
Health & Safety (continued)
Leeanne Langridge —
General Manager Cabin Crew
target of the community’s fears of
another Covid-19 spike, which is
hard to see because the protocols
we have in place are robust.
How do you stay on
top of all the evolving
information regarding
Covid-19, interaction with
New Zealand’s Ministry
of Health, discussion with
airline bodies such as IATA?
I am a member of the IATA
Medical Advisory Group so I have
a direct line of communication
with the IATA medical director
and a group of 10 of my peers
from large airlines across the
world. We share information
on a daily basis with a view to
learning from each other and
implementing best practice.
The IATA medical advisor links
with WHO, ICAO, US CDC and
European CDC, foreign civil
aviation regulators, aircraft
manufacturers and NASA just to
name a few, then disseminates
information to IATA member
airlines. That information
includes scientific and policy
publications relevant to airline
risks and interests. I also have
at least weekly discussions
with the team at the Ministry of
Health regarding international
and domestic infection risks,
regular discussions with the NZ
reference lab, ESR, regarding
testing and related science and
epidemiologists and infectious
disease specialists.
Why are crew not subject
to the same quarantine
rules as passengers?
Essentially, it’s because crew don’t
mix with the local community
while on layover in other countries.
The protocols I mentioned earlier,
such as requiring crew to self-
isolate in hotel rooms while away,
use dedicated private transport
et cetera are all in place to ensure
that our crew keep themselves,
and others safe.
Our cabin crew and pilots are
essential workers, just like
supermarket or healthcare
workers, and we are really proud
of their efforts.

AIR NEW ZEALAND ANNUAL SHAREHOLDER REVIEW 2020
12
Health & Safety (continued)
How have crew dealt with
the public backlash around
the potential for them to
bring Covid-19 back into
New Zealand?
It’s been really sad to see our crew
and pilots become the focus of
people’s fears when it comes to
Covid-19 in New Zealand. Our crew
are extremely dedicated to getting
our customers to and from their
destinations safely and have been
working throughout this crisis as
essential workers to do just that.
In my opinion they have done an
amazing job during a very stressful
and unique time in our history, so
it is upsetting and disappointing to
see some people in the community
discriminating against our crew
and their families because of
the job they do. I ask that people
remember that it is other Kiwis,
people’s loved ones, that our crew
are bringing home to New Zealand
– we should be thanking them, not
treating them poorly.
Our crew are doing a great job
keeping New Zealanders and New
Zealand products connected with
each other and I know that I speak
for everyone at Air New Zealand
when I say they have our full support
and admiration.
Is there any support in place
for crew who have departed?
Absolutely. We have tried to do
everything we can to support those
who have unfortunately lost their
roles due to Covid-19. To be clear,
our crew did absolutely nothing
to deserve this and it is a horribly
unfortunate situation, so we wanted
to do everything in our power to
reduce the impact of this blow.
We provided access to financial
and wellbeing resources, provided
Careerdesk CV advice services and
set up livestreams and bespoke
sessions for career advice. We set
up the A
-
whina Trust, which enables
staff to apply for a hardship grant
and also allowed early FlexiSaver
withdrawals. Another important
thing we have done is provide
the opportunity for departing
employees to receive updates on
relevant job opportunities within
Air New Zealand, should they
wish to return when demand has
recovered. We set up redeployment
opportunities both internally and
externally, actively seeking other
opportunities for our staff.
We also created a furlough
mechanism that provides crew with
the option to go on long-term leave
without pay, with first opportunity
to return when demand recovers.
Covid-19 has changed
the nature of work for
international crew and
pilots – how are we
thinking about the longer-
term sustainability of the
additional requirements?
The work of our international
cabin crew has changed markedly
since the emergence of Covid-19.
From testing before flights,
isolating in hotels while offshore
on a layover, to further self-
isolation periods and testing upon
arrival back in New Zealand. It is
certainly a far cry from life prior
to Covid-19. However, our crew
take the responsibility of keeping
themselves, their colleagues, our
customers and the rest of the New
Zealand public safe, very seriously,
so are willing to make this sacrifice
to keep everyone safe.
Our rostering process is now very
different as it needs to reflect the
self-isolation periods required
between flights. We have also set
up an in-house testing centre, to
speed up the process of getting
a test performed, as crew need
confirmation of a negative test prior
to operating to some offshore ports.
Looking forward, we expect these
restrictions will remain in place
given it seems we are still some
time away from a vaccine or another
form of suitable treatment for
Covid-19. As such we have a project
underway reviewing what the crew
experience will look like in the future
to ensure it is as seamless and
pleasant for our crew as possible.

Revenue
Operating revenue for the period declined
16 percent to $4.8 billion, a decrease of
$949 million resulting from border closures and
Covid-19-related travel restrictions. Excluding
the impact of foreign exchange, operating
revenue declined 17 percent.
Passenger revenue declined by 21 percent to
$3.9 billion, reflecting the impact of Covid-19.
Capacity (Available Seat Kilometres, ASK)
reduced by 21 percent, due to the operation
of a skeleton passenger schedule in the final
quarter of the 2020 financial year following
border restrictions across all of the markets
operated by the airline. Prior to this time,
moderate network growth arose from the
annualisation of new routes to Chicago and
Taipei, increased frequency to Singapore and
growth on the Tasman. Demand (Revenue
Passenger Kilometres, RPK) decreased
more than capacity for the year, resulting in
a load factor of 81.4 percent for the period,
a decline on last year. Passenger Revenue
per Available Seat Kilometre (RASK) was
comparable to the prior period.
As a result of government travel
restrictions implemented from February
2020 in response to the Covid-19
pandemic, Air New Zealand reported a loss
before other significant items and taxation
of $87 million
1
. Including the impact of
other significant items, statutory losses
before taxation were $628 million.
AIR NEW ZEALAND GROUP
HEALTH & SAFETY
|
FINANCIAL COMMENTARY13
Financial commentary
1. Earnings before other significant items and taxation represent Earnings stated in compliance with NZ IFRS (Statutory Earnings) after excluding items which
due to their size or nature warrant separate disclosure to assist with understanding the underlying financial performance of the Group. Earnings before other
significant items and taxation is reported within the Group’s audited annual financial statements. Further details are contained within Note 3 of the Group
annual financial statements.

AIR NEW ZEALAND ANNUAL SHAREHOLDER REVIEW 2020
14
Financial commentary (continued)
International long-haul capacity declined
20 percent as moderated growth in the first
nine months of the financial year was more than
offset by the impact of Covid-19 travel restrictions
and border closures. Demand on international
long-haul routes declined 22 percent, with load
factor decreasing 2.4 percentage points to 82.3
percent. International long-haul RASK declined
by 0.7 percent. Excluding the impact of foreign
exchange, long-haul RASK declined 2.2 percent.
Short-haul capacity, including Domestic
declined 23 percent as moderate network
reductions in the first nine months of the
financial year were further reduced by the
impact of Covid-19. Demand declined more
than capacity at 25 percent, with load factors
decreasing by 2.5 percentage points to 80.2
percent. Short-haul RASK improved by 2.7
percent both including and excluding the
impact of foreign exchange.
Cargo revenue was $449 million, an increase
of 15 percent. Excluding the impact of foreign
exchange, cargo revenue increased by 13
percent, driven by cargo only charters, as well
as the New Zealand Government’s International
Airfreight Capacity scheme (IAFC) which
commenced in May 2020 and provided subsidies
on international flights for the movement of
imports and exports to New Zealand.
Contract services and other revenue was $445
million, an increase of 2.3 percent, driven by
higher maintenance activity on contracts for third
parties and charter revenue, partially offset by
reduced ancillary income, lounge revenue and
lower customer activity related to Covid-19. There
was a nominal impact from foreign exchange.
Expenses
Operating expenditure declined by $553 million
or 12 percent, with variable costs declining as
a result of Covid-19 related reductions in
network capacity.
Costs per ASK (CASK) increased 12 percent,
including foreign exchange, fuel, and maintenance
for third party contracts. This adverse movement
is predominantly a result of the inefficiencies
associated with the airline being unable to
operate an optimal level of network capacity
due to Covid-19 border and travel restrictions.
Unfavourable foreign exchange movements and
increased maintenance for third party contracts
(for which there is a corresponding increase in
revenue from third party maintenance contracts)
also contributed to the adverse movement.
Excluding those items, CASK increased 10 percent.
Labour costs were $1.2 billion, reducing by $154
million or 11 percent. Foreign exchange did not
impact labour costs in the period.

