Air New Zealand Investor Update (Op Stats) – December 2020

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Contents
• December 2020 traffic highlights
• Operating statistics table
• Recent media releases


December 2020 highlights















Group traffic summary
2020
2019% *20212020% * +
Passengers carried (000)
8811,824(51.7%)4,0039,040(55.7%)
Revenue Passenger Kilometres(m)573
4,190(86.3%)2,67820,021(86.6%)
Available Seat Kilometres (m)913
4,922(81.5%)4,99123,741(79.0%)
Passenger Load Factor (%)
62.8%85.1%(22.3 pts)53.7%84.3%(30.6 pts)
Ye a r-to-da te RASK
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Group30.7% 30.5%
Short Haul25.5% 25.3%
Long Haul(27.2%)(27.6%)
DECEMBER
% change in reported RASK
(incl. FX)
% change in underlying RASK
(excl. FX)
FINANCIAL YTD
* % change is b ased on numb ers prior to rounding.
1 Reported RASK (unit passenger revenue per availab le seat kilometre) is inclusive of foreign currency impact, and underlying RASK
excludes foreign currency impact.
Please note that the availab le seat kilometre (capacity) numb ers included in the tab les within this disclosure do not include any cargo-only
flights. This is b ecause these capacity numb ers are used to calculate passenger load factors and passenger RASK
29 January 2021

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Operating statistics table




GroupDECEMBERFINANCIAL YTD
20202019% *20212020% *
Passengers carried (000)8811,824(51.7%)4,0039,040(55.7%)
Revenue Passenger Kilometres(m)5734,190(86.3%)2,67820,021(86.6%)
Available Seat Kilometres (m)9134,922(81.5%)4,99123,741(79.0%)
Passenger Load Factor (%)62.8%85.1%(22.3 pts)53.7%84.3%(30.6 pts)
Short Haul TotalDECEMBERFINANCIAL YTD
20202019% *20212020% *
Passengers carried (000)8751,571(44.3%)3,9577,898(49.9%)
Revenue Passenger Kilometres(m)5101,704(70.1%)2,2308,825(74.7%)
Available Seat Kilometres (m)7062,048(65.5%)3,38310,599(68.1%)
Passenger Load Factor (%)72.2%83.2%(11.0 pts)65.9%83.3%(17.4 pts)
DomesticDECEMBERFINANCIAL YTD
20202019% *20212020% *
Passengers carried (000)8471,164(27.3%)3,8685,787(33.2%)
Revenue Passenger Kilometres(m)
446613(27.2%)2,0322,973(31.7%)
Available Seat Kilometres (m)547715(23.5%)2,6583,506(24.2%)
Passenger Load Factor (%)81.5%85.7%(4.2 pts)76.4%84.8%(8.4 pts)
Tasman / PacificDECEMBERFINANCIAL YTD
20202019% *20212020% *
Passengers carried (000)28407(93.1%)892,111(95.8%)
Revenue Passenger Kilometres(m)641,091(94.2%)1985,852(96.6%)
Available Seat Kilometres (m)1591,333(88.1%)7257,093(89.8%)
Passenger Load Factor (%)40.2%81.8%(41.6 pts)27.4%82.5%(55.1 pts)
Long Haul TotalDECEMBERFINANCIAL YTD
20202019% *20212020% *
Passengers carried (000)6253(97.5%)461,142(96.0%)
Revenue Passenger Kilometres(m)632,486(97.5%)44811,196(96.0%)
Available Seat Kilometres (m)2072,874(92.8%)1,60813,142(87.8%)
Passenger Load Factor (%)30.4%86.5%(56.1 pts)27.8%85.2%(57.4 pts)
Asia / Japan / Singapore DECEMBERFINANCIAL YTD
20202019% *20212020% *
Passengers carried (000)3118(97.6%)23508(95.5%)
Revenue Passenger Kilometres(m)261,055(97.5%)2124,508(95.3%)
Available Seat Kilometres (m)1491,220(87.8%)8635,345(83.9%)
Passenger Load Factor (%)17.6%86.5%(68.9 pts)24.6%84.3%(59.7 pts)
Americas / UKDECEMBERFINANCIAL YTD
20202019% *20212020% *
Passengers carried (000)3135(97.4%)23634(96.4%)
Revenue Passenger Kilometres(m)371,431(97.4%)2366,688(96.5%)
Available Seat Kilometres (m)581,654(96.5%)7457,797(90.4%)
Passenger Load Factor (%)63.6%86.5%(22.9 pts)31.6%85.8%(54.2 pts)
* % change is based on numbers prior to rounding
Air New Zealand operates primarily in one segment, its primary business being the transportation of passengers and cargo on an integrated
network of scheduled airline services to, from and within New Zealand. The following operational data and statistics is additional supplementary
information only.

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Media Releases
(during the period 23 December 2020 to 28 January 2021)

Air New Zealand backs Government’s biofuels mandate 28 January 2021

Air New Zealand backs the New Zealand Government’s in principle decision to implement a biofuels mandate
that will help the country to reduce carbon emissions in the transport sector.

