Air New Zealand Investor Update (Op Stats) – February 2022

1

Contents
• February 2022 traffic highlights
• Operating statistics table
• Recent market announcements and media releases


February 2022 highlights



















Group traffic summary
20222021
% *20222021
% *
Passengers carried (000)481624(23.0%)4,3025,211(17.5%)
Revenue Passenger Kilometres(m)
358379(5.7%)2,9393,435(14.4%)
Available Seat Kilometres (m)80167418.8%5,3206,309(15.7%)
Passenger Load Factor (%)44.7%56.3%(11.6 pts)55.2%54.4%0.8 pts
Year-to-date RASK
1
Group(9.5%)(9.3%)
Short Haul(13.5%)(13.5%)
Long Haul(17.4%)(15.7%)
February
% change in reported RASK
(incl. FX)
% change in underlying RASK
(excl. FX)
FINANCIAL YTD
* % change is based on numbers prior to rounding.
Please note that the available seat kilometre (capacity) numbers included in the tables within this disclosure do not include any cargo-only flights.
This is because these capacity numbers are used to calculate passenger load factors and passenger RASK
1
Reported RASK (unit passenger revenue per available seat kilometre) is inclusive of foreign currency impact, and underlying
RASK excludes foreign currency impact.
25 March 2022

2

Operating statistics table




GroupFEBRUARYFINANCIAL YTD
20222021% *20222021% *
Passengers carried (000)481624(23.0%)4,3025,211(17.5%)
Revenue Passenger Kilometres(m)358379(5.7%)2,9393,435(14.4%)
Available Seat Kilometres (m)80167418.8%5,3206,309(15.7%)
Passenger Load Factor (%)44.7%56.3%(11.6 pts)55.2%54.4%0.8 pts
Short Haul T otalFEBRUARYFINANCIAL YTD
20222021% *20222021% *
Passengers carried (000)474620(23.5%)4,2635,156(17.3%)
Revenue Passenger Kilometres(m)292338(13.4%)2,5512,899(12.0%)
Available Seat Kilometres (m)57451212.2%4,0004,377(8.6%)
Passenger Load Factor (%)50.9%66.0%(15.1 pts)63.8%66.2%(2.4 pts)
DomesticFEBRUARYFINANCIAL YTD
20222021% *20222021% *
Passengers carried (000)453608(25.4%)4,0835,042(19.0%)
Revenue Passenger Kilometres(m)236310(24.0%)2,0402,644(22.8%)
Available Seat Kilometres (m)405436(7.1%)2,9403,481(15.5%)
Passenger Load Factor (%)58.3%71.2%(12.9 pts)69.4%75.9%(6.5 pts)
Tasman / PacificFEBRUARYFINANCIAL YTD
20222021% *20222021% *
Passengers carried (000)211272.0%18011457.9%
Revenue Passenger Kilometres(m)5728104.3%51125699.6%
Available Seat Kilometres (m)17076122.0%1,06089618.3%
Passenger Load Factor (%)33.4%36.3%(2.9 pts)48.2%28.6%19.6 pts
Long Haul T otalFEBRUARYFINANCIAL YTD
20222021% *20222021% *
Passengers carried (000)6455.9%3854(29.2%)
Revenue Passenger Kilometres(m)654157.6%388535(27.6%)
Available Seat Kilometres (m)22716239.7%1,3201,932(31.7%)
Passenger Load Factor (%)28.8%25.6%3.2 pts29.4%27.7%1.7 pts
AsiaFEBRUARYFINANCIAL YTD
20222021% *20222021% *
Passengers carried (000)2150.3%1126(56.3%)
Revenue Passenger Kilometres(m)211451.4%105242(56.6%)
Available Seat Kilometres (m)96116(17.4%)6781,095(38.1%)
Passenger Load Factor (%)21.5%11.7%9.8 pts15.5%22.1%(6.6 pts)
AmericasFEBRUARYFINANCIAL YTD
20222021% *20222021% *
Passengers carried (000)4359.0%2728(3.7%)
Revenue Passenger Kilometres(m)452860.6%283293(3.6%)
Available Seat Kilometres (m)13146182.6%642837(23.4%)
Passenger Load Factor (%)34.2%60.1%(25.9 pts)44.1%35.0%9.1 pts
* % change is based on numbers prior to rounding
Air New Zealand operates primarily in one segment, its primary business being the transportation of passengers and cargo on an integrated network of
scheduled airline services to, from and within New Zealand. The following operational data and statistics is additional supplementary information only.

