Refuelled for recovery, Air NZ announces 2022 annual result

Media release
25 August 2022


Refuelled for recovery, Air New Zealand announces 2022
annual result

2022 Financial summary
• Loss before other significant items and taxation of $725 million
1
, compared to $444 million in
the prior year
• Statutory loss before taxation of $810 million
• Operating revenue lifts 9 percent to $2.7 billion, driven by Cargo performance
• Recapitalisation completed in May, raising $2.2 billion
• Liquidity of $2.3 billion as at 23 August

In a year of ongoing twists and turns, Air New Zealand has recapitalised its business and, in the last quarter,
experienced greater than expected demand for travel, while managing rising costs and an ongoing pandemic.

The airline has today announced a loss before other significant items and taxation of $725 million for the 2022
financial year, consistent with guidance provided to the market in June. The statutory loss before taxation was
$810 million
2
.

Although the financial year ended strongly following the phased reopening of New Zealand’s borders from
March, the airline’s operating revenue of $2.7 billion was significantly impacted by pandemic related travel
restrictions.

Cargo and domestic revenues helped lift overall revenue by 9 percent, however high fuel prices and reduced
flying over much of the year resulted in a loss for the period.

Air New Zealand Chief Executive Officer Greg Foran said the airline continued to be guided by a clear strategy,
moving deftly to address continued change by focusing on doing the right thing for its stakeholders.

“For customers, we’ve been focused on restoring services, maintaining a choice of fares and launching
innovations to improve their journey with us. For our amazing staff we have provided one-off awards to
acknowledge their continued extra mahi, and for our communities we’ve been obsessed with operational
performance, which drives the reliable services they depend on,” says Mr Foran.

“For our shareholders, whose support has refuelled the business for future growth, we’ve completed a
successful recapitalisation that was structured to be fair to our shareholders, including those that didn’t take up
the rights offer.”

Mr Foran said cargo revenue continued to be a major contributor to the company’s performance, up 32 percent
to $1.0 billion. Additional flying under the New Zealand and Australian government airfreight schemes
contributed $403 million of that revenue. With borders now largely reopened, the Australian scheme has ended,
and the New Zealand scheme is tapering off and will cease by the end of March 2023.

Firmly in the ‘revive’ phase of the ‘survive, revive, thrive’ journey, Mr Foran says the current environment is
one of strong bookings despite ongoing challenges.


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 Note 3 of the Group’s 2022 audited annual financial statements

2
Please refer to supplementary table on page 3 for further information.

When travel restrictions began to lift in March the company recorded a very strong recovery in bookings and
revenues. This trend continues, with high booking levels through July and August. Corporate bookings are also
encouraging and are trending closely towards pre-Covid levels.

Mr Foran referred to the airline’s mid-August schedule changes, which reduced seats by 1.5 percent through
to the end of March 2023, as another example of doing the right thing for stakeholders.

“As we’ve been seeing overseas, travel demand is much stronger than anyone anticipated. But we’re operating
in a very tight labour market with high fuel prices, tough economic conditions and the highest levels of employee
sickness in more than a decade.

“Our rehiring efforts and training capability have been excellent, as has work to get our Boeing 777-300ER
aircraft back flying again, but the experience for some of our customers and the impact on our front-line staff
this winter has been unacceptable, so we’ve adapted yet again.

“Having adjusted our schedule to provide customers with increased surety over their travel plans for the coming
spring and summer, I am hugely appreciative of the work the Air New Zealand whānau has done to deliver
more than 25,000 flights across June and July alone.”

The airline also made investment decisions in support of its Kia Mau strategy. These include the plan to move
the Auckland workforce to its airport campus, investment in a new hangar at Auckland airport and the decision
to close its Gas Turbines business unit by the middle of the 2023 calendar year.

Air New Zealand Chair Dame Therese Walsh thanked Greg and the Air New Zealand team for a year in which
the airline not only managed significant challenges but also introduced changes that will deliver improved
services to customers and made progress on their long-term sustainability goals.