At the announcement with Prime Minister Jacinda Ardern, Minister for Climate Change James Shaw and
Transport Minister Michael Wood, Air New Zealand Chief Executive Officer Greg Foran said pursuing biofuels
is a necessary step in reaching New Zealand’s shared net zero by 2050 goal.

“COVID-19 has had a huge impact on our airline, but it has not slowed our commitment to decarbonising our
business. We see this announcement as a major step forward for the wider transport sector, and we’re
supportive of a national strategy for decarbonising the economy, accompanied by appropriate policy settings
and investment.

“It’s great news for New Zealand and great news for the future of travel and our key export industries which
rely on low carbon air transport. We flew the world's first commercial aviation test flight powered by a
sustainable second-generation biofuel in 2008, and this announcement brings us a step closer to making
commercial flights powered by Sustainable Aviation Fuels a reality.

“While we see hydrogen-powered or electric aircraft as viable options for our domestic and short haul network,
being able to access Sustainable Aviation Fuels at a competitive price will be very important for us when it
comes to decarbonising our long haul operations.”

The airline has been part of the Sustainable Aviation Fuel Consortium for the past five years in partnership
with Z Energy and others. The consortium was formed to develop a roadmap for sustainable aviation fuel to
become the norm for air travel in New Zealand.


Air New Zealand requires face masks on all flights 25 January 2021

Air New Zealand now requires the use of face masks on all international flights to and from New Zealand as
a result of updated overseas government border requirements and as a further proactive safety measure to
prevent the spread of COVID-19.

Air New Zealand Chief Operational Integrity and Safety Officer David Morgan says the airline continues to
proactively review operational processes to keep its customers, employees and New Zealand safe.

“As COVID-19 cases around the world continue to rise, particularly with new variant strains, we’ve put this
requirement in place to further ensure the safety of our customers, aircrew and broader New Zealand.

Our customers are already required by law to wear masks inflight to a number of our destinations, so
extending this mandate to the remainder of our network provides a further safeguard against any potential
spread of the virus. To date our customers have been overwhelmingly supportive of the requirement to wear
masks and we thank them for their ongoing cooperation.”

Air New Zealand continues to work with the New Zealand Government on border requirements, such as pre-
departure testing announced last week. For the latest information, customers can check the Air New Zealand
COVID-19 Hub or the New Zealand Government website
.

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Air New Zealand updates international schedule to end of June 19 January 2021

Air New Zealand is extending its COVID-19 international schedule through to 30 June 2021 in response to
ongoing travel restrictions and low passenger demand. The schedule aims to keep air links open for essential
travel and cargo movement on key trade routes.

Air New Zealand’s General Manager Networks Scott Carr says the airline has been progressively updating
its schedule over the past 12 months in response to the global pandemic.

“Our schedule is driven by a number of factors including airport takeoff and landing slots which generally
operate on a ‘use it or lose it’ basis. This means if you don’t fly the majority of your schedule you may lose
access to airports. We have been waiting to receive slot alleviation for the April to end of June period, which
means our regular slot times are protected even if we can’t fly them all. As this is now progressing, we are
now able to move ahead with adapting our schedule through to 30 June to better reflect the low demand
environment we are currently operating in.

“We understand these are very uncertain times and it can be tricky for people looking to get home with a lot
of things needing to line up including flights, testing and managed isolation bookings. We feel a responsibility
to ensure Kiwis can come home and are doing our best to make this happen as smoothly as possible. We
strongly recommend customers check government border restrictions for the relevant countries and/or
individual passport requirements before booking a ticket.”

The airline’s customer service team is supporting those affected by these changes. Customers booked via a
travel agent, including a third-party website (e.g. Expedia, Booking.com) should speak with their agent. Air
New Zealand’s dedicated COVID-19 information hub
is being updated continuously and customers should
check this first, before calling the airline’s contact centre.

The updated schedule from 28 March 2021 to 30 June 2021 is below. There is no change to trans-Tasman
services at this stage. All services are subject to change in line with global travel and border restrictions.

Pacific services Frequency
Auckland-Nadi One return service per week
Auckland-Niue One return service per week
Auckland-Rarotonga Daily return service
Auckland-Samoa One return service per week
Auckland-Tonga One return service per week
Sydney-Norfolk Island Three return services per week
Brisbane-Norfolk Island Three return services per week

Long haul services Frequency
Auckland-Los Angeles Two return services per week
Auckland-Hong Kong Two return services per week
Auckland-Shanghai Two return services per week
Auckland-Tokyo One return service per week
Auckland-Seoul One return service per month

Click here
or on the image below to hear General Manager Networks Scott Carr talking more about the
schedule through to 30 June.


Air New Zealand supports ESR to get smart with saliva 18 January 2021

Air New Zealand is teaming up with the Institute of Environmental Science and Research (ESR) to look at the
effectiveness of saliva testing in detecting COVID-19.