AIR NEW ZEALAND GROUP
FINANCIAL COMMENTARY
15
Financial commentary (continued)
Reductions in network activity and headcount
reductions were the largest components of the
lower labour costs, in addition to the removal
of incentive payments and the impact of the
$75 million recognised under the New Zealand
Government’s wage subsidy.
Fuel costs were $1.0 billion, declining by $249
million or 20 percent. Excluding the impact of
foreign exchange, fuel costs reduced by 24
percent. The largest driver of the decline was
reduced volumes reflecting the 21 percent
reduction in capacity, which resulted in $217
million of savings. The average fuel price, net of
hedging also fell $89 million, or 7.0 percent, as
global demand for Singapore Jet Fuel declined
substantially as a consequence of reduced air
travel from Covid-19. A weaker New Zealand Dollar
partially offset the fuel savings, resulting in a
$57 million unfavourable movement from foreign
exchange. Fuel hedge losses as a result of reduced
flying are reflected within other significant items.
Aircraft operations, passenger services and
maintenance costs were $1.3 billion, representing
a decline of $122 million or 8.7 percent. This
was driven by the reduction in network capacity
due to Covid-19 and the resulting decline in
air navigation fees, landing charges, meal and
lounge costs and other variable operating
costs. Cash received under the Government’s
aviation relief package also contributed to the net
decline. These decreases were partially offset by
increased maintenance activity for third parties
and end of lease activity.
Sales and marketing and other expenses
declined by $63 million or 9.8 percent reflecting
lower commission and promotional activity,
which were partially offset by increased property
and digital expenses.
Ownership costs increased by $80 million or
9.6 percent, driven by new aircraft deliveries,
engine overhauls and digital investments, as
well as lower interest income due to a reduction
in cash holdings.
The impact of foreign exchange rate changes on
the revenue and cost base in the period resulted
in an unfavourable foreign exchange movement
of $49 million. After taking into account a $35
million unfavourable movement in hedging,
overall foreign exchange had a net $84 million
adverse impact on the Group result for the period.
Share of Earnings of Associate
Share of earnings of associates has increased
by $2 million to $39 million for the period,
reflecting further growth in engine volumes
from the Christchurch Engine Centre.
Other Significant items
Other significant items of $541 million were
recognised during the period. These relate to
Boeing 777-200ER fleet impairment charges of
$338 million, reorganisation costs of $140 million,
de-designation of hedges of $105 million and the
impact of retrospectively disestablishing fair
value aircraft hedges of $46 million. Other
significant items also include a gain on sale of
$21 million from the sale of landing slots at
London’s Heathrow Airport, as well as a gain
on foreign currency revaluations on uncovered
foreign currency debt of $67 million.
Cash and Financial Position
Cash on hand at 30 June 2020 was $438 million,
a decrease of $617 million from 30 June 2019.
The reduced cash position reflects the impact
of lower customer bookings from March 2020
onwards, refunds issued to customers, fixed asset
purchases and the cost of closing out fuel hedges
during the period. The cash level is currently below
the airline’s previously stated liquidity target range
of $700 million to $1 billion, however is supported
by the $900 million standby loan facility provided
by the New Zealand Government.
Operating cash flows were $230 million, a decline
of 77 percent, reflecting lower earnings and
unfavourable working capital movements, partially
offset by a refund of prior year taxes.
Net gearing increased 17.5 percentage points
to 69.2 percent compared to 1 July 2019
2
, driven
by net losses after taxation, foreign exchange
movements, the payment of the 2019 final ordinary
dividend and investment in the airline’s fleet.
No final dividend for the 2020 financial year has
been declared, consistent with the Board’s decision
on 20 March 2020 to cancel the 2020 interim
ordinary dividend. This is a result of Covid-19 and
the conditions of the $900 million standby loan
facility with the New Zealand Government. This is
the first time since 2005 that the airline has not
paid a dividend to its shareholders and reflects the
significant impact that Covid-19 has had on the
airline’s operations and balance sheet.
2. Gearing has been restated on a comparable basis following the Group’s adoption of NZ IFRS 16,
the new lease accounting standard, which was effective from 1 July 2019.

AIR NEW ZEALAND ANNUAL SHAREHOLDER REVIEW 2020
16
The key changes in profitability, after isolating
the impact of foreign exchange movements,
are set out in the table below
*
:
* The numbers referred to in the Financial Commentary on the previous page have not isolated the impact of foreign exchange.
Change in profitability
June 2019 earnings
before taxation
Passenger capacity
-$1,000m
- Capacity decreased by 21.1 percent due to Covid-19 border closures and
travel restrictions which impacted Asia routes from February 2020 and the
rest of the network from March 2020. Prior to this time, growth arose from the
annualisation of new routes to Chicago and Taipei, increased frequency on
Singapore and growth on the Tasman
Passenger RASK
-$45m
- Revenue per Available Seat Kilometre (RASK) is comparable with the previous year.
Loads decreased by 2.4 percentage points to 81.4 percent
- Long-haul RASK declined by 2.2 percent excluding FX and loads decreased
2.4 percentage points to 82.3 percent
- Short-haul RASK improved by 2.7 percent excluding FX and loads declined
2.5 percentage points to 80.2 percent
Cargo revenue
$52m
- Cargo revenue improved due to the award of cargo only scheduled flights
under the Government's International Airfreight Capacity scheme and
Government subsidies
Contract services and
other revenue
$11m
- Increase in maintenance work for third parties and charter revenue offset by
reduced ancilliary income, lounge revenue and lower customer activity due
to Covid-19
Labour
$154m
- Reduced staffing levels resulting from Covid-19 capacity reductions, suspension
of incentive payments and receipt of wage subsidies
Fuel
$306m
- The average fuel price declined 7.0 percent compared to the prior year (net of
hedging) resulting in a reduction in costs of $89 million. Consumption decreased
by 17.1 percent ($217 million) due to the reduction in scheduled flights arising from
international border closures and travel restrictions
Maintenance
-$37m
- Increase in maintenance for third parties and higher end of lease costs
Aircraft operations and
passenger services
$169m
- Reduced schedule activity due to the Covid-19 pandemic and receipt of aviation
support subsidies offset by price increases in air navigation and landing charges
Sales and marketing and
other expenses
$80m
- Reduced commissions and promotional activity due to the reduction in services
arising from Covid-19 offset by higher property and digital costs
Ownership costs
-$82m
- Increase in depreciation reflecting new aircraft deliveries offset by fleet exits
Net impact of foreign
exchange movements
-$84m
- Net unfavourable impact of currency movements on revenue and costs and lower
foreign exchange hedging gains
Share of earnings of associates
$2m
- Improved earnings from Christchurch Engine Centre driven by growth in
engine volumes
Other significant items
-$536m
- Foreign exchange losses on uncovered debt following retrospective
disestablishment of the fair value aircraft hedge, reorganisation costs, aircraft
impairment resulting from the indefinite grounding of the B777-200ER fleet and
de-designation of hedges as a result of forecast transactions no longer being
expected to occur offset by foreign exchange gains on uncovered debt following
de-designation of revenue hedges and gain on sale of landing slots
June 2020 earnings
before taxation
$382m
-$628m