“The airline’s continued ability to step carefully through an ongoing pandemic while looking beyond the horizon
is becoming a core capability. While introducing and then removing vaccination requirements for domestic
travel, there have been preparations for our New York launch and the completion of designs for our new Boeing
787 Dreamliner cabin experience.

“For our Airpoints
TM
members there were more than 2,000 new products added to our Airpoints
TM
store as well
as the introduction of Flexipay, so customers can enjoy even more online shopping options. I’m especially
excited about our next generation app, which will give customers a more seamless travel experience when it
rolls out in the coming months.

“In April we announced ‘Flight NZ0’, a programme to engage customers as we work towards net zero carbon
emissions by 2050. We were the second airline globally to announce an interim science-based target to 2030
and continue to make progress on sustainable aviation fuel and zero emissions aircraft technology.

“Throughout the year we have also made improvements to the pay and conditions for our people, settling 12
collective employment agreements, increasing the base pay of our front-line workers and restarting incentive
payments to staff on individual employment agreements ensure we retain our dedicated team.”

Dame Therese acknowledged the support the airline has received from its shareholders over the course of a
challenging two-year period.

“From the Crown loan provided in the early days of the pandemic, to the airfreight support scheme that helped
us keep connected to key export markets, to the $2.2 billion recapitalisation completed in May which allowed
thousands of shareholders to take part in refuelling the airline for success. We have had significant support
from all our shareholders and for that we are truly grateful.”

Strong liquidity position with dividend suspended

As at 23 August 2022, the airline has available liquidity of $2.3 billion, consisting of approximately $1.9 billion
in cash and $400 million of available funds on the unsecured standby loan facility with the Crown. The cash
balance includes $200 million of issued redeemable shares which the airline intends to redeem once our
recovery is further progressed.

The Board does not expect to consider payment of dividends before the airline’s earnings substantially recover,
and in the context of a supportive and sustained broader economic environment and recovery.

Outlook for 2023

With borders now open to the majority of the airline’s markets, Air New Zealand expects the 2023 financial
year to represent the first full year of uninterrupted passenger flying since the beginning of the pandemic.

Total flying capacity for the 2023 financial year is expected to be in the range of 75 percent to 80 percent of
pre-Covid levels. On this basis, the airline anticipates a significant improvement in financial performance
relative to financial year 2022.

Given the degree of uncertainty regarding volatility in jet fuel prices, the risk of a global recession, and other
macroeconomic factors including inflationary pressures on costs, no earnings guidance will be provided at this
time.


Supplementary table – Summary data from the audited financial statements

2022
$M
2021
$M
%
Movement
Operating revenue 2,734 2,517 9%
Loss before other
significant items
and taxation
(725) (444) (63%)
Statutory loss
before taxation
(810) (415) (95%)
Net loss after
taxation
(591) (292) (102%)




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

---

All information is private and confidential
2022
Annual
Financial
Results
Investor presentation
25 August 2022

NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
AIR NEW ZEALAND 2022 ANNUAL RESULT
2
Thispresentationis givenonbehalfofAirNewZealandLimited(NZX: AIR
andAIR020;ASX: AIZ). Theinformationin thispresentation:
•Isprovidedforgeneralpurposesonlyandisnotanofferorinvitation
forsubscription,purchase,orarecommendationofsecuritiesin
AirNewZealand
•Shouldbereadin conjunctionwith,andis subjectto,AirNewZealand’s
annualfinancialstatementsfortheyearended30June2022, prior
annualandinterimreportsandAirNewZealand’smarketreleaseson
theNZXandASX
•Iscurrentatthedateofthispresentation,unlessotherwisestated.
AirNewZealandis notunderanyobligationtoupdatethispresentation
afteritsrelease,whetherasa resultofnewinformation,futureevents
orotherwise
•Maycontaininformationfromthird-parties. Norepresentationsor
warrantiesaremadeastotheaccuracyorcompletenessofsuch
information
•Refersto theyearended30June2022unlessotherwisestated
•Containsforward-lookingstatementsoffutureoperatingorfinancial
performance.Theforward-lookingstatementsarebasedon
management'sanddirectors’currentexpectationsandassumptions
regardingAirNewZealand’sbusinessesandperformance,the
economyandotherfutureconditions,circumstancesandresults.
Thesestatementsaresusceptibletouncertaintyandchangesin
circumstances.Thisis particularlythecaseasa resultoftheongoing
impactsoftheCovid-19pandemicandtheNewZealandGovernment's
actionsinresponsetothepandemic. AirNewZealand’sactualfuture
resultsmayvarymateriallyfromthoseexpressedorimpliedinits
forward-lookingstatementsandunduerelianceshouldnotbeplacedon
anyforward-lookingstatements
•Containsstatementsrelatingtopastperformancewhichareprovided
forillustrativepurposesonlyandshouldnotberelieduponasa reliable
indicatoroffutureperformance
•IsexpressedinNewZealanddollarsunlessotherwisestatedand
figures,includingpercentagemovements,aresubjectto rounding
TheCompany,itsdirectors,employeesand/orshareholdersshallhaveno
liabilitywhatsoevertoanypersonforanylossarisingfromthis
presentationoranyinformationsuppliedinconnectionwithit. Nothingin
thispresentationconstitutesfinancial,legal,regulatory,taxorotheradvice.
Non-GAAPfinancialinformation
Thefollowingnon-GAAPmeasuresarenotaudited: CASK,Gearing,Net
Debt,GrossDebt,EBITDASAandRASK. Amountsusedwithinthe
calculationsarederivedfromtheauditedGroupannualfinancial
statementsandFive-Yea rStatisticalReviewcontainedin the2022Annual
FinancialResults. Thenon-GAAPmeasuresareusedbymanagementand
theBoardofDirectorstoassesstheunderlyingfinancialperformanceof
theGroupin ordertomakedecisionsaroundtheallocationof resources.
Referto slide36fora glossaryofthekeytermsusedin thispresentation.
Forward-looking statements and disclaimer

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AIR NEW ZEALAND 2022 ANNUAL RESULT
3
JB to design
around hero
image
3

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AIR NEW ZEALAND 2022 ANNUAL RESULT
2022 Overview
4
56%
2
$2.2 billion
1,500
Reanimation of 777-300ER fleet
$725 million loss
1
New Zealand borders reopened
for FY22
despite record cargo revenue
from March 2022
now flying to 27 of our 29 ports
with 3 operational and the remainder flying by the end of FY23
recapitalisation
gearing and liquidity metrics restored
by Q4 FY22
staff rehired
across key operational
and support roles
$810 million
loss before
taxation
for FY22
1
Refers to loss before other significant items and taxation. Refer to slide 28 for further details.
2
This represents total FY22 capacity including cargo-only flying as a percentage of FY19 capacity. FY19 excludes the now suspended Auckland-London service.
of pre-Covid capacity

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AIR NEW ZEALAND 2022 ANNUAL RESULT
Thrive
Enhanced domestic offering
Optimised international network
Supercharged loyalty programme
Continued customer obsession
Industry leading staff engagement
Digital investments driving efficiencies
and seamless customer experience
Continued progress on our
decarbonisation ambitions
Delivering our full potential
Revive
Revive
2
Safeguardingour balance sheet
Structural reductions to cost base and
deferral of capital spend
Early retirement of 777-200 fleet and
temporary grounding of 777-300ER fleet
Utilisation of Government support
mechanisms
Cargo diversification
Kia Mau strategy refinement
Restarting our network
Reopening of our international borders
Strongest demand and revenue environment
in two years
$2.2 billion recapitalisation complete
Hiring and rehiring staff, reinstating benefits
Launching a stream of customer innovations
Reanimating 777-300ER fleet, international
lounges and offshore teams
Launch of our decarbonisation roadmap
Movement to agile ways of working
Air New Zealand is firmly in the revive phase of our recovery
Following more than two years of pandemic-related impacts, we
are well positioned to leverage strong demand and deliver on our
strategy
3
Survive
1
5

