Air NZ announces 2021 result as it navigates Covid-19

Media release
26 August 2021

Air New Zealand announces 2021 financial result as it
continues to navigate Covid-19 impacts

Financial results summary
• Operating revenue of $2.5 billion, down 48 percent on the prior year
• Cargo revenue up 71 percent on the prior year, supported by the New Zealand and Australian
Government’s IAFC, MIAC and IFAM schemes (the airfreight support schemes)
1

• Loss before other significant items and taxation of $440 million
2

• Loss before taxation of $411 million
• Domestic capacity rebounded strongly as the year progressed, reaching 93 percent of pre-Covid for
the three months ending July, driven by strong leisure demand and the return of corporate customers
• Latest domestic nationwide lockdown expected to negatively impact financial operating performance
• Liquidity of $1.3 billion as at 24 August 2021, comprised of $183 million cash and $1.15 billion of
undrawn funds on the Government standby loan facility (the Facility)
• Dividends remain suspended
• Planned capital raise deferred to first quarter of calendar year 2022

Air New Zealand has announced a loss before other significant items and taxation of $440 million for the 2021
financial year – its first full 12-month period of operation with Covid-19 related international travel restrictions.
Using the same metric, the company reported an $87 million loss for the 2020 financial year.

Statutory losses before taxation, which include a $29 million gain from other significant items, were $411
million, compared to a loss of $628 million last year.

The financial result benefited from approximately $450 million of Government assistance including airfreight
support schemes as well as further subsidies and initiatives that are not expected to be repeated to the same
extent in the 2022 financial year.

Ongoing border restrictions saw operating revenue decline 48 percent to $2.5 billion as international flying was
significantly reduced, with capacity down 55 percent on the prior year, although cargo flying revenue grew by
71 percent compared to the prior year thanks to airfreight support schemes. The airline’s domestic business
performed strongly, led by strong leisure demand as well as corporate customers flying at close to pre-Covid
levels.

Chairman Dame Therese Walsh says the 2021 financial result reflected the reality of a year in which the airline
was unable to fly two-thirds of its passenger network.

“In a severely constrained environment, Air New Zealand maintained cost discipline, focusing on delivering
with excellence in the areas in its control. The return of a strong domestic business and growth in the cargo
services that underpin our key export markets was a reminder of the airline’s crucial role in New Zealand’s
infrastructure,” says Dame Therese.

“Air New Zealanders showed agility during constantly changing operating conditions, managing reopenings,
pauses and then closures while generating new revenue from additional cargo routes and increasing domestic
and regional passenger capacity to match an increased demand for domestic leisure travel.”

1
In March 2020 the New Zealand Government established the International Airfreight Capacity (IAFC) scheme to support aviation carries to continue to provide capacity on key international
airfreight routes. Following the success of this scheme, the Government introduced the Maintaining International Air Connectivity (MIAC) scheme to support air services through to the end of
October 2021, with the potential for an extension to March 2022. The Australian Government introduced the International Freight Assistance Mechanism (IFAM) in April 2020 to keep global
airlinks open to Australia and awarded the contract to Air New Zealand in August 2020. It has subsequently been extended to September 2021.
2
Losses 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. Losses before other significant items and taxation is reported within the Group’s audited
annual financial statements. A summary of Other Significant Items is provided at the end of this release
.

Dame Therese paid tribute to the continued commitment and sacrifice of the Air New Zealand team.

“To keep New Zealand connected to key markets, help Kiwis continue travelling and manage continued
disruption to passengers’ travel plans, Air New Zealanders have again proven their aroha for customers. From
our airport employees and flight crew who are among the most frequently tested groups in the country, to all
our other operations and corporate teams across the network who have worked tirelessly behind the scenes
to keep our customers and cargo moving, their efforts have been extraordinary.”


“These efforts, after 18 months of reduced pay and forfeited incentives, were recognised earlier this year when
we announced eligible employees would each be provided with a $1,000 award of shares or cash. With
significant uncertainty ahead, including the current lockdown, this was important recognition of the people who
give so much to our business.”

Chief Executive Officer Greg Foran said the 2021 financial year was one in which the airline played the hand
it was dealt, kept planes flying every day and took some important steps in the delivery of its refreshed strategy,
Kia Mau.

“Our people developed new capabilities and dexterity, adapting quickly when conditions changed. Although
the return of long-haul travel seems some time away, the changes the team made this year will serve us well
when it returns,” he says.

“We have reimagined our domestic business, increasing the choice of flight times and introducing greater price
differentiation for peak and off-peak flying. This allows us to offer more lower priced fares, which will unlock
new demand for domestic tourism.”

“We capped fares to ensure travel isn’t out of reach when it’s needed most, reintroduced the popular Fast Bag
service with new features, and improved our unaccompanied minors service to make travel easier for our most
valuable cargo and safer for our people.”

“We had fun with our customers, trialing new inflight food and beverage options, made changes – while
retaining the much-loved cookie – and will showcase great New Zealand products in the year ahead.”

Mr Foran says the airline also took meaningful steps towards its goal of net zero emissions by 2050.

“With almost daily reminders of the impact of climate change, we are supporting the development and
deployment of electric, hybrid and hydrogen aircraft for domestic use, and engaging and collaborating with
others in the private sector and the Government to make sustainable aviation fuel (SAF) supply a reality in
New Zealand.”

“We also made some exciting enhancements to our Airpoints
TM
loyalty programme, adding more store partners,
improving access to upgrades and increasing the ability to share benefits among family and friends.”

“Strategic digital investments towards our goal of being ‘the world’s leading digital airline’ included equipping
our turboprop aircrew with devices to replace paper-based systems, introducing a new supply chain
management system and improving self-serve options for customers to use credits and manage bookings.”

Mr Foran also acknowledged the ongoing uncertainty in the airline’s operational and financial performance,
including following the latest Covid-19 cases in New Zealand and subsequent lockdown.

“More than ever, this is a time to look after our people who continue to deliver those essential services, keeping
cargo moving and getting Kiwis back home.”

Capital raise and liquidity
As announced on 13 August 2021, Air New Zealand received a letter from the Minister of Finance outlining his
view that the current environment is not sufficiently certain and stable to enable the Crown to provide a firm
pre-commitment to support a planned equity raise at this time.
In this context, the airline has, in consultation
with the Crown, decided to further defer its planned capital raise from 30 September 2021 until the first available
window in the first quarter of calendar year 2022.

Given the critical role that the airline has in New Zealand’s economy and society, the Crown has again
confirmed its longstanding commitment to maintaining a majority shareholding in Air New Zealand. Subject to

Cabinet being satisfied with the terms of the airline’s proposed capital raise at the relevant time, the Crown has
again confirmed that it will participate in an equity capital raise by purchasing the number of new shares
necessary to maintain a majority shareholding.

On completion of the recapitalisation, Air New Zealand expects to repay all amounts drawn under the Facility.
The Crown has confirmed to the airline that it shares this expectation.

Until the capital raise is completed, the airline has access to sufficient liquidity under the Facility, with $1.15
billion in remaining funds that allow it to continue operating and investing activities. Air New Zealand has drawn
$350 million on the Facility as at 25 August 2021 and expects to draw down further in the coming months.

The airline’s operating cashflow for the 2021 financial year benefited from the one-off deferral of around $254
million in Fringe Benefit Tax (FBT) and PAYE payments, which will start to be repaid in the 2022 calendar year.
An additional $60 million of FBT and PAYE is expected to be deferred in the first quarter of the 2022 financial
year and repaid before 31 March 2022.


Dividend update
The Board continues to focus on preserving Air New Zealand’s liquidity, and given the ongoing uncertainty and
continuing financial pressures on the airline, has determined it will not declare a final dividend for the 2021
financial year.

Air New Zealand’s Board does not expect to consider payment of dividends before the airline’s earnings and
gearing substantially recover, and in the context of a supportive macroeconomic environment.

Outlook for 2022
Given uncertainty surrounding the current national lockdown, ongoing international travel restrictions and
uncertainty regarding the level of demand as these restrictions lift, Air New Zealand has suspended 2022
earnings guidance.



Summary financial results




Jun 2021
$M
Jun 2020
$M
Movement
%
Operating revenue 2,517 4,836 (48.0%)
Loss before other
significant items and
taxation
(440) (87) (405.7%)
Other significant items 29 (541) 105.4%
Loss before taxation (411) (628) 34.6%
Net loss after taxation (289) (454) 36.3%
Operating cash flow 323 230 40.4%
Gearing 71.0% 69.2% (1.8 pts)

Other significant items
Other significant items, representing a gain of $29 million in the 2021 financial year, were made up of $143
million of foreign exchange gains on uncovered debt and a gain of $21 million related to the sale of Heathrow
landing slots partially offset by aircraft impairment and lease modification costs of $78 million, reorganisation
costs of $39 million and the de-designation of hedges as a result of forecast transactions no longer expected
to occur of $18 million.


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

---

AIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULT

AIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULT
2
This presentation is given on behalf of Air New Zealand Limited (NZX: AIR and AIR020; ASX: AIZ). The information in this presentation:
•Is provided for general purposes only and is not an offer or invitation for subscription, purchase, or a recommendation of securities in Air New Zealand
•Should be read in conjunction with, and is subject to, Air New Zealand’s audited annual financial statements for the year ended 30 June 2021, prior annual and
interim reports and Air New Zealand’s market releases on the NZX and ASX
•Is current at the date of this presentation, unless otherwise stated. Air New Zealand is not under any obligation to update thispresentation after its release,
whether as a result of new information, future events or otherwise
•May contain information from third parties. No representations or warranties are made as to the accuracy or completeness of suchinformation
•Refers to the financial year ended 30 June unless otherwise stated
•Contains forward-looking statements 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. These statements are susceptible to uncertainty and changes in circumstances. This is particularly the case as a resultof the ongoing impacts of the
Covid-19 pandemic and the New Zealand Government's actions in response to the pandemic. Air New Zealand’s actual future results may vary materially from
those expressed or implied in its forward-looking statements and undue reliance should not be placed on any forward-looking statements
•Contains statements relating to past performance which are provided for illustrative purposes only and should not be relied uponas a reliable indicator of future
performance
•Is expressed in New Zealand dollars unless otherwise stated and figures, including percentage movements, are subject to rounding
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. Nothing in this presentation constitutes financial, legal, regulatory, tax or other advice.
Non-GAAP financial information
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 Five-Year Statistical Review contained in the 2021 Annual Financial Results. Thenon-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.
Refer to slide 37 for a glossary of the key terms used in this presentation.
Forward-looking statements and disclaimer

AIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULT
Business Update
Greg Foran Chief Executive Officer
3

AIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULT
4
Business Update
• Reporting a loss before other significant items and taxation of $440 million, statutory
loss before taxation of $411 millionand a statutory loss after taxation of $289 million
• Reflectedstrong, resilient demand for domestic travel, averaged 93% of pre-Covid
levels over the past three months, underpinning our operational schedule; bolstered by the
return of corporate demand in recent months
−The current New Zealand lockdown expected to adversely impact this demand over the coming
months, but too early to assess
•Cargo revenue up 71% driven by ~50 flights per week under the MIAC
1
scheme
• Opening of travel bubbles in 2H2021 provided positive momentum, with new bookings
driving improved operating cash flow; recent outbreaks across parts of Australia have
interrupted the recovery
• Short-term liquidity of ~$1.3 billion as at24 August 2021, including $1.15 billion of undrawn
funds on the Crown Standby Loan Facility
• Planned capital raise deferred to first quarter of calendar year 2022; the New Zealand
Government has again confirmed its intention to participate subject to Cabinet approval
1
MIAC refers to the Government's Maintaining International Air Connectivity scheme, which supports the cost of flying for all airlines awardedfl ights under the scheme.
The airline flies ~50 flights per week to 16 ports with the trans-Tasman bubble suspended, and ~30 flights per week to 12 ports when the trans-Tasman bubble is open.
Moving towards revive mode despite continued Covid-19 disruption;
Domestic and Cargo continue to be the backbone of our recovery
2021 Overview

AIR NEW ZEALAND 2021ANNUAL RESULT
5
• Domestic capacity had reached ~93% of pre-Covid levels,
with domestic leisure travel reaching ~130%
1
−Prior to latest nationwide lockdown, Domestic performance had
been resilient, highlighting our strength as crucial transport
infrastructure in New Zealand
• Corporate demand showed good signs of recovery
– More than 90% of pre-Covid levels since April 2021
• Focus on further enhancing our Domestic proposition
– Following removal of current domestic travel restrictions,
expecting to add additional seats to generate increased demand
across the network
– Includes relaunching new domestic schedule to give customers
more choice on timing and price
Domestic demand was driven by strong leisure travel and good recovery of corporate demand
Domestic network performance was resilient in 2021
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
Domestic CorporateDomestic Online + LeisureInternational connecting or sold offshore
Domestic passenger bookings per day
1
As at the three months ended July 2021.

AIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULT
6
Despite the strong Domestic performance, passenger revenue for 2021 was only ~30% of pre-
Covid levels due to ongoing border restrictions and limited international long-haul flying
2021 represents the first full-year impact of Covid-19
2019 passenger revenue segmentation
1
2021 passenger revenue segmentation
1
27%
41%
32%
$5.0bn
passenger
revenue
10%
9%
81%
$1.5bn
passenger
revenue
1
Passenger revenue for each segment divided by total passenger revenue.
Domestic
Tasman / Pacific Islands
International long-haul
Passenger numbers
20192021
Domestic11.5M8.2M
Tasman / Pacific Islands4.0M386K
International long-haul2.2M72K

AIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULT
• Essential service supporting New Zealand’s global trade links
• Cargo revenue of $769 million increased 71% including FX
• Growth primarily due to the extension of Government supported
flights, contributing $333 million to cargo revenue in 2021
–Maintaining International Air Connectivity (MIAC) scheme
announced in March 2021, following the success of the International
Airfreight Capacity (IAFC) scheme
–Current phase of the scheme awarded in April 2021, providing
further supported flights until October 2021
o~50 flights per week to 16 ports with the trans-Tasman bubble suspended,
and ~30 flights per week to 12 ports when the trans-Tasman is open
oDoes not include flights to Australia or Rarotonga when travel bubble is in
operation
–International Freight Assistance Mechanism (IFAM) contract
awarded in August 2020 by Australian Government – extended to
September 2021
Cargo performance, supported by New Zealand and Australian cargo schemes, continues to
provide a vital service to New Zealand exporters and import crucial goods
Cargo Overview
7

AIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULT
Ensuring pilots, cabin crew
and airport teams are trained
and ready to be brought back
in line with demand
People
Ensuring fleet and airport
infrastructure is serviced and
equipped for action
Infrastructure
Prepared to deploy capacity
with well planned and
optimised new international
network schedules and routes
Network planning
Continually monitoring
Government travel guidance
locally and internationally and
engaging with relevant
stakeholders on border
requirements
Government engagement
Proven operational agility to support our customers with changing travel requirements, while
maintaining structural cost reductions made across our business
The airline is operationally ready
8

AIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULT
1
Colmar Brunton 2021 Corporate ReputationIndex.
Unparalleled brand and service culture
Celebrating more than 80 years of service, ranking
#1 for corporate reputation in New Zealand for the
past seven consecutive years
1
New Zealand’s leading domestic carrier,
maintaining significant domestic passenger
market share over the past 10 years
Domestic network strength
Modern, fuel-efficient fleet expected to drive
improved operating cost outcomes
Modern, fuel-efficient fleet
Air New Zealand is a world-class airline, with a strong customer proposition and modern fleet
underpinned by digital innovation, driving improvements in customer experience and profitability
through its refreshed strategy, Kia Mau
Strategy expected to support a return to profitable
international operations once demand returns
Focused international strategy
Scalable Airpoints
TM
loyalty programme
Provides a scalable, asset-light source of cash
flows while driving customer engagement and
retention
Key investment highlights
Committed to taking actionon decarbonisation,
reducing waste and plastic, and championing
sustainable tourism
Serious about sustainability
9

AIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULT
FINANCIAL RESULTS
Richard ThomsonChief Financial Officer
10

AIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULT
• Operating revenue $2.5 billion, down 48%
• Loss before other significant items and taxation
1
$440 million
• Loss before taxation $411 million
• Net loss after taxation $289 million
• Short-term cash of $266 million
2
• Gearing at 71.0%
• Dividend suspended until further notice
1
Refer to slide 16 for further details on Other Significant Items of $29 million.
2
As at 30 June 2021, not including remaining undrawn funds from the Crown Standby Loan Facility.
Please refer to slide 4 for details on liquidity as at 24 August 2021.
2021 financial summary
Covid-19 impact
2020 financial year
reflects pre-Covid
performance through
February 2020 with
substantial adverse
impact from the
pandemic commencing
in March 2020
Earnings/Loss before other significant items and taxation
($ millions)
11

AIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULT
Additional commentary
•Labour cost decreased 31% due to
reduced international flying, lower
headcount and reductions in
discretionary spend
•Aircraft operations, maintenance and
passenger services costs decreased
46% reflecting fewer departures and
the resulting reduction in landing,
meal and lounge costs as well as
reduced maintenance activity
required on our own fleet due to less
flying and third-party work
•Ownership costs decreased 12% due
to reduced depreciation on impaired
Boeing 777s and reduced utilisation
of capitalised engine maintenance
partially offset by increased funding
costs and new aircraft deliveries
•Several one-off tailwinds including
Government wage subsidies and
other aviation support measures
provided significant cost benefits in
2021, although are not expected to
repeat in 2022 (refer to next slide)
1
For further details on fuel cost movement, refer to slide 34.
12
Profitability waterfall

AIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULT
Impact to the Profit & Loss
Support programmeAmount ($m)P&L line item
Airfreight schemes333Cargo revenue
1
Wage subsidies56Labour cost
1
Air navigation subsidies40Aircraft operations
Passenger levy relief18Passenger services
Biosecurity border processing levy1Other expenses
1
These are ongoing benefits that are expected to continue into the 2022 financial year, albeit to a lesser extent than 2021 levels.
A series of government support programmes contributed to the 2021 result, although are not
expected to repeat at a similar level in the 2022 financial year
2021 result reflects benefit of support programmes
13

AIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULT
67
32
1H 20201H 2021
(~50%)
1H average weekly operating costs (ex fuel)
($ millions)
2H average weekly operating costs (ex fuel)
($ millions)
vs.
capacity
decline of
~65%
49
40
2H 20202H 2021
(~20%)
vs.
capacity
decline of
~38%
Operating costs in 2H 2021 reflect continued cost discipline, partially offset by lower levels of
subsidy support and costs associated with the travel bubbles to Australia and the Cook Islands
Continued cost discipline
14

AIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULT
2H 2021 cash burn benefited from operating cash flows related to the trans-Tasman and Cook
Islands travel bubbles, reduced levels of refunds and redundancies as well as other cost deferrals
Cash burn
1
overview
9
2H 20211H 2021
(96)
Average monthly cash burn
($ millions)
Improvement in 2H 2021 average cash burn compared to 1H 2021
driven by:
• Continued strong performance of Domestic and Cargo
• Commencement of travel bubbles with Australia and the Cook Islands
• Reduced level of refunds and redundancies compared to the 1H
• Fuel hedging gains compared to losses in 1H
• Further negotiations related to aircraft delivery deferrals
1H 2022 cash burn expected to face headwinds driving higher cash
burn than 2H 2021, including:
• Reduced bookings related to the suspension of the trans-Tasman travel bubble and
the recent domestic lockdown
• Commencement of regular PAYE and FBT payments of ~$20 million per month from
October 2021
• Delivery of aircraft that had been previously deferred
1
Cash burn is defined as the aggregate of operating, investing and financing cashflow prior to drawings under the Crown Standby Loan Facility, over a specified period of time.
15
Benefit of
PAYE and
FBT deferrals
in 2021:
$254
million

AIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULT
Other Significant Items impact for the 2021 Financial Year
FX gains on uncovered foreign
currency debt
$143 millionNon-cash
Gain on sale from landing slots$21 million
2
Non-cash
FX amounts transferred from the cash flow
hedge reserve where the forecast
transaction is no longer expected to occur
($18 million)Non-cash
Reorganisation costs($39 million)
3
Partial non-cash
Aircraft impairment and lease
modifications
($78 million)Non-cash
Total Other Significant Items$29 million
Non-cash
$55 million
Cash
($26 million)
4
1
Please refer to slide 28 for more information.
2
Gain on sale related to the sale of Heathrow landing slots (arising from the exit of the London-Los Angeles route); The gain on sale was recognised
upon formal transfer of each of the slots to the purchaser with $42 million in proceeds received in December 2019.
3
Total redundancies paid in 2021 financial year were $118 million.
4
Refers to cash paid in the 2021 financial year.
Other significant items of $29 million were recognised in 2021
1
Other significant items
16

AIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULT
• Continueto hedge our expected fuel exposure, with
~60% of 2022 volumes hedged
−Hedging in 2021 was focused on Domestic and Cargo
flying volumes only
−Similar approach being taken for 2022 financial year to
ensure hedge effectiveness
• As previously disclosed, the Board has granted
temporary exemption to certain aspects of the airline’s
Treasury Policy
–Exemptions relate primarily to required hedging levels
while Covid-19 drives uncertainty
Fuel hedge position
(as at 17 August 2021)
Period
Hedged
volume
(in barrels)
Hedges
as % of
estimated
volumes
Net
compensation
from hedging
1
1H 2022~1.6 million~80%~$22 million
2H 2022
~900
thousand
~40%~$5 million
1
Net compensation from fuel hedges represents the unrealised gains and losses on fuel hedges.
Air New Zealand’s fuel hedging policy and approach remains unchanged
Hedging update
17

AIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULT
0
200
400
600
800
1,000
20152016201720182019202020212022202320242025202620272028
$ millions
Fleet investment update
Degree of flexibility maintained over aircraft and non-aircraft capital expenditure; aircraft
capital expenditure expected to reduce materially once contracted Boeing 787s order received
Actual and committed aircraft capital expenditure
1
1
Includes progress payments on aircraft and aircraft improvements (e.g. refurbishment); excludes assumed
interiors retrofit capital expenditure for the existing 14 Boeing 787 fleet.
HistoricalCommitted
1
• Contracted Boeing 787 order initially intended to replace the
Boeing 777-200 fleet but will now replace the Boeing 777-300
fleet, given permanent retirement of 8 Boeing 777-200 aircraft
in 2020
• Committed aircraft capital expenditure profile reflects deferral
of two Boeing 787 from 2023 to 2024 and 2024 to 2026, and
assumes all contractual slide rights are executed
• Committed aircraft capital expenditure profile also reflects
deferral of two A321neo domestic aircraft from 2024 to 2027
• No committed aircraft capital expenditure currently beyond
2028
−Given the young age of fleet compared to global peers,
Management has the optionality to allow fleet age to grow
• Interiors retrofit programme for existing 14 Boeing 787 fleet is
anticipated beyond 2023, but timing and quantum have not
been confirmed
18

AIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULT
Fleet simplification strategy
Air New Zealand has simplified its fleet and continues to focus on this strategy to drive superior
operating cost and capital expenditure outcomes
Wide
-body
Narrow
-body
Turboprop
2021 (5 aircraft types)
2027 (4 aircraft types)
1
787
(20)
A320
(33)
ATR72
(29)
Q300
(23)
777-300
787-9
787-10
A320
A321
787
(14)
777
(7)
787-9
A320
(31)
A320
A321
ATR72
(28)
Q300
(23)
ATR72-600
ATR72-600
2011 (8 aircraft types)
747
(5)
767
(5)
777
(11)
A320
(14)
737
(15)
ATR72
(11)
Q300
(23)
B1900D
(18)
777-300
777-200
1
Note – represents the fleet at the end of the 2027 financial year.
ATR72-500
19

AIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULT
OUTLOOK
Greg Foran Chief Executive Officer
20

AIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULT
•Ensure wellbeing of our people
•Continued customer obsession, with new and enhanced
product offerings
•Retain cost discipline
•Enhance Domestic proposition to drive further demand
•Support recovery of the economy via cargo
•Complete capital raise in early 2022 calendar year
•Continue to advocate for action ondecarbonisation and
implement changes in the business to support targets
Short-term
Medium-term
•Build back a network of profitable international flying
•Preserve and protect competitive advantages
•Leverage strong domestic brand presence and customer
loyalty to stimulate travel on Tasman and Pacific
Islandroutes
•Prioritiseour peopleand our customers
•Invest in digital solutions to put greater control and
flexibility in the customers hands
•Ancillary revenue opportunities
•Achieve sustainable level of earnings through the cycle
•More efficient airline, focused on optimal network
•Enhance the customer travel experience through
innovations across our digital infrastructure
•Invest in cargo to better serve customersand support
long-haul international flying
•Right-sized cost base
•Continue to pursue sustainable aviation fuel (SAF)and
zero emissions aircraft technologies to meet our
decarbonisation targets
•Expand and leverage loyalty programme
Long-term
Air New Zealand is actively shaping its business to prepare for when international demand returns
Positioning for recovery
21

AIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULT
2022 Outlook
Given uncertainty surrounding the current national lockdown,
ongoing international travel restrictions and uncertainty regarding
the level of demand as these restrictions lift, Air New Zealand has
suspended 2022 earnings guidance
22

AIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULT
THANK YOU
23

AIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULT
SUPPLEMENTARY
INFORMATION
24

AIR NEW ZEALAND 2021ANNUAL RESULT
1
Informationasat 30June2021unlessotherwisestated.
2
Informationfor12monthsending30June2019.
3
ColmarBruntonCorporateReputationIndex2021.
4
Asat 26August2021.
Air New Zealand at a glance
1
82
Years in operation
Pacific Rim
Focused international network
20
Domestic destinations
18 million
Passengers carried
annually
2
3.6 million
Airpoints
TM
loyalty scheme members
#1
Corporate reputation
in New Zealand for seven
consecutive years
3
Baa2 (stable)
Investment grade credit rating from
Moody’s since 2016
4
16
Years of consecutive profitability
before 2020
6.7 years
Average fleet age on a seat
weighted basis
25

AIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULT
Australia
51%
China
119%
USA
89%
France
83%
UK
57%
Germany
26%
% represents number of domestic seats flown in July 2021 as a % of July 2019 levels.
Airlines with strong domestic networks have recovered strongly
post-Covid lockdowns – Air New Zealand is no exception
Brazil
70%
Japan
61%
Mexico
88%
New Zealand
93%
26

AIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULT
Liquidity and gearing position
$ millions30 June 202130 June 2020
Gross debt(3,308)(3,701)
Cash, restricted deposits and net open
derivatives
603735
Net debt(2,705)(2,966)
Gross debt/EBITDA8.04.4
Net debt/EBITDA6.53.6
Gearing71.0%69.2%
Total liquidity1,4161,338
Liquidity (% of 2019 revenue)24.5%23.1%
Moody's ratingBaa2 (investment grade)Baa2 (investment grade)
27

AIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULT
Loss before other significant items and taxation
1
Jun 2021
$M
Jun 2020
$M
Loss before taxation (per NZ IFRS)
(411)(628)
Add back other significant items:
De-designation of hedges
18105
Aircraft impairment and lease modifications
78338
Reorganisation costs
39140
Disestablishment of fair value aircraft hedges
-46
Gain on sale of airport slots
(21)(21)
FX gains on uncovered foreign currency debt
(143)(67)
Loss before other significant items and taxation
(440)(87)
1
Loss before other significant items and taxation represent Earnings stated in compliance with NZ IFRS (Statutory Earnings) afte r excluding items which due to their size or
nature warrant separate disclosure to assist with understanding the underlying financial performance of the Group. Loss 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 2021 annualfinancial statements.
28

AIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULT
Jun 2021
$M
Jun 2020
$M
Movement
$M
Movement
%
Operating revenue
2,517
4,836
(2,319)(48.0%)
Loss before other significant items and taxation
(440)
(87)
(353)(405.7%)
Loss before taxation
(411)
(628)
21734.6%
Net loss after taxation
(289)
(454)
16536.3%
Operating cash flow
323
230
9340.4%
Cash position
266
438
(172)(39.3%)
Gearing
71.0%
69.2%
-(1.8 pts)
Financial overview
29

AIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULT
Jun 2021Jun 2020Movement
1
Passengers carried (‘000s)
8,649
13,525
(36.1%)
Available seat kilometres (ASKs, millions) –
passenger flights
10,304
36,335
(71.6%)
Available seat kilometres (ASKs, millions) –
passenger and cargo-only flights
17,41038,486(54.8%)
Revenue passenger kilometres (RPKs, millions)
5,908
29,568
(80.0%)
Load factor
57.3%
81.4%
(24.1 pts)
Passengerrevenue per ASKs as reported
(RASK, cents)
14.3
10.8
31.5%
Passengerrevenue per ASKs, excluding FX
(RASK, cents)
14.3
10.8
31.7%
Group performance metrics
1
Calculation based on numbers before rounding.
30

AIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULT
Domestic
Jun 2021Jun 2020Movement
1
Passengers carried (‘000s)
8,191
8,821
(7.1%)
Available seat kilometres (ASKs, millions) –
passenger flights
5,480
5,619
(2.5%)
Revenue passenger kilometres (RPKs, millions)
4,244
4,552
(6.8%)
Load factor
77.4%
81.0%
(3.6 pts)
Passengerrevenue per ASKs as reported
(RASK, cents)
21.7
23.6
(7.8%)
Passengerrevenue per ASKs, excluding FX
(RASK, cents)
21.7
23.6
(7.8%)
1
Calculation based on numbers before rounding.
31

AIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULT
1
Pacific Islands including Bali and Hawaii.
2
Calculation based on numbers before rounding.
Tasman & Pacific Islands
1
Jun 2021Jun 2020Movement
2
Passengers carried (‘000s)
386
3,002
(87.1%)
Available seat kilometres (ASKs, millions) –
passenger flights
2,214
10,367
(78.6%)
Revenue passenger kilometres (RPKs, millions)
964
8,265
(88.3%)
Load factor
43.5%
79.7%
(36.2 pts)
Passengerrevenue per ASKs as reported
(RASK, cents)
6.4
9.4
(32.0%)
Passengerrevenue per ASKs, excluding FX
(RASK, cents)
6.4
9.4
(32.4%)
32

AIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULT
International
Jun 2021Jun 2020Movement
1
Passengers carried (‘000s)
72
1,702
(95.8%)
Available seat kilometres (ASKs, millions) –
passenger flights
2,610
20,349
(87.2%)
Revenue passenger kilometres (RPKs, millions)
700
16,751
(95.8%)
Load factor
26.8%
82.3%
(55.5 pts)
Passengerrevenue per ASKs as reported
(RASK, cents)
5.3
8.1
(34.8%)
Passengerrevenue per ASKs, excluding FX
(RASK, cents)
5.3
8.1
(33.7%)
1
Calculation based on numbers before rounding.
33

AIR NEW ZEALAND 2021ANNUAL RESULT
1,022
(560)
(68)
(56)
(27)
311
0
100
200
300
400
500
600
700
800
900
1,000
1,100
2020
FUEL COST
VOLUMEUNDERLYING
PRICE
NET HEDGING
IMPACT
FX
MOVEMENTS
2021
FUEL COST
$ millions
Fuel cost movement
$124 million
effective decrease
in fuel price
(12%)
Decrease in
jet fuel price
US$70 to US$55
per barrel
June 2021
hedge gain of
$5m
vs
June 2020
hedge loss of
$51m
34

AIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULT
CASK
INCREASED
22.2%
1
Excluding fuel price movement, foreign exchange and third-party maintenance.
2
Total RASK refers to Operating Revenue per available seat kilometre.
• CASK
1
increased 22.2%, reported CASK increased 18.8%
CASK movement
Commentary
•CASK increased due to:
−Diseconomies of scale and the
change in mix of network flying
towards short-haul due to Covid-19
schedule changes and border
closures
−A moderate level of cost being held
to ensure operational readiness for
when borders start to reopen
•Total RASK
2
increased 15%
reflecting the change in network
mix towards shorter sector flights
35

AIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL RESULT
1
From 2021 onwards, excludes the Boeing 777-200ER fleet and one leased Boeing 777-300ER that are not
expected to be returned to service.
20212022202320242025
Boeing 777-300ER76665
Boeing 787-9/787-101414141616
Airbus A3202017151313
Airbus A320/A321neo1114171818
ATR72-6002829292929
Bombardier Q3002323232323
Total Fleet103103104105104
7.0
7.5
7.1
7.1
6.7
7.0
7.6
8.2
9.1
20172018*2019*202020212022202320242025
Aircraft fleet age in years
(seat weighted)
1
HistoricalForecast
Aircraftdelivery schedule (as at 30 June 2021)
Number in
existing fleet
Number
on order
DeliveryDates (financial year)
2022202320242025
Owned fleet on order
Boeing 787
142***--2-
Airbus A320/A321neos
117**331-
ATR72-600
28
1 1---
* Excludes short-term leases which provide cover for the global Rolls-Royce engine issues.
**Does not reflect two A321neos planned for delivery in 2027 financial year for which deferral
rights have been assumed.
*** Does not reflect six Boeing 787s planned for delivery from 2026 financial year for which slide
rights have been assumed.
Fleet delivery and age update
36

AIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL 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)
Earnings before interest, tax,
depreciation and amortisation
(EBITDA)
Operating earnings (before depreciation and amortisation, net finance costs, associate earnings, other significant items and
taxation) plus finance income and cash dividends received from associates less foreign exchange gains/losses
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
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 on passenger flights 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 2021 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
37

AIR NEW ZEALAND 2021ANNUAL RESULTAIR NEW ZEALAND 2021ANNUAL 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
38

AIR NEW ZEALAND 2021ANNUAL RESULT

---

2021
ANNUAL
SHAREHOLDER
REVIEW

2
AIR NEW ZEALAND ANNUAL SHAREHOLDER REVIEW 2021
It also reflects the tireless efforts, skill and sheer
determination of our people, the Executive team and
other key stakeholders across our supply chain to
keep our customers connected and travelling safely.
Teams from all areas of the business have responded
quickly to ever-changing operational conditions,
introducing new cargo routes to create further revenue
opportunities, increasing capacity on our domestic
network to near pre-Covid levels to match heightened
demand for leisure travel here in New Zealand, and
implementing the necessary protocols to launch our
first short-haul international travel bubbles.
These milestones have been hugely important
for Air New Zealand, providing us with small
but much needed steps towards some form of
normalcy, although the complexity caused by
Covid-19 and its multiple variants continues to
create challenges, volatility and uncertainty. In the
last three months alone, our people have dealt
with a great deal of complexity and uncertainty
as we worked to respond to changing border
conditions on the Tasman due to a surge of
community transmission of Covid-19 in Australia,
and at home another strict nationwide lockdown
this month reminds us how there is no easy fix.
Our people and customers have been patient and
supportive throughout this difficult time, and on
behalf of the Board, I want to thank everyone for
their continued support of our airline.
LETTER FROM THE CHAIRMAN
Tēnā
koutou
katoa
The result for the 2021
financial year continues to
reflect the broad sweeping
impacts of Covid-19 on our
airline, and on the aviation
and tourism industries
more generally.
Dame Therese Walsh – Chairman

3LETTER FROM THE CHAIRMAN
AIR NEW ZEALAND GROUP
LETTER FROM THE CHAIRMAN
(CONTINUED)
Letter from the Chairman 2
Letter from the Chief Executive Officer 7
Our people navigating through Covid-19 12
Key investment highlights 14
Financial Commentary 16
Change in Profitability 20
Financial Summary 21
Financial Position 22
Covid-19 has challenged so much of what we as
Kiwis hold dear to our hearts – the ability to connect
with our friends, whānau and colleagues in person,
and travelling to explore new cultures, food and
different ways of life. I am personally very proud of
how Air New Zealand is navigating its way through
Covid-19, providing a strong domestic schedule
and doing everything we can to keep Aotearoa
connected to the world. We have again demonstrated
Air New Zealand is a crucial part of New Zealand’s
infrastructure, not only by continuing to connect
New Zealanders to each other while borders remain
closed, but also by keeping vital cargo moving
within New Zealand and around the globe. While
there is no shying away from the fact we still have
a tough and uncertain road ahead, I am confident
Air New Zealand will continue to play a key role in
New Zealand’s recovery from Covid-19.
Capital raise and liquidity
As announced on 13 August 2021, the Company
received a letter from the Minister of Finance
outlining his view that the current environment
is not sufficiently certain and stable to enable
the Crown to provide a firm pre-commitment to
support a planned capital raise at this time.
In this context, the Company has,
in consultation with the Crown,
decided to further defer its planned
capital raise from 30 September
2021 until the first available
window in the first quarter of
calendar year 2022.
Given the critical role the airline has in New Zealand’s
economy and society, the Crown has again confirmed
its longstanding commitment to maintaining a
majority shareholding in Air New Zealand. Subject
to Cabinet being satisfied with the terms of the
Company’s proposed capital raise at the relevant
time, the Crown has confirmed it will participate in a
capital raise by purchasing the number of new shares
necessary to maintain a majority shareholding.
On completion of the recapitalisation, the Company
expects to repay all amounts drawn under the Crown
Standby Loan Facility. The Crown has confirmed to
the Company that it shares this expectation.
Until the recapitalisation is completed, Air New
Zealand has access to sufficient liquidity under the
Crown Standby Loan Facility to allow the Company
to continue operating and investing in our world-
class airline.
Gearing and dividend expectations
We ended the 2021 financial year with gearing
of 71 percent, an elevated level from Air New
Zealand’s stated target gearing range of 45 percent
Tēnā
koutou
katoa
Domestic capacity increased to cater to the outstanding support for regional travel