AIR NEW ZEALAND GROUP
17
Financial Performance
12 MONTHS TO
30 JUNE 2020
$M
12 MONTHS TO
30 JUNE 2019
$M
Operating Revenue
Passenger revenue
Cargo
Contract services and other revenue
3,942
449
445
4,960
390
435
Operating Expenditure
Labour
Fuel
Maintenance
Aircraft operations
Passenger services
Sales and marketing
Foreign exchange gains
Other expenses
4,836
(1,197 )
(1,022)
(4 41)
(575)
(258)
(253)
18
(324)
5,785
(1,351)
(1,271)
(399)
(678)
(319)
(350)
53
(290)
(4,052) (4,605)
Operating Earnings (excluding items below)
Depreciation and amortisation
Rental and lease expenses
784
(841)
-
1,180
(554)
(245)
Earnings Before Finance Costs, Associates, Other Significant Items and Taxation
Net finance costs
Share of earnings of associates (net of taxation)
(57)
(69)
39
381
(31)
37
Earnings Before Other Significant Items and Taxation
Other significant items
(87)
(541)
387
(5)
Earnings Before Taxation
Taxation credit/(expense)
(628)
174
382
(106)
Net (Loss)/Profit Attributable to Shareholders of Parent Company(454) 276
Interim and final dividends declared per share (cents)
Net tangible assets per share (cents)
-
101
22.0
161
Cash Flows
12 MONTHS TO
30 JUNE 2020
$M
12 MONTHS TO
30 JUNE 2019
$M
Cash inflows from operating activities
Cash outflows from operating activities
4,74 0
(4,510)
5,915
(4,929)
Net cash flow from operating activities
Net cash flow from investing activities
Net cash flow from financing activities
230
(542)
(305)
986
(883)
(391)
Decrease in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
(617)
1,055
(288)
1,343
Cash and Cash Equivalents at the End of the Year 438 1,055
Certain balances for the year ended 30 June 2019 have been restated following the International Financial Reporting Interpretations Committee
(“IFRIC”) publishing an agenda decision in September 2019 in respect of a “Fair Value Hedge of Foreign Currency Risk on Non-Financial Assets”.
The new interpretation by IFRIC of the principles of IFRS 9 - Financial Instruments no longer permits certain fair value hedges of underlying United
States Dollar aircraft values previously undertaken by the Group. Refer to Note 3 and 27 of the Group Annual Financial Statements for further details.
CHANGE IN PROFITABILITY
|
FINANCIAL SUMMARY
Financial summary

Financial Position
A S AT
30 JUNE 2020
$M
30 JUNE 2019
$M
Bank and short-term deposits
Trade and other receivables
Inventories
Derivative financial assets
Income taxation
Other assets
438
305
106
38
3
119
1,055
564
81
48
-
56
Total Current Assets 1,009 1,804
Trade and other receivables
Property, plant and equipment
Right of use assets
Intangible assets
Investments in other entities
Other assets
142
3,336
2,357
186
162
351
64
5,133
-
186
149
285
Total Non-Current Assets 6,534 5,817
Total Assets 7, 5 4 3 7,62 1
Trade and other payables
Revenue in advance
Interest-bearing liabilities
Lease liabilities
Derivative financial liabilities
Provisions
Income taxation
Other liabilities
322
828
160
353
116
104
-
219
585
1,372
307
-
32
105
25
240
Total Current Liabilities 2,102 2,666
Revenue in advance
Interest-bearing liabilities
Lease liabilities
Provisions
Other liabilities
Deferred taxation
491
1,303
1,885
295
32
117
200
2,290
-
165
42
266
Total Non-Current Liabilities 4,123 2,963
Total Liabilities 6,225 5,629
Net Assets 1,318 1,992

Share capital
Reserves
2,209
(891)
2,219
(227)
Total Equity 1,318 1,992
The summary financial information has been derived from, and should be read in conjunction with, the Air New Zealand Group Annual Financial
Statements (the ‘Annual Financial Statements’). The Annual Financial Statements, dated 27 August 2020, are available at: airnzinvestor.com.
The summary financial information cannot be expected to provide as complete an understanding as provided by the Annual Financial Statements.
The accounting policies used in these financial statements are attached in the notes to the Annual Financial Statements.
Share RegistrarAnnual Financial StatementsInvestor Relations Office
LINK MARKET SERVICES LIMITED
Level 11, Deloitte Centre
80 Queen Street, Auckland 1010, New Zealand
PO Box 91976, Auckland 1142, New Zealand
Email: enquiries@linkmarketservices.com
Website: linkmarketservices.com
New Zealand Phone: (64 9) 375 5998
New Zealand Fax: (64 9) 375 5990
Australia Phone: (61) 1300 554 474
The Annual Financial Statements are available
by visiting our website airnzinvestor.com
OR you may elect to have a copy sent to you
by contacting Investor Relations.
ELECTRONIC SHAREHOLDER
COMMUNICATION
If you would like to receive all investor
communications electronically, including
interim and annual shareholder reviews,
please visit the Link Market Services website
linkmarketservices.com or contact them
directly (details to the left).
Private Bag 92007, Auckland 1142, New Zealand
Phone: 0800 22 22 18 (New Zealand)
Phone: (64 9) 336 2607 (Overseas)
Fax: (64 9) 336 2664
Email: investor@airnz.co.nz
Website: airnzinvestor.com
AIR NEW ZEALAND ANNUAL SHAREHOLDER REVIEW 2020
18
Financial summary (continued)

AIR NEW ZEALAND GROUP
19FINANCIAL SUMMARY (CONTINUED)
|
KEY FINANCIAL INFORMATION

H E TĀ N G ATA , H E TĀ N G ATA , H E TĀ N G ATA .

---

2020
ANNUAL
FINANCIAL
R E S U LT S
Then, Now,
Always.

AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2020

AIR NEW ZEALAND GROUP
1
*This document, in conjunction with the Air New Zealand Annual Shareholder Review 2020, constitutes the 2020 Annual Report to shareholders of Air New Zealand Limited.
DIRECTORS’ STATEMENT
The directors of Air New Zealand Limited are pleased to present to shareholders the Annual Report* and financial statements for
Air New Zealand and its controlled entities (together the “Group”) for the year to 30 June 2020.
The directors are responsible for presenting financial statements in accordance with New Zealand law and generally accepted accounting
practice, which give a true and fair view of the financial position of the Group as at 30 June 2020 and the results of the Group’s operations
and cash flows for the year ended on that date.
The directors consider the financial statements of the Group have been prepared using accounting policies which have been consistently
applied and supported by reasonable judgements and estimates and that all relevant financial reporting and accounting standards have
been followed.
The directors believe that proper accounting records have been kept in accordance with the requirements of the Financial Markets
Conduct Act 2013.
The directors consider that they have taken adequate steps to safeguard the assets of the Group, and to prevent and detect fraud and
other irregularities. Internal control procedures are also considered to be sufficient to provide a reasonable assurance as to the integrity
and reliability of the financial statements.
This Annual Report is signed on behalf of the Board by:
Dame Therese Walsh Jan Dawson
Chairman Deputy Chairman
27 August 2020
Contents
Statement of Financial Performance 2
Statement of Comprehensive Income 3
Statement of Changes In Equity 4
Statement of Financial Position 5
Statement of Cash Flows 6
Statement of Accounting Policies 7
Notes to the Financial Statements
1. Revenue Recognition and Segmental Information 10
2. Expenses 11
3. Other Significant Items 12
4. Taxation 13
5. Earnings Per Share 14
6. Cash and Cash Equivalents 15
7. Trade and Other Receivables 15
8. Inventories 16
9. Other Assets 16
10. Property, Plant and Equipment 17
11. Right of Use Assets 20
12. Intangible Assets 21
13. Investments in Other Entities 22
14. Revenue in Advance 23
15. Interest-Bearing Liabilities 24
16. Lease Liabilities 25
17. Provisions 28
18. Other Liabilities 29
19. Distributions to Owners 29
20. Share Capital 30
21. Reserves 33
22. Commitments 33
23. Contingent Liabilities 34
24. Financial Risk Management 34
25. Offsetting Financial Assets and Financial Liabilities 44
26. Related Parties 45
27. Impact of New Accounting Standards and Interpretations 46
Independent Auditor’s Report 49
Five Year Statistical Review 56
Corporate Governance Statement 60
Climate-Related Disclosures 72
Directors’ Profiles 74
Interests Register 76
Directors’ Interests in Air New Zealand Securities 77
Indemnities and Insurance 77
Employee Remuneration 78
Subsidiary and Joint Venture Companies 82
Other Disclosures 83
Operating Fleet Statistics 84
Securities Statistics 85
General Information 86
Shareholder Directory 87