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AIR NEW ZEALAND 2022 ANNUAL RESULT
Passenger bookings stronger than expected
•Domestic bookings at 100% of pre-Covid levels since April 2022
−Corporate demand recovering well from Omicron outbreak,
trending towards pre-Covid levels
−Leisure demand currently exceeding pre-Covid levels
−Forward sales exceeding pre-Covid levels, reflecting higher
average fares and cost environment
•International bookings at 65-70% of pre-Covid levels
−Tasman and Pacific Islands bookings reflect strong inbound/outbound
mix, and continue to build with capacity increases from July 2022
−North America demand strongest of our long-haul markets
−Asia bookings lower, reflecting varying levels of border flexibility in
those markets
Following the phased relaxation of New Zealand’s travel restrictions from March 2022, the airline
continues to see strong passenger bookings
6

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AIR NEW ZEALAND 2022 ANNUAL RESULT
Network and schedule focused on reliability and resilience
Currently expecting capacity at ~75% to 80% of pre-Covid levels for FY23, with mix skewed towards
domestic and short-haul markets
SectorCapacity
1
Domestic95% to 100%
Tasman and Pacific Islands80% to 85%
International long-haul
2
65% to 70%
Group~75% to 80%
Domestic
•Strong growth across regional ports
•Increased international passengers connecting to domestic ports across
New Zealand as the international network rebuilds
•Introduction of domestic A321neo fleet from the second half of FY23,
boosting seats on jet routes
Tasman and Pacific Islands
•Demand from Australia, our largest inbound market, building back up
•Strong growth across the Pacific Islands network, particularly Rarotonga
International long-haul
•Full widebody fleet in operation by June 2023 and ongoing cargo
strength
•Launch of direct flights to New York city from September 2022
•Expectation of international borders being largely open across the full
financial year
7
1
Compared to pre-Covid levels in FY19.
2
International long-haul for FY23 includes Bali and Honolulu, which was reported under Tasman and Pacific Islands for FY21 and FY22.

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AIR NEW ZEALAND 2022 ANNUAL RESULT
Headwinds
Tight labour
market
High levels of
staff illness
Weather
events
Record high fuel
prices and cost
pressures
•Proactive capacity
reductions to ensure
greater schedule reliability
•Large scale recruitment,
training new staff at pace
•Lifting our lowest wages
and settling 12 collective
employment agreements
•Development of digital tools
•Fuel hedging and yield
management
Air New Zealand actions
Impact on operations
Focused on restoring operational resiliency and reliability into the network
Taking decisive actions to respond to headwinds
8
OTP Performance
Extreme
weather
and staff
illness
Weather
conditions

Richard Thomson
Chief Financial Officer
Financial
update

AIR NEW ZEALAND 2022 ANNUAL RESULT
• Operating revenue $2.7 billion, up 8.6%
‒Passenger revenue stable at $1.5 billion
‒Cargo revenue up 32%
• Loss before other significant items and taxation
1
$725 million
• Loss before taxation $810 million
• Net loss after taxation $591 million
• Short-term cash of $1.8 billion
2
• Gearing of 45.4%
• Dividend continues to be suspended until
further notice
1
Refer to slide 28 for further details on Other Significant Items of $85 million.
2
As at 30 June 2022. Please refer to slide 25 for details on liquidity as at 23 August 2022.
3
Historical earnings have been restated following the International Financial Reporting Interpretations Committee ("IFRIC") issuing an agenda decision on Configuration or Customisation Costs in a Cloud Computing Arrangement.
2022 financial summary
Covid-19 impact
Earnings/Loss before other significant items and taxation
3
($ millions)
10
547
387
(88)
(444)
(725)
20182019202020212022
Financial loss reflects pandemic-related travel restrictions across most of the financial year