4
AIR NEW ZEALAND ANNUAL SHAREHOLDER REVIEW 2021
LETTER FROM THE CHAIRMAN
(CONTINUED)
to 55 percent as a result of the losses incurred
since Covid-19. Despite the impact to our balance
sheet, the airline maintained an investment grade
credit rating.
The Board continues to focus on preserving
Air New Zealand’s liquidity, and given the ongoing
uncertainty and continuing financial pressures on
the airline, has determined it will not declare a final
dividend for the 2021 financial year.
Air New Zealand’s Board does not expect to consider
payment of dividends before the airline’s earnings
and gearing substantially recover, and in the context
of a supportive macroeconomic environment.
Performance update
Air New Zealand has delivered a loss before other
significant items and taxation
1
of $440 million –
a statutory loss before taxation of $411 million and
a statutory loss after taxation of $289 million for
the 2021 financial year.
Despite the ongoing challenges of the past
12 months, the Domestic network has formed
the backbone of our recovery and was a major
contributor to operating revenues of $2.5 billion.
Prior to the latest national lockdown this August,
domestic capacity had been tracking in excess
of 90 percent of pre-Covid levels and has
underpinned our operational schedule for more
than a year and a half. It has been particularly
pleasing to see that domestic leisure travel had
reached higher levels than pre-Covid times, at 130
percent in the three months to the end of July 2021,
with Kiwis continuing to explore the wonderful
sights New Zealand has to offer. In the past three
months we have also seen corporate customers
return to the skies in high volumes, at around 90
percent of 2019 levels. This is a huge milestone for
the airline given there was a view taken by many
that this much valued customer segment may not
return to pre-Covid levels of travel.
The other major contributor to revenue this year
was our Cargo business, delivering $769 million,
an increase of 71 percent on the prior year. The
significant increase in cargo revenue reflects a
further year of keeping New Zealand exporters
connected to their international trade partners
with the assistance of airfreight support schemes
introduced by both the New Zealand and
Australian Governments contributing $333 million
as a one-off tailwind for the 2021 financial year.
The opening of the trans-Tasman bubble in
April this year was another significant milestone
and contributed to revenue across April, May
and through June. After more than one year of
international passenger travel being restricted
to repatriation flights, people were thrilled at the
prospect of having this key part of our short-
haul network operating again. We saw strong
immediate bookings of around 90 percent of
pre-Covid levels in the first week and were able to
bring back more than 220 cabin crew and pilots to
support these routes. However, the resurgence of
community transmission of Covid-19 in Australia,
and the suspension of the trans-Tasman bubble
shows how truly volatile the situation is, and that
we must remain agile and vigilant in our response
to the evolving situation.
The airline has maintained a strong focus on cost
discipline throughout the year. Operating costs are
down 46 percent on the prior year on 55 percent
less capacity. This is an encouraging result in
the context of additional spend incurred with the
opening of two travel bubbles and the holding costs
associated with ensuring operational readiness
when international borders reopen. The airline saw
an increase in cost per available seat kilometre
Deborrah – Direct Sales Contact Centre Consultant
1. Refer to the Financial Commentary section on page 16

5LETTER FROM THE CHAIRMAN
AIR NEW ZEALAND GROUP
LETTER FROM THE CHAIRMAN
(CONTINUED)
(CASK) of 22 percent
2
, although this is a reflection
of the mix of flying towards domestic, which has
shorter sector distances and smaller aircraft leading
to reduced economies of scale.
I am proud of what we have achieved in this volatile
environment.
We couldn’t have done it without our people
I admire our people for the passion and
perseverance they have shown over the past
18 months. Without their commitment to keeping
customers flying, and their ability to flex and adapt
to the ever-changing circumstances we continue
to face, we wouldn’t be in the position we are now.
The Board has been out in the business, engaging
with people across the airline to hear how
Covid-19 has impacted them, both personally and
professionally, and to see the great work being
done behind the scenes as we move through the
survive phase. I’m so impressed with the resilience
they have shown, particularly when they farewelled
colleagues, picked up extra tasks and dealt with
new challenges on a daily basis.
I was excited to see we have maintained our
position of having the best corporate reputation
in New Zealand – it is phenomenal to receive this
recognition in the midst of these challenging times.
I couldn’t be prouder that the extraordinary work
of our people, who have kept Kiwis connected with
each other and goods moving around the globe,
is being appropriately acknowledged.
I would like to thank Greg and his Executive team
who have kept the business stable and steady
through these unpredictable times. Greg’s
leadership and dedication to our people has kept
everyone informed and moving together in the
right direction. It was a tough time to step into the
airline industry, and Greg has shown how resilience,
determination and strong leadership can make the
best of a difficult situation.
Thank you also to the Board members who have
provided clear guidance and backing for the
Executive and supported decisions such as bringing
back some remuneration and benefits for Air New
Zealanders to acknowledge their exceptional
efforts, including the NZ$1,000 award of shares or
cash. I am proud to work with this amazing team as
we continue to steer the business through these
uncharted waters.
Moving towards the revive phase
As we move into financial year 2022, it is clear there
is still a significant degree of uncertainty ahead.
What does give me great hope is the resiliency of
Kiwis taking to the sky on our domestic network
barring interruption from various lockdown events in
New Zealand. We have increased domestic capacity
across the board and seen strong support for travel
to the regions. We have been able to unlock new
demand and provide lower fares to make the regions
more accessible. The success of this approach,
along with marketing campaigns in partnership with
Tourism New Zealand highlights Kiwis continued
love for all things travel.
The Government’s plan to have the majority of Kiwis
vaccinated by the end of the year will be crucial, and
as more people both in New Zealand and across
the globe get vaccinated, we hope to see a different
form of normality resume. We are pleased at the rate
of vaccination among Air New Zealanders with 84
percent of our frontline employees now having had
at least one vaccine and 81 percent fully vaccinated.
A huge thank you to everyone who has been
vaccinated – this is an important line of defence to
keep ourselves, our customers and community safe,
and will be essential for getting borders opened up.
The New Zealand Government recently unveiled its
plan for how it sees New Zealand’s borders reopening
to the world. We are supportive of the steps being
taken to reopen the border safely, including a phased
approach given there isn’t a one-size-fits-all solution.
What is clear is vaccines and other innovations
like digital health passports will play an extremely
important role in enabling borders to reopen.
Nathan showing the Board how to load a cargo hold in Auckland
2. Excluding fuel price movement, foreign exchange and third-party maintenance

Tēnā
koutou
e ōku
rangatira
6
AIR NEW ZEALAND ANNUAL SHAREHOLDER REVIEW 2021
LETTER FROM THE CHAIRMAN
(CONTINUED)
Board Director changes
I’m thrilled to announce the appointment of
Alison Gerry, Claudia Batten and Paul Goulter as
directors on the Air New Zealand Board as we bid
farewell to Jan Dawson, Rob Jager and Linda Jenkinson.
Alison has an incredibly strong
background in governance, capital
management, audit and risk from her
time
as a director of Spark, TVNZ,
Kiwibank and her current directorships
with ANZ Bank New Zealand, Sharesies,
Infratil and Suncorp New Zealand.
She will be taking over as Chair of the
Audit and Risk Committee and I look
forward to her leadership in this space.
Claudia brings a wealth of digital
expertise, having co-founded Victor
and Spoils, the world’s first advertising
agency built on crowd-sourcing
principles and one of the founders of
gaming advertising network Massive
Corporation. She is the current digital
advisor to the Westpac New Zealand
Board, is the Chair of Serko and a
director at Vista Group. She has won
many awards for her work supporting
the New Zealand technology sector
and I know we will tap into her vast
experience as we look to become the
world’s leading digital airline.
Paul has worked closely with unions
both in New Zealand and Australia over
the past 40 years, including time as
Secretary of the New Zealand Council
for Trade Unions and as General
Secretary of Finsec. He is currently
National Secretary for New Zealand’s
largest education union, NZEI Te Riu
Roa, and a director of the Co-operative
Bank. We welcome his extensive
knowledge in this space to support the
airline in the continued journey to build
trusted and inclusive relationships with
our people and the unions.
I’m excited about welcoming all three
to the Board and seeing the new
perspectives they bring to support our
objectives of prioritising people and
creating digital solutions that empower
customers, and how the Board can
support the airline through the next
phase
– navigating through and
beyond Covid-19.
I want to take this opportunity to
thank Rob and Linda, our long-
serving directors who are retiring
this year. We have appreciated their
insights and guidance which have
helped shape the airline over the
years and supported us through the
significant impact of Covid-19 over
the past 18 months.
Finally, a special thanks to Jan, our
Deputy Chairman, who agreed to
continue in her position, providing
consistency to our Board while we
navigated our way through this
unprecedented time for the airline.
Her wisdom, experience and advice
were invaluable. I want to wish her
all the best for the future.
I am proud to say Air New Zealand has not rested
on its laurels waiting for borders to open. We have
focused on building significant muscle and agility
in every facet of our operations and have progressed
key elements of our refreshed strategy, Kia Mau,
to set the airline up for success over the long-
term. We believe that by prioritising our people
and customers, taking action on sustainability and
delivering digital excellence we will be in the best
possible position for the future.
Outlook
Given uncertainty surrounding the current national
lockdown, ongoing international travel restrictions
and uncertainty regarding the level of demand
as these restrictions lift, Air New Zealand has
suspended 2022 earnings guidance.
In closing
While the latest outbreak of Covid-19 in New Zealand
has been disappointing, I am confident there is still
strong demand for air travel in the future, and Air
New Zealand’s role in providing that critical linkage
for our country will remain.
I want to take a moment to thank our shareholders,
customers, suppliers and other key stakeholders
for
their support and engagement as we work together.
Ngā mihi nui

Dame Therese Walsh
Chairman
26 August 2021

Playing the hand we were dealt, we have kept our
planes flying every single day, maintained cost
discipline and developed new capabilities and
dexterity while taking some important steps in the
delivery of our refreshed strategy, Kia Mau.
Time has not been wasted. We are focused on building
back better for when the borders
reopen, encouraged
by our dedicated team of Air New Zealanders, our
loyal customers and our strong domestic business.
Although the timing of a return to international travel
remains highly uncertain, and indeed, even the
most recent nationwide lockdown demonstrates the
complexity we must continue to navigate, the path
forward to the future is clear.
Our people and customers
In a year in which we saw markets open and
close, and while we continue to face uncertainty
around travel, we are humbled and inspired by the
unwavering commitment of our people and the
support of our customers.
I am acutely aware of the many sacrifices Air New
Zealanders continue to make as they work to deliver
our purpose – connecting New Zealanders with
each other and New Zealand with the world. From
the employees who took pay cuts through the year,
to the teams who have worked twice as hard to
deliver essential export services; from the cabin
crew and pilots undergoing regular Covid-19 tests
Tēnā
koutou
e ōku
rangatira
The international impact of the continuing
pandemic meant the last financial year
was one in which Air New Zealand
effectively operated at a third of its normal
passenger capacity, but with a level of
energy that far exceeded that.
Greg Foran – Chief Executive Officer
7LETTER FROM THE CHAIRMAN
|
LETTER FROM THE CHIEF EXECUTIVE OFFICER
AIR NEW ZEALAND GROUP
LETTER FROM THE CHIEF EXECUTIVE OFFICER

8
AIR NEW ZEALAND ANNUAL SHAREHOLDER REVIEW 2021
LETTER FROM THE CHIEF EXECUTIVE OFFICER
(CONTINUED)
and quarantine to support customers returning
home, to our domestic employees who continue to
help customers adapt to the challenges of travelling
during a pandemic – thank you.
Air New Zealanders continue to do extraordinary
things in extraordinary times, and we share some of
their stories in this shareholder report. It was hugely
important to the Board and Executive to recognise
that sacrifice via a $1,000 award of shares or cash to
our people. We also supported 1,200 employees who
struggled to manage day-to-day finances due to the
pandemic with grants from the Āwhina Trust, which is
funded by Board and Executive salary sacrifices and
donations from other Air New Zealanders.
Our ability to adapt to change is now becoming a
muscle, with an increasingly fluid response to short
notice changes that impact where and when we
can fly, shutting down fast in one area while moving
rapidly to open new routes for cargo.
Our team’s no-fuss ability to respond quickly when
conditions change is not only one of this year’s
biggest achievements but inspires great confidence
for the future return of competitive air travel.
We are also grateful for the ongoing aroha from our
customers, whose support has seen our domestic
business rebound strongly following various
lockdowns, and whose trust and engagement with
our people has allowed us to test and introduce new
features to improve our service.
Sahil – Cargo Warehouse Agent

9LETTER FROM THE CHIEF EXECUTIVE OFFICER
AIR NEW ZEALAND GROUP
LETTER FROM THE CHIEF EXECUTIVE OFFICER
(CONTINUED)
This is embodied in our promise of manaaki – to take
care further than any other airline – and it is coming
to life despite constant change.
Being named New Zealand’s top company for
corporate reputation for the seventh year running
felt very special given the impact the pandemic had
on so many customers’ travel plans.
We do not take this for granted.
Making the most of the opportunity
I have learned over time that building a chain of trust
is critical with all stakeholders. Trust allows us to
move forward with pace, and that is critical for us to
reach full potential.
The airline has used this period to deliver many
improvements for our customers. This is a process
of delivering on the brilliant basics that matter –
making travel simpler, easier and hassle free for
customers. Our aim is to focus each day on doing
100 things one percent better. Many of these are
already playing out across the airline.
We have revisited our domestic business,
reimagining our customer proposition. We had
fun with our customers during inflight trials of
new food and beverage offerings, learning about
Kiwis’ changing tastes and preferences, and most
importantly discovering our customers love to have
their say on the features of our service as they fly
with us. We look forward to offering you something
new as we serve you in the years ahead and
showcase a range of New Zealand products.
Recently we made changes to give customers more
choice of flight times and access to even more low
fares. We hope this will help more Kiwis see their own
country, while supporting the many businesses that
play a part in the tourism sector.
Fares have been capped to ensure demand does not
mean travel is out of reach at times when it’s needed
most, and we have reintroduced the popular Fast Bag
service with reimagined features.
We improved our unaccompanied minors service to
make travel easier for our most valuable cargo and
safer for our people.
Our compassionate fare scheme has been simplified
to provide customers with flexibility to change or
credit their bookings.
All of these changes were made for our customers
during a period when, domestically, it was business
as usual – or busier.
Until the most recent nationwide lockdown this
August, we had seen domestic leisure demand
at nearly 130 percent of pre-Covid levels over the
three months to 31 July 2021 when compared to the
equivalent period in 2019. July 2021 was our busiest
holiday period yet, when more than 550,000
passengers flew with us domestically.
It has also been encouraging to see corporate
customers starting to return to the skies, averaging