The accompanying accounting policies and notes form part of these financial statements.
2
AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2020
NOTES

2020
$M

2019
$M
Operating Revenue
Passenger revenue
Cargo
Contract services
Other revenue

3,942
449
216
229
4,960
390
197
238
Operating Expenditure
Labour
Fuel
Maintenance
Aircraft operations
Passenger services
Sales and marketing
Foreign exchange gains
Other expenses
14,836
(1,197 )
(1,022)
(4 41)
(575)
(258)
(253)
18
(324)
5,785
(1,351)
(1,271)
(399)
(678)
(319)
(350)
53
(290)
2(4,052) (4,605)
Operating Earnings (excluding items below)
Depreciation and amortisation
Rental and lease expenses16
784
(841)
-
1,180
(554)
(245)
Earnings Before Finance Costs, Associates, Other Significant Items and Taxation
Finance income
Finance costs
Share of earnings of associates (net of taxation)13
(57)
34
(103)
39
381
48
(79)
37
Earnings Before Other Significant Items and Taxation
Other significant items3
(87)
(541)
387
(5)
Earnings Before Taxation
Taxation credit/(expense)4
(628)
174
382
(106)
Net (Loss)/Profit Attributable to Shareholders of Parent Company(454) 276
Per Share Information:
Basic earnings per share (cents)
Diluted earnings per share (cents)
Interim and final dividends declared per share (cents)
Net tangible assets per share (cents)
5
5
19
(40.4)
(40.4)
-
101
24.6
24.4
22.0
161



STATEMENT OF FINANCIAL PERFORMANCE
FOR THE YEAR TO 30 JUNE 2020

The accompanying accounting policies and notes form part of these financial statements.
3
AIR NEW ZEALAND GROUP
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR TO 30 JUNE 2020
NOTE

2020
$M

2019
$M
Net (Loss)/Profit for the Year
Other Comprehensive Income:
Items that will not be reclassified to profit or loss:
Actuarial gains/(losses) on defined benefit plans
Taxation on above reserve movements4
(454)
6
(2)
276
(9)
3
Total items that will not be reclassified to profit or loss
Items that may be reclassified subsequently to profit or loss:
Changes in fair value of cash flow hedges
Transfers to net (loss)/profit from cash flow hedge reserve
Changes in cost of hedging reserve
Taxation on above reserve movements
4
(249)
112
9
37
(6)
(41)
(85)
(8)
38
Total items that may be reclassified subsequently to profit or loss(91)(96)
Total Other Comprehensive Loss for the Year, Net of Taxation(87)(102)
Total Comprehensive (Loss)/Income for the Year, Attributable to Shareholders of the Parent Company(541)174

The accompanying accounting policies and notes form part of these financial statements.
4
AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2020
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR TO 30 JUNE 2020
NOTES
SHARE
CAPITAL
$M
HEDGE
RESERVES
$M
FOREIGN
CURRENCY
TRANSLATION
RESERVE
$M
GENERAL
RESERVES
$M
TOTAL
EQUITY
$M
Balance as at 1 July 20192,219(31)(12)(87)2,089
Application of IFRIC interpretation27--- (97) (97)
Restated Balance as at 1 July 2019 2,219 (31) (12) (184) 1,992
Net loss for the year
Other comprehensive loss for the year
-
-
-
(92)
-
1
(454)
4
(454)
(87)
Total Comprehensive Loss for the Year - (92) 1 (450) (541)
Transactions with Owners:
Equity-settled share-based payments (net of taxation)
Equity settlements of long-term incentive obligations
Dividends on Ordinary Shares
4, 20
20
19
5
(15)
-
-
-
-
-
-
-
-
-
(123)
5
(15)
(123)
Total Transactions with Owners(10) - - (123) (133)
Balance as at 30 June 2020 2,209 (123) (11) (757) 1,318
NOTES
SHARE
CAPITAL
$M
HEDGE
RESERVES
$M
FOREIGN
CURRENCY
TRANSLATION
RESERVE
$M
GENERAL
RESERVES
$M
TOTAL
EQUITY
$M
Balance as at 1 July 2018 2,226 66 (13) (103) 2,176
Application of IFRIC interpretation27 - - - (103) (103)
Restated Balance as at 1 July 2018 2,226 66 (13) (206) 2,073
Net profit for the year
Other comprehensive loss for the year
-
-
-
(97)
-
1
276
(6)
276
(102)
Total Comprehensive Income for the Year - (97) 1 270 174
Transactions with Owners:
Equity-settled share-based payments (net of taxation)
Equity settlements of long-term incentive obligations
Dividends on Ordinary Shares
4, 20
20
19
7
(14)
-
-
-
-
-
-
-
-
-
(248)
7
(14)
(248)
Total Transactions with Owners(7) - - (248) (255)
Balance as at 30 June 2019 2,219 (31) (12) (184) 1,992

The accompanying accounting policies and notes form part of these financial statements.
5
AIR NEW ZEALAND GROUP
NOTES

2020
$M

2019
$M
Current Assets
Bank and short-term deposits
Trade and other receivables
Inventories
Derivative financial assets
Income taxation
Other assets
6
7
8
24
9

438
305
106
38
3
119

1,055
564
81
48
-
56
Total Current Assets 1,009 1,804
Non-Current Assets
Trade and other receivables
Property, plant and equipment
Right of use assets
Intangible assets
Investments in other entities
Other assets
7
10
11
12
13
9
142
3,336
2,357
186
162
351
64
5,133
-
186
149
285
Total Non-Current Assets 6,534 5,817
Total Assets 7, 5 4 3 7,6 2 1
Current Liabilities
Trade and other payables
Revenue in advance
Interest-bearing liabilities
Lease liabilities
Derivative financial liabilities
Provisions
Income taxation
Other liabilities
14
15
16
24
17
18
322
828
160
353
116
104
-
219
585
1,372
307
-
32
105
25
240
Total Current Liabilities 2,102 2,666
Non-Current Liabilities
Revenue in advance
Interest-bearing liabilities
Lease liabilities
Provisions
Other liabilities
Deferred taxation
14
15
16
17
18
4
491
1,303
1,885
295
32
117
200
2,290
-
165
42
266
Total Non-Current Liabilities 4,123 2,963
Total Liabilities 6,225 5,629
Net Assets 1,318 1,992
Equity
Share capital
Reserves
20
21
2,209
(891)
2,219
(227)
Total Equity 1,318 1,992

Dame Therese Walsh
Chairman
For and on behalf of the Board, 27 August 2020
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2020
Jan Dawson
Deputy Chairman

The accompanying accounting policies and notes form part of these financial statements.
6
AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2020
NOTES

2020
$M

2019
$M
Cash Flows from Operating Activities
Receipts from customers
Payments to suppliers and employees
Income tax refunded/(paid)
Interest paid
Interest received