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From late January, Air New Zealand employees who are currently undertaking regular surveillance testing
under the Ministry of Health testing order will be invited to participate in the study.

The purpose of this study is to see if a saliva sample is an accurate, easy and acceptable method of detecting
COVID-19 compared to the current nasopharyngeal swab test. The study has recently been given the go
ahead by the Ministry of Health National Health and Disability Ethics Committee.

Air New Zealand Chief Medical Officer Dr Ben Johnston says the airline is keen to investigate how to make
the testing process as simple, easy and comfortable as possible for its crew, pilots and airport staff who are
tested on a regular basis.

“It’s great to team up with ESR on this trial to see if a faster and more non-invasive option is available as it’s
likely surveillance testing for COVID-19 will be required for some time into the future.

“This study will bring us one step closer to looking at the effectiveness of saliva testing, which would greatly
improve the experience for our people who are committed to keeping New Zealanders safe.”

ESR Chief Scientist Dr Brett Cowan says Air New Zealand is an ideal partner to test the science of saliva
testing.

“Air New Zealand is joining us on this scientific exploration for the benefit of all New Zealanders, so that we
may unpack how this tool can or can’t be used in our unique situation and context. This study will go a long
way to determining if saliva testing can be added to New Zealand’s toolbox as we look to strengthen our
defense against COVID-19.”

The study will run over two to three months and will take place alongside the existing nasopharyngeal swab.
ESR will compare the accuracy of both the saliva and regular nasopharyngeal in their laboratories.


Air New Zealand says ‘aere mai’ to Rarotonga 15 January 2021

Air New Zealand is delighted to offer services from Rarotonga to New Zealand after the recent
announcement of a one-way quarantine-free travel route. This is the first step of the phased approach to
two-way quarantine-free travel between the two nations.

Flights from the Cook Islands to New Zealand are on sale now
and Air New Zealand the first flight into
Auckland will be on 21 January at 10:50am.

Air New Zealand will operate two flights per week, departing Rarotonga on Wednesdays and Saturdays
using the airline’s A320 fleet.
Air New Zealand Chief Executive Officer Greg Foran says the airline is proud to be bringing our Rarotongan
neighbours to New Zealand and making headway with two-way safe quarantine-free travel.

“This is fantastic news for both Cook Islanders and New Zealanders. We know many Cook Islanders will be
eager to connect with friends and family in New Zealand, and we look forward to seeing what a two-way
quarantine-free travel arrangement will look like.”

“Of course safety is our first priority for our customers and staff. We’ve been working closely with both
governments, relevant agencies and airports on what is required to keep our customers and staff safe once
travel opens up.”
Health checks for quarantine-free travel from Cook Islands to New Zealand will occur both at Rarotonga
International Airport and in Auckland Airport on arrival.

Customers travelling from Rarotonga to New Zealand will be required to wear masks inflight and will arrive
at Auckland Airport into a designated area separated from passengers arriving on quarantine flights.

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Air New Zealand to begin quarantine-free flights to Brisbane 6 January 2021

Air New Zealand will operate its first quarantine-free flight from Auckland to Brisbane tomorrow.

Passengers travelling on this flight will not be required to quarantine on arrival in Brisbane. Before
customers travel to Australia they are required to complete the Australia Travel Declaration
form
stating they have been in New Zealand the preceding 14 days.

Air New Zealand Chief Customer and Sales Officer Leanne Geraghty says flight NZ147 will depart
Auckland at 7:40am with passengers on board not required to quarantine on arrival in Brisbane.

“Flights from Auckland to Brisbane will operate similarly to the flights we have been operating to
Sydney and Melbourne – with quarantine-free flights for people whose travel originates in New
Zealand, and quarantine flights for people who do not meet the Safe Travel Zone criteria and are
required to quarantine on arrival in Australia.

“Our teams have been working closely with authorities in Australia to ensure all agencies are
satisfied processes are in place to confidently accept quarantine-free flights, and we thank
customers for their patience while we’ve worked with various agencies in Australia to ensure we
can keep everyone safe.

“We currently operate five return flights per week between Auckland and Brisbane. Three of these
services will be quarantine-free flights, while the remaining two will be quarantine flights.
Quarantine flights are not able to be booked by people beginning their journey in New Zealand.”

Air New Zealand will directly contact customers if their booking is affected by these changes.
Customers who booked via a travel agent (including online travel agents) will be contacted by
their booking agent.

Passengers planning to travel interstate beyond Queensland will need to ensure they have
checked state and territory travel restrictions and have the appropriate exemptions/approvals to
travel as these continue to change. More information on the Safe Travel Zone can be found here.


This is a one-way arrangement and those returning to New Zealand will still need to quarantine for
14 days on return, provide payment for quarantine and register their managed isolation
accommodation requirements via the New Zealand Government’s
Managed Isolation and
Quarantine website.