90 percent of pre-Covid levels in the past three months
compared with the same period in 2019. We know
Kiwis continue to value connecting with each other.
87
%
Customer Satisfaction
92
%
Domestic On Time
Performance (OTP)
71
%
Increase in non-flight
Airpoints
™
redeemed

10
AIR NEW ZEALAND ANNUAL SHAREHOLDER REVIEW 2021
We are grateful for the support from the Government’s
Maintaining International Air Connectivity (MIAC)
scheme at a time when we are still flying just a fraction
of the international passenger network we operated
prior to Covid-19.
Cargo revenue increased 71 percent compared to the
prior year due to continued strong demand for New
Zealand products and domestic consumption.
The airline is currently flying an average of 51 cargo
flights
1
each week to 16 ports, including Australia,
Hong Kong, Shanghai and Los Angeles. We also
mobilised quickly to fly to new destinations like
Guangzhou and returned to destinations like Taipei
for the first time since we closed our borders.
I am proud that, despite the challenges, we continue
to connect New Zealanders and New Zealand.
We also continue to confront and drive sustainability
and climate action, taking meaningful steps and
engaging closely with the Government to set a
pathway to achieving net zero emissions by 2050.
Electric, hybrid, and hydrogen aircraft are coming,
and Aotearoa is uniquely placed to adopt these
technologies on our domestic network given
our highly connected regional network and high
proportion of renewable energy.
Sustainable aviation fuel (SAF) remains critical as
the only current option for decarbonising long-haul
flights out to 2050, and we continue to advocate for
new policy measures to support the supply of SAF in
Aotearoa and look forward to making real progress
with policy makers in the year ahead.
All of our activity has been underpinned by a new
brand campaign that has really hit the mark and a
relaunch of the values that continue to be a hallmark
of the Air New Zealand team – Welcome as a Friend,
Can Do, Share your Aotearoa and Be Yourself.
What lies ahead
Loyalty programmes are key assets for airlines
globally and we believe this will be a source of
future growth for Air New Zealand. We are
redesigning our programme, refocusing and
enhancing Airpoints™ to increase engagement with
customers, having completed a full review of our
offering to understand what matters to our
3.6 million plus Airpoints™ members.
We are looking to expand our partnerships to
introduce new, improved benefits such as better
upgrades, greater personalised service and
increased ability to share benefits among family and
friends. Many new partners will give you more options
to spend your points and there are several exciting
initiatives to unfold this year.
In time, we will become ‘the world’s leading digital
airline’ and are taking the first steps toward a
truly competitive advantage in digital. A new
supply chain system has been installed across
LETTER FROM THE CHIEF EXECUTIVE OFFICER
(CONTINUED)
Left to right; Greg Foran – Chief Executive Officer, Captain David Morgan – Chief Operational Integrity & Safety Officer, Leanne Geraghty – Chief Customer & Sales Officer,
Richard Thomson – Chief Financial Officer, Carrie Hurihanganui – Chief Operating Officer, Mat Bolland – Chief Corporate Affairs Officer, Nikhil Ravishankar –
Chief Digital Officer, Nikki Dines – Chief People Officer
1. The airline flies ~50 flights per week to 16 ports with the trans-Tasman bubble
suspended, and ~30 flights per week to 12 ports when the trans-Tasman is open

11LETTER FROM THE CHIEF EXECUTIVE OFFICER
AIR NEW ZEALAND GROUP
the business, we added digital capability for our
turboprop pilots and cabin crew, and converted
legacy systems in Engineering & Maintenance.
We deployed a world-leading revenue management
system for our domestic fleet, while improving self-
credit options for customers.
We have a full plate for this year as we complete
work on a new crewing system, develop data and
analytics capabilities and commence in earnest on
our new loyalty platform, among others.
These are complemented by ongoing, seemingly
small but impactful changes to the way we present
our service, such as simplifying our products and
offering real flexibility for fares and refunds. We
are already trialing a new subscription product,
reviewing our Seats to Suit offer and rolling out
a host of other initiatives from pets to bicycles to
reduced excess baggage fees.
Our work on building an exceptional domestic
business will position us well when we re-open
our long-haul business in the future. We are as
excited as our customers about seeing this part
of Air New Zealand grow again.
When reflecting on the last year, I recognise it has
actually been a long 18 months since the impact
of Covid-19 first hit the company. We are full of
optimism about our business and what we can do
for customers in the years ahead.
Our plan is in place. And I am incredibly excited
about the new Air New Zealand we are building.
We fly for you, and more than ever, we thank you
for flying Air New Zealand.
Ngā mihi

Greg Foran
Chief Executive Officer
26 August 2021
LETTER FROM THE CHIEF EXECUTIVE OFFICER
(CONTINUED)
Earlier this year we welcomed
Richard Thomson and Mat Bolland to
the Executive team – Richard into the
role of Chief Financial Officer and Mat
as our Chief Corporate Affairs Officer.
Richard is no stranger to Air New
Zealand, having previously spent 13
years with the airline in senior roles
including General Manager Networks
and General Manager Corporate
Finance, before taking a role as Chief
Financial Officer at Metlifecare. We
are delighted to have him back on the
team and his insights and deep aviation
experience will help us drive the
airline’s recovery plan and navigate us
through and out of Covid-19.
The newly created role of Chief
Corporate Affairs Officer brings
our government relations, regional,
cultural and regulatory affairs, and
communications functions together
to strengthen key stakeholder
relationships which have never been
more important. Mat has a wealth of
experience in this space with more than
20 years corporate affairs experience,
most recently in telecommunications
at 2degrees and in energy and water
during periods of crisis and significant
industry change.
Later on this year we look forward
to welcoming Nikhil Ravishankar as
our Chief Digital Officer. Nikhil is a
digital expert who has led a number of
technology transformations, including
in his current role as Chief Digital Officer
at Vector New Zealand, as Managing
Director at Accenture New Zealand
and as Head of Technology Strategy
at Telecom NZ. With digital being a key
enabler of our Kia Mau strategy,
I know Nikhil’s proven track record for
delivering results will be essential in
helping us achieve our goal of being
the world’s leading digital airline.
Left to right; Richard Thomson – Chief Financial Officer, Mat Bolland – Chief
Corporate Affairs Officer, Nikhil Ravishankar – Chief Digital Officer
Executive changes

12
AIR NEW ZEALAND ANNUAL SHAREHOLDER REVIEW 2021
Liesl — Domestic Scheduling Manager
Keeping our network fine-tuned
“As a Networks team we are
responsible for setting the network
schedule and making sure everything
is in place to deliver it. Covid-19 has
really changed the way we work and
kept us on our toes.
We were frantic through the first
lockdown with our schedule changing
on a daily if not hourly basis. We
had to react quickly to Government
announcements because we knew our
customers, were anxious to get back to
loved ones and wanted certainty about
what flights would be available.
There were numerous complications
to factor into our schedule planning,
such as making sure there were
enough flights during Alert Level 4 to
move cargo, medical personnel and
critical equipment around the country,
while at the same time ensuring we
weren’t flying empty planes. We had
to manage the competing priorities of
our stakeholders to design the best
schedule possible.
As a team we still work reactively with
travel bubbles opening and closing
regularly, making it hard to predict
demand. Our schedule sells up to 350
days out and we used to have a pretty
accurate schedule published up to eight
months out. Now we’re lucky to be able
to publish an accurate schedule two
months out based on the constantly
changing circumstances.
One positive through lockdown was
maintaining good team connection and
getting to know each other better with
the crossover of work and personal
lives. We have maintained this strong
team bond and have a better empathy
for each other’s wellbeing.”
Our people from around the business share
their stories on how Covid-19 has impacted
their day-to-day lives.
Christina — Cleaner at Auckland International Airport
Cleaning taken to another level
“Over my 12 years with the airline,
I have seen a number of changes
– but nothing could have prepared
us for Covid-19. It was certainly an
eye-opener when New Zealand’s
borders closed.
Internationally the workload has
decreased but the standard for
cleaning has been significantly
heightened. We wear high levels
of personal protective equipment
(PPE) and make sure everything
is sanitised to the strictest levels
to keep ourselves, crew and
customers safe.
The biggest challenge for me
personally has been the risks
that Covid-19 brings as a frontline
worker. Testing every fortnight
and following stringent PPE
requirements has become second
nature. I take these responsibilities
seriously because I understand
how important it is to do my
bit to keep my family and our
communities safe.
I was worried about job security
with the talk of possible
redundancies. I realised I either
had to wait it out or be proactive
and find another job – I chose to do
both and started working at a local
supermarket. The airline provided a
lot of support for people which was
great, and I’m one of the lucky ones
who still has a role.
I feel safer now we are vaccinated,
and it is good to see everyone
doing their bit to make the country
safer from Covid-19.”
OUR PEOPLE NAVIGATING THROUGH COVID-19
Pictured: Sunyong – Cleaner
Pictured: Liesl – Domestic Scheduling Manager

Marlene — Customer Services Consultant
Supporting customers through turbulent times
“The first few months of Covid-19
were hectic to say the least, and it
was a struggle to find a good work-
life balance, especially when your
workstation is set up in your bedroom.
As a team we dealt with more than
300,000 refund and credit calls
from June to September 2020, and
completely changed the way we had
to work. We needed to learn a new
system and design online training for
credits – much harder than face-to-
face training. The system is fantastic
though as it supports our customers
better and has taken some of the
pressure off the team.
Because we were so busy, it was a
great opportunity to empower team
members to do more and upskill
faster, and it was great watching their
confidence grow. The team was super
supportive of each other, and we
made sure wellbeing was a priority.
We appreciated the airline looking
after us by keeping us safe at home
and not exposed to the virus.
Even now, many of our team work
flexibly from home and we really
appreciate the fact that management
have allowed us to ingrain greater
flexibility into our lives. It means I can
spend more time with my children
before and after school which I really
value. I would say that my work-life
balance has improved significantly –
even with changing travel restrictions
and increased call volumes, we have
the right systems and processes
in place to deal with these more
effectively, so it is easier to scale up
when conditions change.”
13
AIR NEW ZEALAND GROUP
OUR PEOPLE NAVIGATING THROUGH COVID-19
Sheryl — Deputy Services Manager
Helping Kiwis return home
“As cabin crew and pilots flying
international repatriation, MIQ and
cargo flights we have faced many
challenges with the ever-changing
Covid-19 landscape, particularly
extended periods of isolation and
constant testing.
We do everything gloved and masked
– working on board, transiting
through airports and we are confined
to hotel rooms when we do arrive
at our destination... it is our new
normal. Wearing masks and gloves
creates a barrier between us and
our customers. You lose the facial
interactions and it’s amazing how
much of a difference this makes.
The biggest challenge for me has
been not being able to interact and
connect as a team due to isolating
in hotels overseas. Crew are “people
people”, so this has always been an
important part of who we are and is,
I believe, the reason Air New Zealand
is renowned for its superior customer
service. I am trying to bring some fun
back to build team spirit, like baking
and walking groups but it’s definitely
harder these days.
Covid-19 has changed aspects of my
personal life too – our friends give
us a wide berth; my family weren’t
comfortable with me coming to
Christmas; it is hard to get hairdressing
appointments; people avoid me in
public places when I’m in uniform, all
because of the work I do to bring Kiwis
home to their loved ones. Now we are
vaccinated and being tested regularly
I feel less ostracised, and the airline
has done everything they can to make
it as easy as possible for us such
as lobbying for home isolation over
quarantine hotels.”
OUR PEOPLE NAVIGATING THROUGH COVID-19
(CONTINUED)
Pictured: Alison – Team Leader Contact Centre
Pictured: Naomi – Inflight Service Manager Short Haul