4,660
(4,418)
40
(92)
40
5,869
(4,835)
(23)
(71)
46
Net Cash Flow from Operating Activities6230986
Cash Flows from Investing Activities
Disposal of property, plant and equipment, intangibles and assets held for resale
Proceeds from sale of slots
Distribution from associates
Acquisition of property, plant and equipment, right of use assets and intangibles
Interest-bearing asset payments
Investment in associate
26
67
42
35
(615)
(66)
(5)
13
-
7
(821)
(82)
-
Net Cash Flow from Investing Activities(542)(883)
Cash Flows from Financing Activities
Interest-bearing liabilities drawdowns
Lease liabilities drawdowns
Rollover of foreign exchange contracts*
Equity settlements of long-term incentive obligations
Interest-bearing liabilities payments
Lease liabilities payments
Dividends on Ordinary Shares
16
20
16
19
45
225
74
(15)
(154)
(350)
(130)
263
-
58
(14)
(438)
-
(260)
Net Cash Flow from Financing Activities(305)(391)
Decrease in Cash and Cash Equivalents
Cash and cash equivalents at the beginning of the year
(617)
1,055
(288)
1,343
Cash and Cash Equivalents at the End of the Year64381,055
*Relates to gains/losses on rollover of foreign exchange contracts that hedge exposures in other financial periods.
STATEMENT OF CASH FLOWS
FOR THE YEAR TO 30 JUNE 2020

7
STATEMENT OF ACCOUNTING POLICIES
FOR THE YEAR TO 30 JUNE 2020
AIR NEW ZEALAND GROUP
Reporting entity
The financial statements presented are those of the consolidated Air New Zealand Group (the Group), including Air New Zealand Limited
and its subsidiaries, joint ventures and associates.
Air New Zealand’s primary business is the transportation of passengers and cargo on scheduled airline services.
Statutory base
The parent company, Air New Zealand Limited, is a profit-oriented entity, domiciled in New Zealand, registered under the Companies
Act 1993 and listed on the New Zealand and Australian Stock Exchanges. Air New Zealand Limited is a FMC Reporting Entity under the
Financial Markets Conduct Act 2013 and the Financial Reporting Act 2013.
Basis of preparation
Air New Zealand prepares its financial statements in accordance with New Zealand Generally Accepted Accounting Practice (“NZ GAAP”).
NZ GAAP consists of New Zealand equivalents to International Financial Reporting Standards (“NZ IFRS”) and other applicable financial
reporting standards as appropriate to profit-oriented entities. These financial statements comply with NZ IFRS and International Financial
Reporting Standards (“IFRS”).
The financial statements were approved by the Board of Directors on 27 August 2020.
Forecast Liquidity
From March 2020 the Group reduced its network capacity by more than 95% as demand declined following border closures and
international travel restrictions as a result of the Covid-19 pandemic. As a result of the severity of the pandemic, the rapid deterioration
of worldwide and domestic travel, and the expected recovery period of global demand the Board has considered the ability of the Group
to continue to operate as a going concern for at least 12 months from the date the financial statements are authorised.
In response to the significant reduction in operations, the following actions to manage the operations and liquidity of the Group
were undertaken:
- On 27 May 2020 a standby Government loan facility of $900 million was secured to support the future business operations. The facility
is available until 27 May 2022 and remained undrawn as at balance date (refer note 26 for further details). The Board is considering the
future capital structure of the Group with a view to enabling the settlement of this facility;
- The Board cancelled the interim dividend payable to shareholders for the 2020 financial year;
- Deferral or cancellation of approximately $700 million of capital expenditure for the period through to December 2022 including
deferrals of Airbus A321 NEO deliveries;
- Labour reductions of 30%, approximately 4,000 employees, including a reduction in the Executive team of 30%;
- Short-term incentive schemes for all employees were suspended. The Chief Executive and Executive team salaries, and the Directors’
fees were reduced by 15% for the period through to 31 December 2020;
- A wage freeze for employees on individual employment agreements;
- A hiring freeze was implemented and voluntary leave options undertaken;
- Government grants were applied for in relation to wage subsidies, aviation support packages and international airfreight services;
- Reductions were made across all other areas of the airline’s cost base including cancellation of all non-essential spend, reduction in
lease costs and modifications of various vendor and supplier terms;
- Following Covid-19 related tax relief being provided by the New Zealand Government, the Group elected to carrying back the 2020
financial year income tax loss to the 2019 financial year. The Group was granted a deferral of FBT and PAYE for the period 1 July 2020
to 30 September 2021. The FBT and PAYE liabilities arising during this period will be settled during October 2021 to March 2022; and
- The Boeing 777-200ER and Boeing 777-300ER fleets were grounded until at least the end of the 2020 calendar year.
The Group has cash of $438 million and the standby Government loan facility of $900 million at 30 June 2020 and has taken the mitigating
actions detailed above to increase the Group’s liquidity.
However, in view of the uncertainties created by the Covid-19 pandemic, the Group has modelled two scenarios, the Base and Downside
Cases for the going concern period to support its assessment of the use of going concern basis for the year ended 30 June 2020.
The Base Case reflects the Board and management’s view of the anticipated timing and recovery from the impact of the pandemic on the
Group over the period covered by the going concern assessment.
The key inputs and assumptions used in the Base Case include:
- The recovery of capacity, which has been modelled regionally with a gradual recovery across the Group from the reduction of 95%,
as measured against 2019 levels, from March 2020 to 55% lower at June 2021 and 45% lower at the end of the first quarter of the 2022
financial year (Q1 FY22).

8
STATEMENT OF ACCOUNTING POLICIES CONTINUED
FOR THE YEAR TO 30 JUNE 2020
AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2020
- The rate of growth varies across markets based on domestic and international travel restrictions and assumptions on the opening of
international borders. The scenario assumes that the Domestic network increases to 25% lower than pre-Covid-19 levels by June 2021
and remains at 25% lower during Q1 FY22. Short-haul international markets are assumed to open in a phased approach during the 2021
financial year, reaching 20% lower at June 2021 and 10% to 15% lower by the end of Q1 FY22. The long-haul international network is
assumed to operate minimal capacity which include operations of freight services and the repatriation of passengers through to Q1 FY22.
- Revenue per Available Seat Kilometre (RASK) for the Group is expected to remain largely consistent with the 2019 levels over the going
concern period although this assumption is dependent on the mix of Domestic versus Short-haul, business versus leisure travel and
the ability and timing to restart the networks.
The Downside Case applies further stress to the Base Case by contemplating a longer adverse impact driven by ongoing travel restrictions
in the international markets and a more gradual recovery of demand.
- Capacity is assumed to more slowly build back to be 60% lower than pre-Covid-19 levels by June 2021 and 50% lower by Q1 FY22.
This growth path is primarily driven by delays in short-haul international markets and continued delay of long-haul revenue due to
border restrictions.
- RASK for the Domestic network is assumed to be lower than the pre-Covid-19 levels, reflecting changes to the business and leisure
mix and International RASK is assumed to be constant with pre-Covid-19 levels as capacity is adjusted to reflect demand.
In addition to the Base and Downside Cases, the Board has considered additional sensitivities of adverse factors on capacity levels, delays
in border openings, short-term domestic restrictions, RASK, sales profile, fuel price, foreign exchange, refunds and credit assumptions,
direct and overhead costs. The scenarios were particularly sensitive to changes in assumptions relating to delays in border re-opening,
RASK, sales profile and fuel prices.
Based on the liquidity shown in the Base and Downside Cases and the additional sensitivity analyses completed, the Board has a
reasonable expectation that the Group has sufficient liquidity to continue to operate for the foreseeable future and therefore the adoption
of the going concern basis for the financial statements is appropriate.
Given the uncertainty surrounding the timeframes in which travel restrictions and border re-openings may occur, the potential for future
waves of the Covid-19 pandemic and the severity of the economic impact, the Group is not able to provide certainty that there may not be
more severe downside scenarios to such factors as capacity, timing and RASK, than those which they have considered. While such severe
scenarios are not considered likely, in the event a materially more adverse scenario occurs, then the Group would consider a number of
further actions in relation to the extent of cost cutting and the need for additional funding over and above what is currently in place.
Basis of measurement
The financial statements have been prepared on the historical cost basis with the exception of certain items as identified in specific
accounting policies and are presented in New Zealand Dollars which is the Group’s functional currency.
Use of accounting estimates and judgements
The preparation of financial statements requires the use of certain critical accounting estimates. It also requires the directors to exercise
their judgement in the process of applying the Group’s accounting policies. Estimates and associated assumptions are based on historical
experience and other factors, as appropriate to the particular circumstances. The Group reviews the estimates and assumptions on an
ongoing basis.
Areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial
statements are disclosed within the specific accounting policy or note as shown below:
Area of estimate or judgement Note
Forecasted liquidity Statement of accounting policies
Revenue in advance Note 1 Revenue recognition and segmental information
Note 14 Revenue in advance
Aircraft lease return provisions Note 17 Provisions
Estimated impairment of non-financial assets ‘Impairment’ accounting policy
Note 10 Property, plant and equipment
Note 11 Right of use assets
Residual values and useful lives of aircraft related assets Note 10 Property, plant and equipment
Note 11 Right of use assets
Reassessment of probability of forecast hedged cash flows Note 24 Financial Risk Management
Significant estimates are designated by an
symbol in the notes to the financial statements.
Significant accounting policies
Accounting policies are disclosed within each of the applicable notes to the financial statements and are designated by a symbol.
The principal accounting policies applied in the preparation of these financial statements have been consistently applied to all periods
presented, except as detailed over page.

