Air NZ updates on impact of Domestic lockdown and Tasman

Stock exchange listings: New Zealand (NZX: AIR) / Australia (ASX: AIZ) / ADR (OTC: ANZLY)

MARKET ANNOUNCEMENT
Air New Zealand postal address: Private Bag 92007, Auckland, 1142, New Zealand
Investor Relations email: investor@airnz.co.nz
Investor website: www.airnewzealand.co.nz/investor

17 September 2021

Air New Zealand updates on impact of Domestic lockdown and trans-Tasman suspension
Air New Zealand is providing an update on the impact of the New Zealand national lockdown and of the
ongoing suspension of trans-Tasman Quarantine Free Travel (QFT) on the Company’s short term financial
performance, as well as an update on liquidity.
As previously advised, earnings guidance was suspended on 26 August 2021 due to the uncertainty
associated with the introduction of a nationwide Alert Level 4 in New Zealand and the duration of the
suspension of trans-Tasman QFT. Following a month of constrained trading it remains unclear how long
these Alert Levels, the suspension of trans-Tasman QFT and associated travel restrictions will continue, as
well as how demand will recover when the restrictions are lifted. However, for so long as these travel
restrictions remain in place, the estimated impact on the company’s financial performance is as follows:
• Monthly impact of nationwide New Zealand Level 3 or 4 travel restrictions is approximately $45 million
to $55 million, including the benefit of any wage subsidies received;
• Monthly impact of an Auckland-only Level 3 or 4 travel restriction, with the rest of New Zealand
operating at Level 1 or 2 is approximately $25 million to $35 million, including the benefit of any wage
subsidy; and
• Monthly impact of suspension of New Zealand to Australia travel is approximately $20 to $25 million.
Operation of cargo flights is continuing with approximately 50 flights per week and the Company is observing
strong demand for air travel across regions in New Zealand that are currently under Level 2 restrictions.
As advised at the Company’s Annual Results on 26 August, the reduction in operating cash flow, together
with planned cash payments relating to aircraft in coming months, means the Company has begun to draw
down further on the Crown standby loan facility (“the Facility”). The Company has recently requested
additional drawdowns on the Facility which, including those drawings, will total $435 million. Remaining
available funds under the Facility are $1.065 billion.
Earn ings and cash flow guidance remain suspended.
Ends.


Investor Relations enquiries:
Leila Peters
General Manager, Corporate Finance
leila.peters@airnz.co.nz
+64 21 743 057