AIR NEW ZEALAND ANNUAL SHAREHOLDER REVIEW 2021
14
Modern,
fuel-efficient fleet
Domestic
network strength
The Air New Zealand fleet age
is 6.7 years old, which is one of
the youngest global fleets. This is
due to the years spent investing in
best-in-class aircraft technology
across its different fleets. The fleet
not only provides the airline with
greater operational performance
and better efficiencies, it also
provides customers with a fantastic
onboard experience.
With the new Airbus A320 and
A321neos flying the Domestic,
trans-Tasman and Pacific Islands
routes, and the Boeing 787s
currently on all international flights,
fuel efficiency based on the number
of flights flying is at an all-time low.
The phasing of the fleet investment
programme has changed and
reduced overall in line with the
airline’s more focused international
network strategy. In addition, Air
New Zealand is keeping a close
eye on the future of travel and is
actively working with key partners
on opportunities for sustainable
aircraft and the role sustainable
aviation fuels can play.
Air New Zealand’s cornerstone
is its domestic network and it has
demonstrated resilience despite
Covid-19. As New Zealand’s leading
domestic carrier with over 80
percent market share for more
than 10 years, the airline is taking
an innovative approach to how it is
driving demand and incentivising
Kiwis to travel, particularly while the
borders remain closed.
Recent changes to the domestic
schedule have given customers
more choice as to when they fly.
This will enable the airline to offer
even more lower fares and unlock
new demand which will in turn
generate additional domestic
tourism. New and exciting products
and services are in store over the
next year for customers across
areas including onboard food,
fare flexibility, Airpoints™ loyalty
programme and more.
KEY INVESTMENT HIGHLIGHTS
Air New Zealand is a world-class airline, with a strong customer
proposition and modern fleet underpinned by digital innovation,
driving improvements in customer experience and profitability
through its refreshed strategy, Kia Mau.
Celebrating more than 80 years’
service, Air New Zealand has
a place of pride in the hearts of
Kiwis – and never has that been
clearer than through Covid-19.
The airline is renowned for
offering excellent service with
a down-to-earth, caring Kiwi
approach that has won the team
awards across the decades and
kept New Zealanders loyal. It
is often said by customers that
being welcomed onboard is like
coming home.
The airline’s Kia Mau strategy is
focused on continuing to deliver
this service excellence over the
short, medium and long-term. It is
focused on prioritising its people
and investing in products, services
and digital tools to further enhance
the outstanding service culture it
has, ensuring customers continue
to feel cared for while they travel
with Air New Zealand.
Unparalleled brand and
service culture

AIR NEW ZEALAND GROUP
15KEY INVESTMENT HIGHLIGHTS
Scalable Airpoints
™

loyalty programme
Focused
international strategy
Air New Zealand values it 3.6 million
Airpoints™ loyalty members and
wants to enhance the programme
to drive even stronger customer
engagement. The opportunity lies
in offering people more of what they
want from their loyalty programme.
The airline has undertaken a
full review of its programme to
understand what its members care
about so efforts can be focused
on the right areas. Expanding
partnerships to introduce new,
improved benefits for members
such as improved upgrades, greater
personalised service and a greater
ability to share benefits among
family and friends will help keep
the programme relevant and fresh,
which in turn will drive stronger
loyalty and retention.
Understanding the opportunities
for international travel in a post-
Covid world and being able to
respond quickly and offer premium
customers choice will be key to return
to profitable international operations
once demand builds back.
The advantage lies in preserving
and protecting competitive
advantages, leveraging the airline’s
strong domestic presence and
customer loyalty to stimulate
travel, and offering the optimal
network based on the fleet available
and where people want to fly, all
supported by its strategic
alliance partnerships.
Cargo has always been a key
component of the airline’s
international strategy, and its
critical role for the airline during
Covid-19 further solidifies Air New
Zealand’s importance to the New
Zealand economy. The airline has
a robust, future-proofed strategy
to maximise the potential of its
cargo business and support the
recovery of the economy.
Air New Zealand is committed to
taking action on decarbonisation,
waste reduction and sustainable
tourism – with an ambition to lead
the aviation industry globally in
sustainability and climate action.
The airline is committed to achieving
net zero emissions by 2050. Its
decarbonisation strategy focuses on
reducing gross carbon emissions,
including improvements to
operational efficiency, ongoing fleet
renewal, planning for zero emissions
aircraft, and advocacy to accelerate
the availability and commercial
viability of sustainable aviation fuel.
Reducing waste and reliance on
single-use plastic and championing
sustainable tourism continue to be
key areas of focus as well.
Taking action on
sustainability and
decarbonisation
KEY INVESTMENT HIGHLIGHTS
(CONTINUED)

16
AIR NEW ZEALAND ANNUAL SHAREHOLDER REVIEW 2021
FINANCIAL COMMENTARY
Due to the full year impact of
Covid-19 restrictions on
international travel to and from
New Zealand, Air New Zealand
reported a loss before other
significant items and taxation
of $440 million
1
for the year
ended 30 June 2021.
1. Loss 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. Loss before other significant items and taxation is reported within the Group financial statements
which are audited by the external auditors. Further details are contained within Note 3 of the Group financial statements.
Manpreet – Flight Attendant

17FINANCIAL COMMENTARY
AIR NEW ZEALAND GROUP
FINANCIAL COMMENTARY
(CONTINUED)
Including the impact of other significant items, statutory
losses before taxation were $411 million. The results for the
2021 financial year reflect the first full 12-month period of
closed international borders.
Revenue
Operating revenue for the period declined by
$2.3 billion to $2.5 billion, a decrease of 48 percent
as Covid-19 related border closures and travel
restrictions resulted in substantially reduced
international passenger flying. There was a nominal
impact from foreign exchange.
Passenger revenue declined by 63 percent to
$1.5 billion, reflecting the continued impact of limited
international travel and inbound tourists due to
Covid-19. Capacity (Available Seat Kilometres, ASK)
reduced by 72 percent excluding cargo only flights.
Including cargo only flights, capacity reduced 55
percent compared to the same period last year.
Demand (Revenue Passenger Kilometres, RPK)
decreased more than capacity for the period,
resulting in a load factor of 57.3 percent, a decline of
24.1 percentage points on the prior year. Revenue per
Available Seat Kilometre (RASK) improved 32 percent
(excluding FX) driven by a change in the mix of flying;
while total ASKs were down substantially, Domestic
ASKs made up a higher proportion of total ASKs,
increasing RASK. Domestic RASK (and Costs per
ASK (CASK)) is higher than International RASK due
to the shorter distances flown and smaller aircraft
(with fewer seats) used.
International long-haul capacity declined 87
percent with only 927 international passenger
flights operating compared to 8,222 flights pre-
Covid (excluding Cargo only flights). Demand on
international long-haul routes declined 96 percent,
with load factors decreasing 55.5 percentage
points to 27 percent. International long-haul RASK
reduced by 35 percent due to the reduction in load
factors partially offset by higher yields. Excluding
the impact of foreign exchange, long-haul RASK
declined 34 percent.
International short-haul capacity declined 79 percent
as a result of limited flying across the Tasman
and to the Pacific Islands. An increased schedule
was operated on the Tasman from mid-April 2021
following the opening of the two-way, quarantine
free travel bubble between Australia and New
Zealand. However, demand was impacted by
numerous lockdowns and the suspension of the
travel bubble due to local Covid-19 transmission
in various states in Australia. In May 2021, a two-
way travel bubble between the Cook Islands and
New Zealand was also established which led to
increased passenger flights for the remainder of
the financial year. Overall, demand on international
short-haul routes declined 88 percent, with load
factors decreasing to 43.5 percent, a reduction of
36 percentage points on the prior year. International
short-haul RASK was down 32 percent, as the
reduction in load factors was partially offset by
higher yields. International short-haul RASK was
nominally impacted by foreign exchange.
Domestic capacity decreased 2.5 percent versus
the prior financial year as high levels of leisure
demand and growing business traffic mostly offset
the lack of international tourists connecting on to
the domestic network. Demand declined by
6.8 percent resulting in load factors decreasing
by 3.6 percentage points to 77 percent. Domestic
RASK declined 7.8 percent which was more than the
reduction in load factors due to the change in mix of
leisure and business passengers. Domestic RASK
was not impacted by foreign exchange.
Image source: Destination Great Lake Taupo

18
AIR NEW ZEALAND ANNUAL SHAREHOLDER REVIEW 2021
FINANCIAL COMMENTARY
(CONTINUED)
Cargo revenue was $769 million, an increase of
71 percent on the prior year. Excluding the impact
of foreign exchange, cargo revenue increased by 75
percent, reflecting the operation of scheduled flights
under the New Zealand and Australian Government’s
air freight schemes (the International Airfreight
Capacity scheme, the Maintaining International Air
Connectivity scheme and the International Freight
Assistance Mechanism) which provided $312 million
of additional support on international flights to
allow for the movement of imports and exports to
and from New Zealand and into Australia, and the
continuation of cargo-only charters.
Contract services and other revenue were $278
million, a decrease of 38 percent from the prior year,
driven primarily by reduced maintenance activity on
contracts for third-parties, reduced lounge revenue
and fewer international repatriation charter flights.
There was a nominal impact from foreign exchange.
Expenses
Operating expenditure declined by $1.9 billion or 46
percent, to $2.2 billion with variable costs declining
substantially as a result of Covid-19 related capacity
reductions. CASK increased 19 percent, including
foreign exchange, fuel and maintenance for third-party
contracts. Excluding these items, CASK increased
22 percent. The movement was predominantly a
result of a shift in the mix of flying towards domestic,
which has shorter sector distances and smaller
aircraft and reduced economies of scale given
the smaller network flown due to Covid-19 related
border and travel restrictions. These diseconomies
include holding costs that the airline has continued to
incur in order to ensure operational readiness when
borders reopen and passenger demand returns.
The adverse movements were partially offset by fuel
price declines and a reduction in maintenance costs
associated with reduced third-party work.
Labour costs were $830 million, reducing by $367
million or 31 percent compared to the prior year.
Foreign exchange had a nominal impact on labour
costs in the period. A 55 percent decline in total
network activity due to Covid-19 and an average
33 percent reduction in headcount during the year
were the largest drivers of lower labour costs. In
addition to this, there was also a significant reduction
in discretionary labour spend, including travel
and entertainment costs, as part of ongoing cost
discipline measures. Government wage subsidies
received in the current year were $56 million, lower
than the prior year by $19 million.
Fuel costs were $311 million, declining by $711 million
or 70 percent. Excluding the impact of foreign
exchange, fuel costs reduced by 67 percent. The
decline in fuel cost was mostly driven by a 58 percent
reduction in volumes consumed reflecting lower
network capacity, which accounted for $560 million
of the savings. The average fuel price, net of hedging
gains fell $124 million, or 12 percent, as global
demand for Singapore Jet Fuel declined substantially
due to Covid-19.
Aircraft operations, passenger services and
maintenance costs were $688 million, representing
a $586 million or 46 percent year-on-year decline.
This was driven by the reduction in the number
of departures and passenger volumes and the
resulting decrease in landing, meal, lounge and crew
trip costs as well as other variable operating costs.
The reduction in net costs also incorporated an
additional $35 million of support received under the
Government’s aviation support package compared
to the same period last year.
Sales and marketing and other expenses declined
by $257 million or 45 percent reflecting lower
commission, promotional and customer activity due
to a reduction in services.
Left to right; Mathew and Tim – Trainees (Level 3)
Paul – Second in charge
Georgia – Trainee (Level 3)

19FINANCIAL COMMENTARY
AIR NEW ZEALAND GROUP
FINANCIAL COMMENTARY
(CONTINUED)
Ownership costs decreased by $112 million or
12 percent, driven by a reduction in depreciation
due to the impairment of the Boeing 777-200ER
fleet and one Boeing 777-300ER leased aircraft,
the exit of the ATR72-500 aircraft in the prior
year and reduced utilisation of capitalised engine
maintenance, partially offset by increased funding
costs and new aircraft deliveries.
The impact of foreign exchange rate changes on
the revenue and cost base in the period resulted
in a favourable foreign exchange movement of
$6 million. After taking into account a $47 million
unfavourable movement in hedging, overall foreign
exchange had a net $41 million negative impact on
the Group result for the period.
Share of Earnings of Associates
Share of earnings of associates decreased by
$20 million to $19 million, reflecting a reduction
in engine volumes serviced by the Christchurch
Engine Centre as a result of Covid-19.
Other Significant Items
The $29 million gain on Other Significant Items
included net foreign exchange gains on uncovered
debt of $143 million and a gain on sale from
landing slots of $21 million. These gains were
partially offset by aircraft impairment and lease
modifications costs of $78 million, reorganisation
costs of $39 million and the de-designation of
hedges as a result of forecast transactions no
longer expected to occur of $18 million.
Cash and Financial Position
Cash on hand at 30 June 2021 was $266 million,
a decrease of $172 million since 30 June 2020
and includes $350 million in drawings on the
$1.5 billion Crown Standby Facility (the Facility).
The airline has undertaken significant work to
reassess its longer-term capital structure and
funding needs and intends to complete an equity
capital raise raise in the first quarter of calendar
year 2022.
Operating cash flows were $323 million,
an increase of 40 percent on the prior year
reflecting an improvement on cash earnings and
favourable working capital movements, as well
as the deferral of significant payments (such
as PAYE and FBT) as the airline made use of all
available opportunities to conserve liquidity while
international borders remain closed.
Net gearing increased 1.8 percentage points to
71.0 percent compared to 30 June 2020, driven
by net losses after taxation, capital expenditure
and redundancy payments, offset by foreign
exchange movements.
The Directors have not declared a final dividend for
the 2021 financial year due to the continued impact
of Covid-19 on the business, and the conditions of
the Facility with the New Zealand Government.
Left to right; Steve – Q300 Captain
Mason – Boeing 787 Second Officer