9
STATEMENT OF ACCOUNTING POLICIES CONTINUED
FOR THE YEAR TO 30 JUNE 2020
AIR NEW ZEALAND GROUP
The Group adopted the requirements of NZ IFRS 16 - Leases with effect from 1 July 2019. This standard has significantly changed the
accounting treatment of leases by lessees. The previous dual accounting model for lessees which distinguished between on-balance sheet
finance leases and off-balance sheet operating leases, no longer applies. Instead, there is now a single, on-balance sheet accounting model
for all leases. Lessor accounting remains similar to previous practice. The Group has also adopted the requirements of Covid-19-Related
Rent Concessions. This amendment to NZ IFRS 16 allows lessees not to assess whether particular Covid-19-related rent concessions are
lease modifications. The amendment becomes effective for annual reporting periods commencing on or after 1 June 2020. The Group
adopted the Amendment early with effect from 1 July 2019.
The Group applied the requirements of NZ IFRS 16 using the modified retrospective approach which means that comparative information
has not been restated and continues to be reported under previous accounting policies. The details of the previous accounting policies are
disclosed separately in Notes 11, 16 and 22 and further details of the impact of the standard, including transitional adjustments arising on
adoption, are included in Note 27.
In September 2019, the International Financial Reporting Interpretations Committee (“IFRIC”) published an agenda decision in respect
of a “Fair Value Hedge of Foreign Currency Risk on Non-Financial Assets”. The new interpretation by IFRIC of the principles of IFRS 9 -
Financial Instruments no longer permits certain fair value hedges of underlying United States Dollar aircraft values previously undertaken
by the Group. The interpretation has been applied retrospectively and comparative information within the financial statements restated
accordingly. Further details are set out in Notes 3 and 27.
The Group adopted the requirements of NZ IFRIC 23 - Uncertainty over Income Tax Treatments with effect from 1 July 2019. It clarifies how
to apply the recognition and measurement requirements in NZ IAS 12 - Taxation when there is uncertainty over income tax treatments.
This Interpretation has not had any impact on the financial statements.
The following NZ IFRSs and Interpretations, which have been issued but are not yet effective, have been identified as those that may
impact Air New Zealand in the period of their initial application, and have not yet been adopted by the Group.
NZ IFRS 17 - Insurance Contracts has not been adopted early. It provides consistent principles for all aspects of accounting for insurance
contracts. This standard, which becomes effective for annual periods commencing on or after 1 January 2023, will not have a significant
impact on the financial statements.
The significant accounting policies which are pervasive throughout the financial statements are set out below. Other significant
accounting policies which are specific to certain transactions or balances are set out within the particular note to which they relate.
Basis of consolidation
The consolidated financial statements include those of Air New Zealand Limited and its subsidiaries, accounted for using the acquisition
method, and the results of its associates and joint ventures, accounted for using the equity method.
All material intercompany transactions, balances and unrealised gains on transactions between group companies are eliminated on
consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Unrealised gains on transactions between the Group, joint ventures and its associates are eliminated to the extent of the Group’s interest in
the joint ventures and associates.
Where a business combination is achieved in stages, previously held equity interests in the acquiree are remeasured to fair value at the
acquisition date and any corresponding gain or loss is recognised in the Statement of Financial Performance.
Foreign currency translation
Functional currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic
environment in which the entity operates (the “functional currency”).
Transactions and balances
Foreign currency transactions are converted into the relevant functional currency using exchange rates approximating those at
transaction date. Monetary assets and liabilities denominated in foreign currencies at balance date are translated at the exchange rate at
that date. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the
exchange rate at the date of the transaction. Foreign exchange gains or losses are recognised in the Statement of Financial Performance,
except when deferred in equity as qualifying cash flow hedges and qualifying net investment hedges.
Group companies
The results and financial position of all group entities that have a functional currency different from the presentation currency are
translated into the presentation currency as follows:
(a) assets and liabilities are translated at the closing rate at the reporting date;
(b) income and expenses are translated at exchange rates approximating those at transaction date; and
(c) all resulting exchange differences are recognised as a separate component of equity and in Other Comprehensive Income
(within Foreign Currency Translation Reserve).
On consolidation, exchange differences arising from the translation of the net investment in foreign entities, and of borrowings and other
currency instruments designated as hedges of such investments, are taken to equity.

10
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR TO 30 JUNE 2020
AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2020
Impairment
Non-financial assets are reviewed at each reporting date to determine whether there are any indicators that the carrying amount may
not be recoverable. If any such indicators exist, the asset’s recoverable amount is estimated. The recoverable amount is the higher of
an asset’s fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their
present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
An impairment loss is recognised in the Statement of Financial Performance for the amount by which the asset’s carrying amount exceeds
its recoverable amount. For the purposes of assessing impairment, assets are grouped at the lowest level for which there are separately
identifiable cash flows.
The carrying value of financial assets is assessed at each reporting date to determine whether there is any objective evidence of
impairment. Where necessary, the Group recognises provisions for expected credit losses based on 12-month or lifetime losses,
depending whether there has been a significant increase in credit risk since initial recognition. The Group considers reasonable and
supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative
information, based on the Group’s historical experience and informed credit assessment, including forward-looking information.
1. Revenue Recognition and Segmental Information
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue
can be reliably measured, regardless of when payment is made. Revenue is measured at the fair value of the consideration
received or receivable. Specific accounting policies are as follows:
Passenger and cargo revenue
Passenger and cargo sales revenue is recognised in revenue in advance at the fair value of the consideration received
and allocated to each flight sector based on industry agreements. Amounts for each sector of the ticket are transferred to
revenue in the Statement of Financial Performance when the actual carriage is performed. Unused tickets are recognised
as revenue using estimates regarding the timing of recognition based on the terms and conditions of the ticket and
historical trends.
The Group operates various code share and alliance arrangements. Revenue under these arrangements is recognised when
the Group performs the carriage or otherwise fulfils all relevant contractual commitments.
Where one or more sectors are operated by another carrier the amount of the consideration received from the customer less
any amount payable to the other carrier is recognised in revenue on a net basis unless the Group has primary responsibility
for providing the service. Where the Group has primary responsibility for providing the service the amounts are recognised
gross within revenue and expenses.
Government grants which provide financial support to maintain certain transportation services are recognised within
revenue in the Statement of Financial Performance when the service is provided and the grant conditions are satisfied.
Loyalty programmes
Revenues associated with the award of Airpoints Dollars to Airpoints members as part of the initial sales transaction is
determined by reference to the relative standalone selling prices. These revenues as well as consideration received in respect
of sales of Airpoints Dollars to third parties is deferred to revenue in advance (net of estimated expiry) until such time as the
Airpoints member has redeemed their points. The estimate of expiry is based upon historical experience, assessments of
changes in customer behaviour and availability of redemption opportunities (such as international air operating capacity) and
is recognised in net passenger revenue in proportion to the pattern of rights exercised by the customer.
Contract services revenue
Where contract related services are performed over a contractually agreed period, and the amount of revenue and related
costs can be reliably measured, revenue is recognised based on the proportion of contract costs for work performed to date
relative to the estimated total costs. Other contract related revenue is recognised as services are performed.
Other revenue
Other revenue includes lounge revenue, Koru membership subscriptions, commissions and fees and is recognised at the
time the service is provided. Dividend revenue is recognised when the right to receive payment is established.
Finance income
Interest revenue from investments and fixed deposits is recognised as it accrues, using the effective interest method
where appropriate.
Cargo revenue
On 30 April 2020, following a tender process, the Group was awarded a grant to supply international airfreight services to the New Zealand
Government through the Ministry of Transport as part of its efforts to ensure the supply of critical imports and maintain economic benefits
of high value New Zealand exports during the Covid-19 pandemic. The arrangement was for a period through to 30 June 2020 and was
subsequently renewed through to 30 November 2020. The award was negotiated on an arm’s length basis using standard commercial
terms. During the year ended 30 June 2020 an amount of $21 million was recognised in the Statement of Financial Performance within
Cargo revenue (30 June 2019: Nil). Conditions attached to the grant have been satisfied as at balance date.