3

Market Announcements
(during the period 24 February 2022 to 24 March 2022)
Air New Zealand 2022 Interim Results 24 February 2022
Air New Zealand announces interim loss and updates outlook for the full year as preparations continue for
‘revive’
Interim results summary
• A statutory loss before taxation of $376 million for the six-month period ending 31 December 2021
• Operating revenue 9 percent lower than the prior period, driven by a 26 percent decline in passenger
revenue due to the national alert level restrictions and 107-day Auckland lockdown
• Cargo revenue increased 29 percent on the same period last year to $482 million, supported by
Government freight support schemes
• Fuel costs increased 14% to $174 million for the half year, with the increasing cost of fuel expected to
impact the second half
• Drawings under Crown Standby Loan Facility (the Crown Facility) are $760 million as at 23 February 2022
• Liquidity of $1.4 billion as at 23 February 2022, made up of approximately $170 million of cash and $1.24
billion of available funds under the remaining Crown Facility and Redeemable Shares
• Steps to recapitalise the balance sheet are underway including an equity capital raise that is intended to
be launched by the end of March 2022 or shortly thereafter, subject to market conditions
• Dividends remain suspended
• Current expectation for the full 2022 financial year is a loss before taxation and other significant items that
will exceed $800 million
Air New Zealand reported a statutory loss before taxation of $376 million which includes a $9 million loss
from other significant items (aircraft impairment and foreign exchange losses on uncovered debt) for the six-
month period ended 31 December 2021. The result reflects the substantial impact the Covid-19 pandemic
continues to have on the airline. This compares to a statutory loss before taxation of $105 million for the
same period last year.
Continued restrictions on international travel, the national lockdown which commenced in August 2021 and
the extended period of travel restrictions for the Auckland region saw the airline’s operating revenue decline
9 percent to $1.1 billion in the period. Passenger flying was down 26 percent from the corresponding period
in financial year 2021 and was down 84 percent compared to pre-Covid levels.
Chief Executive Officer Greg Foran says limited international travel on top of local lockdowns in the first half
of the financial year had a huge impact on this interim result.
“The airline has typically derived two-thirds of its revenue from its international passenger network and
much of that was effectively grounded for the majority of the first half.”
Compared to 2020 and 2021 which saw shorter, sporadic lockdowns, the longer lockdown and Auckland
border restrictions contributed to the loss in the first half and an extremely challenging time for the airline’s
8,400 employees.
“I couldn’t be prouder of our Air New Zealand whānau for what they’ve achieved this year so far. Everything
from adding flights so Northland could remain connected to the rest of the country while the Auckland
border was in place, to the digital solution for our customers to seamlessly upload their vaccine pass to their
Air New Zealand app. The restart of the domestic network in December in time for the holidays went like
clockwork, as did the reopening of the Cook Islands bubble in January.”