20
AIR NEW ZEALAND ANNUAL SHAREHOLDER REVIEW 2021
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.
June 2020
loss before taxation
Passenger capacity
-$2,220m
- Capacity decreased by 72 percent (excluding cargo-only flights) due to Covid-19 border
closures and travel restrictions. Including cargo-only flights capacity reduced by 55 percent
- The Domestic network operated at 97 percent capacity compared to the prior year
reflecting strong demand for leisure travel and growth in corporate traffic offset by
a lack of international tourists and changes in domestic alert levels during the year
- International short-haul capacity declined 79 percent due to border restrictions. Two-way
quarantine free travel was established with Australia in April 2021 and the Cook Islands in
May 2021. The Tasman was impacted by numerous lockdowns and suspensions resulting
in cancellations and reduction in services
- International long-haul capacity decreased by 87 percent due to the suspension of services
as a result of the global pandemic with a small number of passenger services operating
primarily on routes supported by government international airfreight schemes
Passenger RASK
-$253m
- Domestic Revenue per Available Seat Kilometre (RASK) declined by 8 percent excluding
FX and loads declined 3.6 percentage points to 77.4 percent
- International short-haul RASK declined by 32 percent excluding FX and loads declined
36.2 percentage points to 43.5 percent
- International long-haul RASK declined by 34 percent excluding FX and loads decreased
55.5 percentage points to 26.8 percent. Limited passenger services, primarily for essential
travel and repatriations, supplemented cargo services
- Overall Group RASK improved by 32 percent excluding FX as a result of a change in
mix of network flying in the current year towards shorter sectors. Loads decreased by
24.1 percentage points to 57.3 percent
Cargo revenue
$336m
- Cargo revenue improved due to the award of cargo-only scheduled flights by the
New Zealand Government under the International Airfreight Capacity and Maintaining
International Air Connectivity schemes as well as the Australian Austrade International
Freight Assistance Mechanism
Contract services and
other revenue
-$156m
- Reduced maintenance work for third-parties, lounge revenue, charter revenue for
international repatriations and customer activity due to Covid-19
Labour
$367m
- Reduced labour costs due to an average 33 percent reduction in staffing levels resulting
from Covid-19 capacity reductions and other cost savings initiatives
Fuel
$684m
- The average fuel price declined 12 percent compared to the prior year (net of hedging)
resulting in a reduction in costs of $124 million. Consumption decreased by 58 percent
($560 million) due to the reduction in scheduled flights arising from international border
closures and travel restrictions
Maintenance
$185m
- Decrease in maintenance due to reduction in flying as well as for third-parties
Aircraft operations and
passenger services
$395m
- Reduced schedule activity due to the Covid-19 pandemic and receipt of aviation relief
package support
Sales and marketing
and other expenses
$253m
- Reduced commissions, promotional and customer activity due to the reduction in
services arising from Covid-19
Ownership costs
$117m
- Decrease in depreciation reflecting impairment of grounded widebody aircraft and fleet
exits as well as reduced utilisation of capitalised engine maintenance partially offset by
new aircraft deliveries
Net impact of foreign
exchange movements
-$41m
- Net unfavourable impact of foreign exchange hedging losses and the impact of
currency movements on revenue and costs
Share of earnings of
associates
-$20m
- Decrease in earnings from Christchurch Engine Centre driven by a reduction in engine
volumes being performed due to Covid-19
Other significant items
$570m
- Reduced aircraft impairment, lower reorganisation costs, higher foreign exchange
gains on uncovered debt, reduced losses on de-designation of hedges as a result of
forecast transactions no longer being expected to occur and foreign exchange losses on
disestablishment of fair value hedges not repeated in the 2021 financial year
June 2021
loss before taxation
-$628m
-$411m
CHANGE IN PROFITABILITY

21CHANGE IN PROFITABILITY
|
FINANCIAL SUMMARY
AIR NEW ZEALAND GROUP
Financial Performance
12 MONTHS TO
30 JUNE 2021
$M
12 MONTHS TO
30 JUNE 2020
$M
Operating Revenue
Passenger revenue
Cargo
Contract services and other revenue

1,470
769
278
3,942
449
445
Operating Expenditure
Labour
Fuel
Maintenance
Aircraft operations
Passenger services
Sales and marketing
Foreign exchange (losses)/gains
Other expenses
2,517
(830)
(311)
(254)
(350)
(84)
(73)
(29)
(247)
4,836
(1,197 )
(1,022)
(4 41)
(575)
(258)
(253)
18
(324)
(2,178) (4,052)
Operating Earnings (excluding items below)
Depreciation and amortisation
Net finance costs
Share of earnings of associates (net of taxation)
339
(716)
(82)
19
784
(841)
(69)
39
Loss Before Other Significant Items and Taxation
Other significant items
(440)
29
(87)
(541)
Loss Before Taxation
Taxation credit
(411)
122
(628)
174
Net Loss Attributable to Shareholders of Parent Company(289) (454)
Net tangible assets per share (cents) 82 101
Cash Flows
12 MONTHS TO
30 JUNE 2021
$M
12 MONTHS TO
30 JUNE 2020
$M
Cash inflows from operating activities
Cash outflows from operating activities
2,517
(2,194)
4,74 0
(4,510)
Net cash flow from operating activities
Net cash flow from investing activities
Net cash flow from financing activities
323
(182)
(313)
230
(542)
(305)
Decrease in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
(172)
438
(617)
1,055
Cash and Cash Equivalents at the End of the Year 266 438
FINANCIAL SUMMARY

22
Financial Position
A S AT
30 JUNE 2021
$M
30 JUNE 2020
$M
Bank and short-term deposits
Trade and other receivables
Inventories
Derivative financial assets
Income taxation
Other assets
266
252
92
79
-
137
438
305
106
38
3
119
Total Current Assets826 1,009
Trade and other receivables
Property, plant and equipment
Right of use assets
Intangible assets
Investments in other entities
Other assets
92
3,128
1,989
179
138
342
142
3,336
2,357
186
162
351
Total Non-Current Assets 5,868 6,534
Total Assets 6,694 7, 5 4 3
Trade and other payables
Revenue in advance
Interest-bearing liabilities
Lease liabilities
Derivative financial liabilities
Provisions
Other liabilities
524
689
524
383
11
58
164

322
828
160
353
116
104
219
Total Current Liabilities 2,353 2,102
Revenue in advance
Interest-bearing liabilities
Lease liabilities
Provisions
Other liabilities
Deferred taxation
503
1,023
1,378
241
30
61
491
1,303
1,885
295
32
117
Total Non-Current Liabilities 3,236 4,123
Total Liabilities 5,589 6,225
Net Assets 1,105 1,318

Share capital
Reserves
2,213
(1,108)
2,209
(891)
Total Equity 1,105 1,318
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 26 August 2021, 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 30, PwC Tower
15 Customs Street West, Auckland 1010
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 2021
FINANCIAL POSITION

23FINANCIAL POSITION
AIR NEW ZEALAND GROUP
David – Sustainability Consultant
Eden – Executive Assistant

You fly for a hug
We fly for you

---

2021
ANNUAL
FINANCIAL
R E S U LT S

AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2021

AIR NEW ZEALAND GROUP
1
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 2021.
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 2021 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
26 August 2021
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 14
7. Trade and Other Receivables 15
8. Inventories 15
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 27
18. Other Liabilities 28
19. Distributions to Owners 28
20. Share Capital 29
21. Reserves 31
22. Commitments 32
23. Contingent Liabilities 32
24. Financial Risk Management 33
25. Offsetting Financial Assets and Financial Liabilities 41
26. Related Parties 42
Independent Auditor’s Report 44
Five Year Statistical Review 50
Corporate Governance Statement 55
Climate-Related Disclosures 64
Directors’ Profiles 69
Interests Register 71
Directors’ Interests in Air New Zealand Securities 72
Indemnities and Insurance 72
Employee Remuneration 73
Subsidiary and Joint Venture Companies 77
Other Disclosures 78
Operating Fleet Statistics 79
Securities Statistics 80
General Information 82
Shareholder Directory 83
AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2021
* This document, in conjunction with the Air New Zealand Annual Shareholder Review 2021,
constitutes the 2021 Annual Report to shareholders of Air New Zealand Limited.

The accompanying accounting policies and notes form part of these financial statements.2
AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2021
STATEMENT OF FINANCIAL PERFORMANCE
FOR THE YEAR TO 30 JUNE 2021
NOTES

2021
$M

2020
$M
Operating Revenue
Passenger revenue
Cargo
Contract services
Other revenue

1,470
769
161
117

3,942
449
216
229
Operating Expenditure
Labour
Fuel
Maintenance
Aircraft operations
Passenger services
Sales and marketing
Foreign exchange (losses)/gains
Other expenses
1 2,517
(830)
(311)
(254)
(350)
(84)
(73)
(29)
(247)
4,836
(1,197 )
(1,022)
(4 41)
(575)
(258)
(253)
18
(324)
2(2,178) (4,052)
Operating Earnings (excluding items below)
Depreciation and amortisation
339
(716)
784
(841)
Loss Before Finance Costs, Associates, Other Significant Items and Taxation
Finance income
Finance costs
Share of earnings of associates (net of taxation)13
(377)
8
(90)
19
(57)
34
(103)
39
Loss Before Other Significant Items and Taxation
Other significant items3
(440)
29
(87)
(541)
Loss Before Taxation
Taxation credit4
(411)
122
(628)
174
Net Loss Attributable to Shareholders of Parent Company(289) (454)
Per Share Information:
Basic and diluted earnings per share (cents)
Net tangible assets per share (cents)
5(25.7 )
82
(40.4)
101

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 2021
NOTE

2021
$M

2020
$M
Net Loss for the Year
Other Comprehensive Income:
Items that will not be reclassified to profit or loss:
Actuarial gains on defined benefit plans
Taxation on above reserve movements4
(289)
6
(2)
(454)
6
(2)
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 from cash flow hedge reserve
Net translation loss on investment in foreign operations
Changes in cost of hedging reserve
Taxation on above reserve movements
4
64
35
(3)
4
(32)
4
(249)
112
-
9
37
Total items that may be reclassified subsequently to profit or loss68(91)
Total Other Comprehensive Income/(Loss) for the Year, Net of Taxation72(87)
Total Comprehensive Loss for the Year, Attributable to Shareholders of the Parent Company(217)(541)

The accompanying accounting policies and notes form part of these financial statements.4
AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2021
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR TO 30 JUNE 2021
NOTES
SHARE
CAPITAL
$M
HEDGE
RESERVES
$M
FOREIGN
CURRENCY
TRANSLATION
RESERVE
$M
GENERAL
RESERVES
$M
TOTAL
EQUITY
$M
Balance as at 1 July 20202,209(123)(11)(757)1,318
Net loss for the year
Other comprehensive income for the year
-
-
-
74
-
(6)
(289)
4
(289)
72
Total Comprehensive Loss for the Year - 74 (6) (285) (217)
Transactions with Owners:
Equity-settled share-based payments (net of taxation)4, 20 4 - - - 4
Total Transactions with Owners4 - - -4
Balance as at 30 June 2021 2,213 (49) (17) (1,042) 1,105
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)(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

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

2021
$M

2020
$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

266
252
92
79
-
137

438
305
106
38
3
119
Total Current Assets 826 1,009
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

92
3,128
1,989
179
138
342
142
3,336
2,357
186
162
351
Total Non-Current Assets 5,868 6,534
Total Assets 6,694 7, 5 4 3
Current Liabilities
Trade and other payables
Revenue in advance
Interest-bearing liabilities
Lease liabilities
Derivative financial liabilities
Provisions
Other liabilities
14
15
16
24
17
18
524
689
524
383
11
58
164
322
828
160
353
116
104
219
Total Current Liabilities 2,353 2,102
Non-Current Liabilities
Revenue in advance
Interest-bearing liabilities
Lease liabilities
Provisions
Other liabilities
Deferred taxation
14
15
16
17
18
4

503
1,023
1,378
241
30
61
491
1,303
1,885
295
32
117
Total Non-Current Liabilities 3,236 4,123
Total Liabilities 5,589 6,225
Net Assets 1,105 1,318
Equity
Share capital
Reserves
20
21
2,213
(1,108)
2,209
(891)
Total Equity 1,105 1,318

Dame Therese Walsh
Chairman
For and on behalf of the Board, 26 August 2021
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2021
Jan Dawson
Deputy Chairman

The accompanying accounting policies and notes form part of these financial statements.6
AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2021
NOTES

2021
$M

2020
$M
Cash Flows from Operating Activities
Receipts from customers
Payments to suppliers and employees
Income tax refunded
Interest paid
Interest received