11
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR TO 30 JUNE 2020
AIR NEW ZEALAND GROUP
1. Revenue Recognition and Segmental Information (continued)
Segmental information
Air New Zealand operates predominantly 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. Resource allocation decisions across the network are
made to optimise the consolidated Group’s financial result.
2020
$M
2019
$M
Analysis of revenue by geographical region of original sale
New Zealand
Australia and Pacific Islands
United Kingdom and Europe
Asia
America
2,894
532
233
446
731
3,409
698
283
519
876
Total operating revenue4,8365,785
The principal non-current assets of the Group are the aircraft fleet which is registered in New Zealand and employed across the
worldwide network. Accordingly, there is no reasonable basis for allocating the assets to geographical segments.
2. Expenses
Additional information in respect of expenses included within the Statement of Financial Performance is as follows:
2020
$M
2019
$M
Superannuation expense
Audit and review of financial statements*
56
1
55
1
* In addition to fees paid for the audit and review of the financial statements of $1,170k (30 June 2019: $1,115k), other fees were paid
for assurance engagements including Greenhouse Gas inventory review of $20k (30 June 2019: $18k), student fee protection audit
of $5k (30 June 2019: $5k), US Passenger Facility Charge audit of $22k (30 June 2019: $27k) and a Singapore branch audit file review
of $4k (30 June 2019: nil). Non-assurance fees were paid for tax compliance work undertaken for the Corporate Taxpayers Group of
$17k (30 June 2019: $17k) and sustainability reporting of $15k (30 June 2019: $15k). In the 2019 financial year, non-assurance fees of
$51k were paid for a social impact assessment.
Government grants and subsidies
Government grants and subsidies which compensate the Group for expenses incurred are recognised in the Statement of
Financial Performance on a systematic basis over the period in which the related costs are recognised when they become
unconditional. Grants and subsidies are reported on a net basis in the same line as the related expense.
2020
$M
2019
$M
Government grants and subsidies recognised in the Statement of Financial Performance include:
Wage subsidy (recognised within ‘Labour’)
Aviation support grant (recognised within ‘Passenger services’)
Aviation support grant (recognised within ‘Aircraft operations’)
Aviation support grant (recognised within ‘Other expenses’)

75
6
17
4

-
-
-
-
Given the significant impact that Covid-19 has had on the New Zealand economy the New Zealand Government through the Ministry
of Social Development provided wage subsidies for a 12 week period from 8 April 2020 through to the end of the financial year for
those businesses which could demonstrate a 30% decline in revenues as a result of the pandemic. The wage subsidy was recognised
within Labour expenses as an offset to the underlying labour cost. Conditions attached to the government subsidy which has been
recognised in the Statement of Financial Performance to 30 June 2020 have been satisfied. In July 2020 the Group received a further
$42 million in wage subsidies from the Ministry of Social Development for a 8 week period from 2 July 2020.
In May 2020 the New Zealand Government through the Ministry of Transport announced an aviation support package as a result
of the impact of Covid-19 which included financial support to airlines to pay passenger-based government charges and Airways
related fees. The package covers the period from 1 March 2020 through to 31 August 2020. Conditions attached to the government
assistance which has been recognised to 30 June 2020 have been satisfied.

12
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR TO 30 JUNE 2020
AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2020
3. Other Significant Items
Other significant items are items of revenue or expenditure which due to their size and nature warrant separate
disclosure to assist with the understanding of the underlying financial performance of the Group.
2020
$M
2019
$M
Foreign exchange losses on debt and leases, no longer offset by foreign exchange gains on the
hedged item, following:
- disestablishment of fair value hedges
Amounts transferred from the cash flow hedge reserve where the forecast transaction is no longer
expected to occur
- fuel
- foreign exchange
Foreign exchange gains on uncovered interest-bearing liabilities and lease liabilities
Aircraft impairment expense
Reorganisation costs
Gain on sale of landing slots
(46)
(122)
17
67
(338)
(140)
21
(5)

-
-
-
-
-
-
(541)(5)
Foreign exchange losses on debt and leases, no longer offset by foreign exchange gains on the hedged item
Disestablishment of fair value hedges
In September 2019, the International Financial Reporting Interpretations Committee (“IFRIC”) published an agenda decision
in respect of a “Fair Value Hedge of Foreign Currency Risk on Non-Financial Assets”. The interpretation issued by IFRIC of the
principles of IFRS 9 - Financial Instruments no longer permits certain fair value hedges of underlying United States Dollar aircraft
values which were previously undertaken by the Group. The interpretation has been applied retrospectively in the financial
statements. The impact on the comparative period is set out in Note 27.
As a result of the reversal of the fair value hedges, $46 million of foreign currency losses arising on translation of the previously
designated debt, was no longer offset by foreign currency gains arising on the hedged item for the year ended 30 June 2020
(30 June 2019: $5 million). In September 2019 the debt was subsequently re-designated in new hedge relationships in accordance
with the Group’s financial risk management policies.
Amounts transferred from the cash flow hedge reserve where the forecast transaction is no longer expected to occur
Group policy is to manage risk exposures on foreign currency risk arising in respect of forecast operating cash flows and price risk
arising in respect of forecast fuel transactions. As a result of Covid-19 there was a substantial decline in customer demand due to
border closures and domestic travel restrictions. The airline significantly reduced operating capacity with effect from March 2020,
affecting revenues, operating expenditure and fuel consumption. A significant number of fuel hedges were closed out and hedges
of both fuel price and of foreign currency operating revenue and expenditure transactions were de-designated. Where the forecast
hedged transaction was no longer expected to occur, the associated accumulated gains or losses were transferred from the cash
flow hedge reserve to profit or loss. A number of trades de-designated from hedge relationships remained open as at reporting date.
The change in the fair value of these trades from the date of de-designation to 30 June 2020 was recognised in earnings within ‘Fuel’
and was largely offset by the transfer of premiums from the costs of hedging reserve in respect of hedge relationships that had been
de-designated.
Foreign exchange gains on uncovered interest-bearing liabilities and lease liabilities
Group policy is to manage foreign currency exposures arising from foreign currency denominated liabilities. Due to a significant
decline in forecast foreign currency revenue as a result of Covid-19, the Group was required to de-designate revenue hedges
in March 2020 which resulted in certain foreign currency debt and lease obligations becoming unhedged. Foreign currency
translation gains/losses arising on these obligations are now recognised in the Statement of Financial Performance. Further details
are set out in Note 24.
Aircraft impairment
From March 2020, the Group reduced its network capacity by more than 95% as demand declined as a result of Covid-19 border
closures and international travel restrictions. Due to the severe impact that the pandemic had on global demand for international air
travel, the Boeing 777-200ER fleet was grounded for an indefinite period into the future. The aircraft and other associated assets
were assessed for impairment to determine the recoverable amount based on the fair value less costs to sell. Market values were
determined based on asset condition and estimates of market demand. Impairment provisions of $338 million were recognised
against the fleet for the year ended 30 June 2020 (30 June 2019: Nil). Further details are set out in Notes 10 and 11.