4

Despite the remaining uncertainty around future travel demand and ongoing impacts on financial
performance, Mr Foran can see light ahead for the airline.
“Looking at what is happening around the world and at home, we can see the path back to the Revive
phase of our Survive, Revive, Thrive plan. We have the right strategy, the right people and we are ready to
fly. We’re excited about welcoming Kiwis home in the coming days and months and international travellers
back to Aotearoa later in the year.”
“We’re bringing back approximately 250 cabin crew and pilots and have reanimated one of our Boeing 777-
300s to do some of the cargo heavy lifting. Looking further out to the end of this calendar year, we will be
ramping up more passenger flights to North America and looking forward to starting up our direct service to
New York City.”
“As we continue operating through Covid, we know safety and wellbeing is even more important to our
customers. There are a number of actions we have taken in this area, including vaccine requirements for
international and domestic travel, and continuously updating our procedures to keep people safe onboard,”
says Mr Foran.
Air New Zealand was recently named the world's safest airline by the Australian rating service
AirlineRatings.com, highlighting the airline’s laser-focus on safety and Mr Foran says there’s more work
going on in the airline to make sure we continue to take care further than any other airline.
“When we get back to international passenger flying we’ll be making sure our customers get the very best of
our uniquely Kiwi hospitality.”
“Looking to a sustainable future, we’ve made progress towards our aim of being carbon neutral by 2050.
We signed an agreement with the Ministry of Business, Innovation & Employment to conduct a feasibility
study into a local supply of sustainable aviation fuel and have a Memorandum of Understanding in place
with Airbus to explore the use of hydrogen aircraft in New Zealand.”
Chair Dame Therese Walsh noted that while optimism for the future is well-founded, the 2022 financial year
is the most difficult one yet for the airline.
“It would be easy to think the first year of the pandemic had the biggest impact on Air New Zealand’s
finances. However, only the final quarter of the 2020 financial year was impacted, and in the 2021 financial
year the airline was able to access relief support from the Government through various subsidies, PAYE
deferrals and cargo support schemes. The domestic network largely kept flying across the 2021 financial
year and the trans-Tasman and Cook Islands bubbles gave a real boost to the second half of 2021. The
2022 financial year has and will continue to be much more heavily impacted, both by continued suppressed
demand and rising costs,” says Dame Therese.
“As we’ve all seen at the petrol pumps, the cost of fuel has been significantly increasing – and although we
have hedging strategies in place, we expect to see these rising costs start to come through in the second
half and beyond.”
A bright spot was the cargo business, which continued to perform strongly, with the extension of the
Government’s Maintaining International Air Connectivity (MIAC) scheme and the Australian Government’s
International Freight Assistance Mechanism (IFAM) scheme.
“Our cargo operation has been outstanding throughout the pandemic and continues to play an essential role
in connecting New Zealand to the world. Cargo revenue increased by 29 percent to $482 million for this first
half compared to the same period in 2021,” notes Dame Therese.

5

“Despite the financial result, we remain encouraged about the future of air travel. Kiwis love to travel, and as
seeing their own country is the only option for the moment, they have been making the most of it over this
summer, supporting the local economy and our tourism industry. We had more than 24,000 flights moving
1.3 million customers around New Zealand in December and January.”
“I’m confident in the continued resilience and agility of the business to respond to the challenges ahead. We
have an exceptional executive team led by Greg Foran, a focused strategy to keep the airline heading in the
right direction, and we are making sound investments in our people, customer experience and infrastructure
for the future.”
“I want to thank our customers for their continued support and patience as we’ve had to swiftly adapt our
schedules and services in response to the constantly changing environment. We’re looking forward to
playing our part in those long-awaited reunions as more Kiwis head back home on our international
services”.
Financial information:
Outlook for 2022
There remains a large degree of uncertainty on the impact of the Omicron variant on demand for domestic
travel for the remainder of the financial year.
Additionally, while recent clarity on the phasing of border openings for New Zealand is helpful, the timing of
reduced or removed self-isolation restrictions remains unclear, driving continued uncertainty in the level of
demand for international air travel. Self-isolation restrictions are expected to continue to have a substantial
adverse impact on international demand in the second half of 2022 financial year, and for as long as those
restrictions exist.
Air New Zealand’s current expectations are that the 2022 financial year will incur a loss before taxation and
other significant items that exceeds $800 million.
Liquidity and cash burn update – Dividend remains suspended
In mid-December we announced a revised Crown support package, comprising of a further $500 million of
additional liquidity. Total support from the Crown is now $2 billion, consisting of $1 billion of the Crown
Facility and $1 billion of non-voting redeemable shares.
As at 23 February 2022, the airline has available liquidity of $1.4 billion, consisting of cash of approximately
$170 million, $240 million of available funds on the Crown Facility and $1.0 billion of redeemable shares.
The total amount drawn on the Crown Facility as at 31 December 2021 was $545 million and as at 23
February was $760 million.
Based on the current demand profile and noting the last of three PAYE repayments to the Crown of
approximately $100 million due in March, the airline expects it will begin issuing redeemable shares in
March 2022. The redeemable shares become available, and will be accessed incrementally, once $850
million has been drawn under the Crown Facility.
Due to the ongoing financial impact from Covid-19, and the restrictions of the Crown Facility, dividends
remain suspended. Accordingly, there will be no interim dividend for the 2022 financial year.
Capital structure update
Air New Zealand continues to actively engage with the Crown as it assesses its longer-term capital structure
and funding needs. This includes the revised Crown support package comprising a further $500 million of
additional liquidity that was announced in December. This better positions the airline during the period up to
its recapitalisation including an ordinary equity raising. The revised package has increased the overall
liquidity support to $2 billion.