2,471
(2,111)
35
(83)
11

4,660
(4,418)
40
(92)
40
Net Cash Flow from Operating Activities6323230
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 receipts/(payments)
Investment in associate
26
26
10
-
38
(231)
9
(8)
67
42
35
(615)
(66)
(5)
Net Cash Flow from Investing Activities(182)(542)
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
380
-
(184)
-
(178)
(331)
-
45
225
74
(15)
(154)
(350)
(130)
Net Cash Flow from Financing Activities(313)(305)
Decrease in Cash and Cash Equivalents
Cash and cash equivalents at the beginning of the year
(172)
438
(617)
1,055
Cash and Cash Equivalents at the End of the Year6266438
*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 2021

7
STATEMENT OF ACCOUNTING POLICIES
FOR THE YEAR TO 30 JUNE 2021
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 26 August 2021.
Impact of Covid-19
The Group has significantly reduced its network as demand declined following border closures and international travel restrictions
arising from the Covid-19 pandemic. In response to the impact, the Group took a number of immediate actions including a reduction
in flight capacity, labour reductions, capital expenditure deferrals, cost reductions and modifications to various vendor and supplier
agreements. In addition, the Group was awarded grants for providing international airfreight services, applied for and received wage
subsidies and a grant under an aviation support package which provided temporary relief from passenger based government charges
and airways related fees.
The Group responded quickly to preserve liquidity, cancelled the 2020 interim dividend distribution and all non-essential spend and
deferred capital expenditure. The Group applied for Covid-19 related tax relief by electing to carry back the 2020 financial year income
tax loss and 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 January 2022 to March 2022.
A standby Government loan facility was secured to support the future business operations. The facility has a drawdown limit of $1.5
billion and a term through to 27 September 2023. As at 30 June 2021, the Group had drawn down $350 million of the facility (30 June
2020: Nil).
Capital structure
Given the severity of the impact of Covid-19 on the business, the Board is well advanced in considering the future capital structure of the
Group and intends to complete a fully underwritten equity raise in the first quarter of the 2022 calendar year. In conjunction, the Board
is considering further debt funding, which will be reviewed in the context of the Group’s targeted gearing and debt coverage ratios.
The Group’s capital structure is managed in the light of economic conditions, future capital expenditure profiles and the risk
characteristics of the underlying assets. The Group monitors capital on the basis of gearing and debt coverage ratios. The gearing
ratios are calculated as net debt over net debt plus equity. The Group targets a minimum liquidity level, ensuring long-term
commitments are managed with respect to forecast available cash inflow and managing maturity profiles.
Forecast liquidity
Detailed cash flow projections have been developed (refer Note 10) which incorporate the Board’s and management’s current view
of the anticipated recovery timeframe from the Covid-19 pandemic and includes an assumption around a planned equity raise and
additional debt financing. Given the uncertainty in predicting the timeframes over which travel restrictions may be lifted and border
reopenings may occur, the potential for future waves of the pandemic and the severity of the economic impact, the Group is not able
to provide certainty that there may not be more severe downsides than those already considered. While such severe scenarios are
not considered likely, in the event a more material adverse scenario occurs, the Group would consider a number of other actions that
could be taken.
As a result of the critical role the Group has in New Zealand’s economy and society, the Crown has confirmed its longstanding commitment
to maintaining a majority shareholding in Air New Zealand. Subject to Cabinet being satisfied with the terms of Air New Zealand’s proposed
equity capital raise, it would participate in the planned equity capital raise in order to maintain a majority shareholding.
Given the standby Government loan facility, the intention to complete an equity capital raise in the first quarter of the 2022 calendar
year, the continued support from the Crown regarding those plans and the accessibility of additional debt funding, the Board has
a reasonable expectation that the Group has sufficient liquidity to continue to operate for the foreseeable future. Therefore, the
adoption of the going concern basis for the financial statements is considered appropriate.
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 functional currency.

8
STATEMENT OF ACCOUNTING POLICIES CONTINUED
FOR THE YEAR TO 30 JUNE 2021
AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2021
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 below.
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.
Interest Rate Benchmark Reform - Phase 2 (Amendments to NZ IFRS 9, NZ IAS 39, NZ IFRS 7, NZ IFRS 4 and NZ IFRS 16) has not been
adopted early. The amendments provide temporary relief from accounting for changes in the basis for determining contractual cash
flows as a result of the IBOR reform and from applying specific NZ IFRS 9 hedge accounting requirements to hedge relationships
directly affected by IBOR reform. The Group has initiated a plan to manage the transition to alternative interest rate benchmarks. The
amendments, which become effective for annual periods commencing on or after 1 January 2021, are not expected to have a significant
impact on the financial statements.
In April 2021, the International Financial Reporting Interpretations Committee (“IFRIC”) issued an agenda decision on Configuration or
Customisation Costs in a Cloud Computing Arrangement (IAS 38). This Interpretation clarifies the accounting treatment in respect of costs
of configuring or customising a supplier’s application software in a Software as a Service (“SaaS”) arrangement. Whilst such costs may
be able to continue to be capitalised in limited circumstances, in many cases the costs will now need to be recognised as an operating
expense. Interpretations issued by IFRIC are required to be implemented within a reasonable timeframe from the date of their issuance.
The Group has commenced a project to identify any such costs, but is not yet able to quantify the impact. It is expected that the Group will
first apply the Interpretation, retrospectively, in the interim financial statements for the six months ending 31 December 2021.
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.

9
STATEMENT OF ACCOUNTING POLICIES CONTINUED
FOR THE YEAR TO 30 JUNE 2021
AIR NEW ZEALAND GROUP
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.
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.

10
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR TO 30 JUNE 2021
AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2021
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.
Finance income
Interest revenue from investments and fixed deposits is recognised as it accrues, using the effective interest method
where appropriate.
Cargo revenue – Government grants and assistance
2021
$M
2020
$M
Cargo government grants and assistance:
- New Zealand
- Other regions

321
12

21
-
Total cargo grants and assistance 33321
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 from 30 April 2020 through to 31 October 2021. The awards were
negotiated on an arm’s length basis using standard commercial terms. During the year ended 30 June 2021 an amount of $321 million was
recognised in the Statement of Financial Performance within Cargo revenue (30 June 2020: $21 million). Conditions attached to the grant
which has been recognised in the Statement of Financial Performance have been satisfied as at balance date.
The Group was awarded from August 2020 contracts to provide international freight services on certain ports from Australia to the United
States under the Australian Government International Freight Assistance Mechanism (IFAM). IFAM was intended to restore critical supply
chains due to the impact of the global pandemic. During the year the Group recognised Cargo revenue in relation to IFAM of $12 million
(30 June 2020: Nil).

11
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR TO 30 JUNE 2021
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.
2021
$M
2020
$M
Analysis of revenue by geographical region of original sale
New Zealand
Australia and Pacific Islands
United Kingdom and Europe
Asia
America
2,033
153
13
150
168
2,894
532
233
446
731
Total operating revenue2,5174,836
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:
2021
$M
2020
$M
Superannuation expense
Audit and review of financial statements*
41
1
56
1
* In addition to fees paid for the audit and review of the financial statements of $1,225k (30 June 2020: $1,170k), other fees were paid
for assurance engagements including the student fee protection audit of $5k (30 June 2020: $5k) and the US Passenger Facility
Charge audit of $22k (30 June 2020: $22k). Non-assurance fees were paid for tax compliance work undertaken for the Corporate
Taxpayers Group of $17k (30 June 2020: $17k). The prior financial year also included assurance fees for a Singapore branch audit file
review of $4k and a Greenhouse Gas inventory review of $20k and non-assurance fees for sustainability reporting of $15k.
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.
2021
$M
2020
$M
Government grants and subsidies recognised in the Statement of Financial Performance include:
Wage subsidies (recognised within ‘Labour’)
- New Zealand
- Other regions

52
4

75
-
Total wage subsidies
Aviation support grant (recognised within ‘Passenger services’)
Aviation support grant (recognised within ‘Aircraft operations’)
Aviation support grant (recognised within ‘Other expenses’)
56
18
40
1
75
6
17
4
Total aviation support grant 59 27
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 periods where there were alert level restrictions and businesses could
demonstrate a decline in revenues as a result of the pandemic. Additional subsidies were received from other governments related
to offshore offices including Australia, the United States of America, Singapore and the Cook Islands. The wage subsidies were
recognised within Labour expenses as an offset to the underlying labour cost. Conditions attached to the government subsidies
which have been recognised in the Statement of Financial Performance have been satisfied.
The New Zealand Government through the Ministry of Transport provided 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 covered the period from 1 March 2020 through to 31 December 2020. All conditions associated with the government
assistance have been satisfied.

12
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR TO 30 JUNE 2021
AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2021
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.
2021
$M
2020
$M
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:
- fuel
- foreign exchange
Foreign exchange losses on debt and leases, no longer offset by foreign exchange gains on the hedged
item, following disestablishment of fair value hedges
Aircraft impairment and lease modifications
Reorganisation costs
Gain on sale of landing slots
143

-
(18)
-
(78)
(39)
21
67
(122)
17
(46)
(338)
(140)
21
29(541)
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 the prior year
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.
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, affecting revenues, operating
expenditure and fuel consumption. 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 the Statement of Financial Performance.
In the 2020 financial year, 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. A number of fuel trades de-designated from hedge
relationships remained open as at 30 June 2020. 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 losses on debt and leases, no longer offset by foreign exchange gains on the hedged item following
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 permitted certain fair value hedges of underlying United States Dollar aircraft values which
were previously undertaken by the Group. The interpretation was applied retrospectively in the prior year financial statements.
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. In September 2019 the
debt was subsequently re-designated in new hedge relationships in accordance with the Group’s financial risk management policies.
Aircraft impairment and lease modifications
As a result of Covid-19 the Group significantly reduced its network capacity following 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 and one Boeing 777-300ER leased aircraft were grounded for an indefinite period into the future (30 June 2020: Boeing 777-
200ER fleet). 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 expenses of $58 million (30 June 2020: $338 million) and losses arising on lease modifications of $5 million (30 June
2020: Nil) were recognised in respect of these aircraft for the year ended 30 June 2021. Further details are set out in Notes 10 and 11.
The Group exited from service the ATR72-500 fleet in February 2020 following a scheduled fleet replacement. The aircraft were
classified as assets held for resale and were carried at the lower of their previous book value at the date of transfer or fair value less
costs to sell. An impairment expense of $15 million was recognised during the year ended 30 June 2021 (30 June 2020: Nil).
Reorganisation costs
Due to the unprecedented impact of Covid-19 on the airline a reorganisation programme was undertaken to realign the cost base.
This resulted in a reduction in employee numbers since April 2020 of over 4,000 staff.
In March 2019, Air New Zealand announced a two-year cost reduction programme. Reorganisation costs, comprising of redundancy
and other related costs, were recognised during the year ending 30 June 2020 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 the comparative period 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 the announced withdrawal from the London-
Los Angeles route. Proceeds from the sale of $42 million were received in December 2019. The gain on sale was recognised upon
formal transfer of each of the slots to the purchaser.

13
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR TO AND AS AT 30 JUNE 2021
AIR NEW ZEALAND GROUP
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.
2021
$M
2020
$M
Current taxation credit
Current year 33 57

Deferred taxation credit
Origination of temporary differences
Unused tax losses
33
(25)
114
57
56
61
89117
Total taxation credit recognised in earnings 122174

Reconciliation of effective tax rate
Loss before taxation (411) (628)
Taxation at 28%
Adjustments
Non-deductible expenses
Non-taxable income
Equity settlements
Over provided in prior periods
Reinstatement of tax depreciation on buildings
Foreign tax paid
115
(1)
6
(1)
-
3
-
176
(7)
6
(1)
1
3
(4)
Taxation credit 122174
The Group has $39 million of imputation credits as at 30 June 2021 (30 June 2020: $79 million).
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
EQUITY
SETTLEMENTS
$M
UNUSED
TA X LO S S E S
$M
TOTAL
$M
As at 1 July 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 7 289(66) (51) (1)-(61)117
Amounts recognised in Other
Comprehensive Income
Amounts recognised in earnings
-
(8)
-
29
-
7
31
-
2
(1)
-
(2)
-
(114)
33
(89)
As at 30 June 2021 (1)318(59)(20)-(2)(175)61
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.

14
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR TO AND AS AT 30 JUNE 2021
AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2021
5. Earnings Per Share
Basic earnings per share is calculated by dividing the profit/(loss) 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.
2021
$M
2020
$M
Earnings for the purpose of basic and diluted earnings per share:
Net loss attributable to shareholders(289) (454)

Weighted average number of shares (in millions of shares)
Weighted average number of Ordinary Shares for basic and diluted earnings per share 1,123 1,123

Basic and diluted earnings per share (25.7 ) (40.4)
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:
2021
$M
2020
$M
Cash balances
Other short-term deposits and short-term bills
44
222
130
308
Total cash and cash equivalents 266438

Reconciliation of Net Loss Attributable to Shareholders to Net Cash Flows from Operating Activities:
Net loss 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 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
(289)
716
12
73
(19)
(21)
-
(143)

18
3
6
(454)
841
-
335
(39)
4
46
(67)

40
2
12

Net working capital movements:
Assets
Revenue in advance
Liabilities
356
98
(127)
(4)
720
67
(253)
(304)
(33) (490)
Net cash flow from operating activities 323 230