13
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR TO 30 JUNE 2020
AIR NEW ZEALAND GROUP
3. Other Significant Items (continued)
Reorganisation costs
Due to the unprecedented impact of Covid-19 on the airline a reorgansiation programme was undertaken to realign the cost base.
This resulted in a reduction in employee numbers from April 2020 by 4,000 (being approximately 30% of the total labour workforce).
In March 2019, Air New Zealand announced a two-year cost reduction programme. Prior to March 2020 reorganisation costs, comprising
of redundancy and other related costs, were recognised in relation to the programme. In addition, following the announcement in October
2019 of the withdrawal of services on the London-Los Angeles route, a provision for redundancy costs was recognised in respect of the
London based cabin crew, ground staff and sales staff.
Gain on sale of landing slots
The Group entered into an agreement to dispose of its London Heathrow slots following an announced withdrawal from the London-
Los Angeles route. Proceeds from the sale of $42 million were received in December 2019. A gain on sale of $21 million was recognised
for the year ended 30 June 2020. A further gain on sale of $21 million is expected to be recognised in November 2020 when the
remaining slots are formally registered and transferred.
4 . Ta x a t i o n
Current and deferred taxation are calculated on the basis of tax rates enacted or substantively enacted at reporting
date, and are recognised in the income statement except when the tax relates to items charged or credited to other
comprehensive income, in which case the tax is also recognised in other comprehensive income.
Deferred income taxation is recognised in respect of temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the financial statements.
Deferred income tax assets and unused tax losses are only recognised to the extent that it is probable that future
taxable amounts will be available against which to utilise those temporary differences and losses.
Judgements are required about the application of income tax legislation. These judgements and assumptions are subject
to risk and uncertainty. There is therefore a possibility that changes in circumstances will alter expectations, which may
impact the amount of current and deferred tax assets and liabilities recognised in the Statement of Financial Position and
the amount of other tax losses and temporary differences not yet recognised. In such circumstances, some or all of the
carrying amounts of recognised tax assets and liabilities may require adjustment, resulting in a corresponding credit or
charge to the Statement of Financial Performance.
2020
$M
2019
$M
Current taxation credit/(expense)
Current year
Adjustment for prior periods
57
-
(66)
1

Deferred taxation credit/(expense)
Origination of temporary differences
Unused tax losses
57
56
61
(65)
(41)
-
Total taxation credit/(expense) recognised in earnings 174(106)

Reconciliation of effective tax rate
Earnings before taxation (628) 382
Taxation at 28%
Adjustments
Non-deductible expenses
Non-taxable income
Equity settlements of long-term incentive obligations
Over/(under) provided in prior periods
Reinstatement of tax depreciation on buildings
Foreign tax paid
176
(8)
6
-
1
3
(4)
(107)
(3)
1
5
(1)
-
(1)
Taxation credit/(expense) 174(106)
The Group has $79 million of imputation credits as at 30 June 2020 (30 June 2019: $187 million).

14
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR TO AND AS AT 30 JUNE 2020
AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2020
4. Taxation (continued)
Deferred taxation
Deferred tax assets and liabilities are attributable to the following:
NON-
AIRCRAFT
ASSETS
$M
AIRCRAFT
RELATED
$M
PROVISIONS
AND
ACCRUALS
$M
FINANCIAL

INSTRUMENTS
$M
PENSION
OBLIGATIONS
$M
LT I P
OBLIGATIONS
$M
UNUSED
TA X LO S S E S
$M
TOTAL
$M
As at 1 July 2018
Application of IFRIC interpretation
15
-
325
(40)
(55)
-
24
-
(1)
-
-
-
-
-
308
(40)
Restated as at 1 July 2018
Amounts recognised in Other
Comprehensive Income
Amounts recognised in equity
Amounts recognised in earnings
15
-
-
(1)
285

-
-
51
(55)

-
-
(8)
24
(38)
-
-
(1)
(3)
-
1
-
-
(2)
(2)
-

-
-
-
268
(41)
(2)
41
As at 30 June 2019 14 336(63) (14) (3)(4)-266
Amounts recognised in Other
Comprehensive Income
Amounts recognised in equity
Amounts recognised in earnings
-
-
(7)
-
-
(47)
-
-
(3)
(37)
-
-
2
-
-
-
3
1
-
-
(61)
(35)
3
(117)
As at 30 June 2020 7289(66)(51)(1)-(61)117
Deferred tax assets and liabilities are offset on the face of the Statement of Financial Position where they relate to entities within the
same taxation authority.
5. Earnings Per Share
Basic earnings per share is calculated by dividing the profit attributable to shareholders of the company by the weighted
average number of ordinary shares on issue during the year, excluding shares held as treasury stock. Diluted earnings per
share assumes conversion of all dilutive potential ordinary shares in determining the denominator.
2020
$M
2019
$M
Earnings for the purpose of basic and diluted earnings per share:
Net (loss)/profit attributable to shareholders(454)

276

Weighted average number of shares (in millions of shares)
Weighted average number of Ordinary Shares for basic earnings per share
Effect of dilutive ordinary shares:
- Performance rights and share options
1,123
-
1,123
6
Weighted average number of Ordinary Shares for diluted earnings per share1,1231,129

Basic earnings per share
Diluted earnings per share
(40.4)
(40.4)
24.6
24.4

15
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR TO AND AS AT 30 JUNE 2020
AIR NEW ZEALAND GROUP
6. Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, demand deposits, current accounts in banks net of overdrafts and other
short-term highly liquid investments that are readily convertible to known amounts of cash and which are subject to an
insignificant risk of changes in value.
Cash flows are included in the Statement of Cash Flows net of Goods and Services Tax.
Cash and cash equivalents, as stated in the Statement of Cash Flows, are reconciled to the Bank and short-term deposits balance in
the Statement of Financial Position as follows:
2020
$M
2019
$M
Cash balances
Other short-term deposits and short-term bills
130
308
132
923
Total cash and cash equivalents 438 1,055

Reconciliation of Net (Loss)/Profit Attributable to Shareholders to Net Cash Flows from Operating Activities:
Net (loss)/profit attributable to shareholders
Plus/(less) non-cash items:
Depreciation and amortisation
Loss on disposal of property, plant and equipment, intangibles and assets held for resale
Impairment expense/(reversal) on property, plant and equipment, right of use assets and assets held
for resale
Share of earnings of associates
Movement on fuel derivatives
Foreign exchange losses on debt, no longer offset by foreign exchange gains on the hedged item
Foreign exchange gains on uncovered interest-bearing liabilities and lease liabilities
Amounts transferred from the cash flow hedge reserve where the forecast transaction is no longer
expected to occur
Foreign exchange losses
Other non-cash items
(454)
841
-

335
(39)
4
46
(67)

40
2
12
276
554
2
(4)
(37)
1
5
-
-
2
11

Net working capital movements:
Assets
Revenue in advance
Liabilities
720
67
(253)
(304)
810
19
65
92
(490) 176
Net cash flow from operating activities 230 986
7. Trade and Other Receivables
Trade and other receivables are recognised at cost less any provision for lifetime expected credit losses. Bad debts are
written-off when they are considered to have become uncollectable.
2020
$M
2019
$M
Current
Trade and other receivables
Prepayments

260
45

440
124
305564

Non-current
Other receivables
Prepayments
78
64
-
64
14264
Expected credit loss provisions of $7 million were recognised as at 30 June 2020 (30 June 2019: $2 million).