6

Air New Zealand intends to launch an equity capital raise before the end of March 2022 or shortly
thereafter, subject to market conditions. Given the critical role the company has in New Zealand’s economy
and society, the Crown is supportive of this intention and has confirmed its longstanding commitment to
maintaining a majority shareholding and, subject to Cabinet being satisfied with the terms of Air New
Zealand’s proposed equity capital raise, it would participate in the equity capital raise in order to maintain a
majority shareholding in Air New Zealand.
The airline would like to thank its shareholders again for their continued support and patience

Media Releases
(during the period 24 February 2022 to 24 March 2022)

Start spreading the news – Air New Zealand is off to the Big Apple 23 March 2022

Getting to New York just got easier. Air New Zealand has announced its first flight to the Big Apple will be
on 17 September this year.

Landing at John F. Kennedy Airport, the airline will operate its flagship Auckland-New York route three
times a week, year-round with its Boeing 787-9 Dreamliner aircraft. The new service further deepens the
alliance between Air New Zealand and United Airlines.

Air New Zealand Chief Executive Officer Greg Foran says with international flying on hiatus for two years
and the New Zealand border reopening on 2 May to visa-waiver countries, this is the moment Kiwis have
been waiting for.

“New York is an iconic yet familiar city, a bucket list item. And now for the first time, Kiwis can visit the city of
all cities with a non-stop flight. New Zealand lets you slow down – in New York, everything is bigger and
faster, it’s exciting and awe inspiring – and it’s now closer than ever.”

“The US has always been a key market for us, and this new route cements our commitment to developing
growing tourism opportunities between the two countries. In the six years leading up to Covid, the US visitor
numbers to New Zealand doubled and looking at the average spend in New Zealand by US tourists, we
estimate that this new route would contribute an additional $65M per year into the local economy.

“Traditionally, flight numbers 1 and 2 are used for an airline’s flagship route. And that’s what New York will
be – our flagship route.”

Departing Auckland at 7:40pm, customers will enjoy Air New Zealand’s award-winning cabin experience,
and literally wake up in the city that never sleeps.

“We’ve worked incredibly hard over the last few years to make this ultra-long-haul service a reality – it’s one
of the longest routes in the world, at just over 16 hours northbound and 17 and a half hours southbound. To
ensure customers arrive in New York feeling refreshed, we’ve put a lot of thought into the onboard
experience and teams are working around the clock to make sure this a great flying experience.”

After a stopover in New York, for customers wanting to travel further afield, Air New Zealand’s strong
partnership with United Airlines can connect them on to domestic destinations across the US, Canada and
the United Kingdom. For those wanting to explore more of Europe, thanks to Air New Zealand’s network of
partnerships, customers can also fly direct from New York to Frankfurt, Munich, Zurich, Vienna, Brussels,
Helsinki, Copenhagen and Stockholm

7

The new service will also provide greater choice for travellers between New Zealand and North America,
with Air New Zealand serving seven destinations in North America – Chicago, Honolulu, Houston, Los
Angles, San Francisco, Vancouver - and soon - New York.

Tickets are now on sale at www.airnewzealand.co.nz.

Inaugural outbound flight schedule – 17 September only:

Flight No. Operated by Aircraft type Departs Arrives Frequency
NZ2 Air New Zealand Boeing 787-9
Dreamliner
Auckland
16:00
New York
16:15
Sat

Flight schedule effective 19 September:

Flight No. Operated by Aircraft type Departs Arrives Frequency
NZ2 Air New Zealand Boeing 787-9
Dreamliner
Auckland
19:40
New York
19:55
Mon, Thu, Sat
NZ1 Air New Zealand Boeing 787-9
Dreamliner
New York
21:55
Auckland
07:30 +2

Flights will arrive in to and depart from Terminal 1 at John F. Kennedy International Airport. Flights are
subject to government and regulatory requirements.



Kia ora world, New Zealand is ready to be explored! 16 March 2022

Air New Zealand is ready and waiting to reconnect friends and whānau from across the ditch from
Wednesday 13 April, and visa waiver countries from Monday 2 May.

Air New Zealand Chief Executive Officer Greg Foran says it’s the day New Zealand has been waiting for.

“It’s no secret the past two years have been extremely turbulent for people. There’s a real buzz today. New
Zealand holds a special place in many people’s hearts, whether they’re a Kiwi or visitor, touching down on
New Zealand soil will be a moment to remember.

“It’s also been incredibly hard for our tourism operators around the country. Today’s announcement will help
them get back to what they do best – welcoming international visitors to Aotearoa.

“Flights across the Tasman have been particularly popular, especially over the Easter period where we
have added over 90 flights to keep up with demand over that period.

“Pre-COVID-19, Australia was the largest tourism market for both our airline and New Zealand. We know a
lot of tourism operators have been missing international visitors so we’re looking forward to playing our role
in New Zealand’s recovery.

“On our long-haul network, we’re seeing particular interest in journeys from North America around the July
holiday period. It’s a sign that tourists still have New Zealand at the top of their bucket list.”

The airline has more than 50 flights per week on its 15 international routes and will adjust capacity to meet
demand in the coming months as New Zealand heads into the winter season.

8

With border restrictions starting to ease, the airline is also thrilled to begin to rebuild its aircrew whānau. In
the six months since October 2021, Air New Zealand has rehired around 700 flight attendants and pilots
with more opportunities on the horizon over the next six months when international passenger flying starts
to increase.

International flying checklist for customers entering New Zealand:

1) Customers will need to show their International Vaccine Certificate to board an Air New Zealand
international flight.
2) The New Zealand Government requires proof of a negative RAT, LAMP or PCR test before
departure. Check the
Covid-19 website for timeframes.
3) All passengers will be required to fill out the New Zealand Travel Declaration before departure
4) Visitors from visa-waiver countries will need to hold a NZeTA before they travel
5) Allow plenty of time (we recommend around three hours) to check in and verify all travel
documents.

International flying checklist for customers departing New Zealand:

1) Customers will need to show their International Vaccine Certificate to board an Air New Zealand
international flight.
2) Different countries have varying entry requirements (pre-departure testing and travel declarations)
so check these before getting to the airport
3) Allow plenty of time (we recommend around three hours) to check in and verify all travel
documents.

Nau mai, hoki mai Kiwi whānau 28 February 2022

After 246 days since the travel bubble paused, Air New Zealand is thrilled to be bringing New Zealand
citizens and permanent residents home from Australia to reconnect with their friends and whānau once
again.

Air New Zealand Chief Customer and Sales Officer Leanne Geraghty says “Emotions will be running high
today as New Zealand citizens and permanent residents who have been waiting to come home from Aussie
board their flight. Having the certainty they will be touching down on home soil and reuniting with friends
and whānau in just a few short hours will come as a relief.

“This day signals the first step in reconnecting New Zealand with the world. We are incredibly humbled to
play a small part in such a special day for many Kiwis and look forward to reuniting more families with
Aotearoa over the coming months.”

“We expect to have more than 300 flights available between New Zealand and Melbourne, Sydney,
Brisbane and the Gold Coast for the month of March alone. Once we have a clearer view as to the level of
demand, we will adjust the schedule accordingly, but we're confident there will be seats available.”

The airline’s international vaccination policy came into effect on 1 February with all passengers travelling on
Air New Zealand’s international network now required to show proof of full vaccination.

The easiest way for eligible customers to do this is by securely sharing their vaccination status and test
results with Air New Zealand using the IATA Travel Pass
app. The app will also guide travellers through
what they need to know and do before departure. 

“We’ve kept our operation ready for this. In the last few months, it’s been great to bring back some of our
pilots, with some cabin crew returning to training from today, as we anticipate a return to global travel. We’re
looking forward to welcoming the tens of thousands of Kiwis who will be making plans to board our aircraft
soon.”

9

Those wanting to book to travel can do so now via the Air New Zealand website where customers with
credits can also use them as a form of payment, or through their preferred travel agent.