AIR NEW ZEALAND 2022 ANNUAL RESULT
Additional commentary
•Labour costs increased faster than capacity, up
18%, to support the build back of capacity and
the delivery of the airline’s strategic priorities
2
.
An employee-wide award in the period, provision
for employee incentives and reduced
government subsidies also impacted costs
•Maintenance, aircraft and passenger services
costs excluding FX increased 5% reflecting
additional flying from a ramp up in domestic
demand and the reopening of international
borders
•Sales, marketing and other expenses increased
27% driven by increased brand activity to
support sales ahead of relaunching of
international routes, as well as commissions and
digital activity
•Ownership costs decreased 6.1% largely due to
reduced depreciation on widebody aircraft fully
impaired in the prior year and aircraft exits,
partially offset by new aircraft deliveries
Profitability waterfall
11
1
For further details on fuel cost movement, refer to slide 14.
2
Full-time equivalent staff levels increased 13% to ~ 8,900, which represents approximately 75% of FTE labour compared to pre-Covid levels.
3
Refer to slide 26 for further information regarding the P&L impact of the aviation support package.

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AIR NEW ZEALAND 2022 ANNUAL RESULT
• Cargo revenue of $1.0 billion increased 32% including FX
–Reflecting an increase in capacity of 19%, excluding Government supported flights
• Growth largely driven by:
–Higher volume of Government supported flights which contributed $403 million
to cargo revenue
▪New Zealand Government support reducing over time to reflect the
expected recovery of international passenger demand by March 2023
▪Australian Government scheme concluded in June 2022
–Underlying shift in consumer preference towards airfreight vs sea freight
•Excluding impact of Government supported flights, cargo yields improved 4.0%,
reflecting fewer international carriers in the New Zealand market
•While demand remains strong, cargo revenue is not expected to be at this level in
FY23
12
Delivering $1.0 billion in revenue in 2022; level of contribution expected to reduce
Cargo, a major contributor to revenue, assisted
by Government supported flights

AIR NEW ZEALAND 2022 ANNUAL RESULT
1
Excluding fuel price movement, foreign exchange and third-party maintenance, CASK increased 2.2%.
Commentary
•CASK
1
increased this year due to:
–Lack of aviation support package
which occurred in the prior period;
–Diseconomies of scale and
inefficiencies in the domestic
network, offset by an increase in mix
towards lower cost cargo-only flying;
and
–Moderate levels of cost held across
the year to ensure operational
readiness, despite pandemic-related
travel restrictions across most of the
period
•The mix benefit of greater cargo-only
flying is expected to reverse in FY23 with
a return to greater levels of international
passenger flying as the network scales
back towards 75% to 80% of pre-Covid
levels
CASK movement
UNDERLYING CASK
DECREASED DUE TO
CARGO MIX
0.6%
•Reported CASK
1
increased 9.1%
•Excluding the impact of fuel price movement, foreign exchange, removal of the
aviation support subsidy and third-party maintenance, underlying CASK
decreased 0.6%
Unit cost performance predominantly impacted by a significant increase in the
underlying jet fuel price
13

AIR NEW ZEALAND 2022 ANNUAL RESULT
Fuel cost movement
14
Increase in fuel cost primarily related to price, with hedging helping to mitigate

AIR NEW ZEALAND 2022 ANNUAL RESULT
Air New Zealand’s fuel hedging policy and approach remains unchanged; the primary goal is to provide the
business time to adjust
Fuel hedging update
Fuel hedge position
(as at 17 Aug 2022)
Period
Hedged volume
(in barrels)
% hedged
Net
compensation
from hedging
(USD)
1
1H FY231,705,00056%~$10 million
2H FY23880,00025%~$1 million
• Hedging policy remains unchanged. Key principles include:
‒Maximum term of 12 to 18 months
‒Hedge within minimum and maximum band with
a declining wedge structure
‒Largest proportion of hedges in place for the next 3
months, conceptually linked to customer booking profile
‒Not speculative, provides the business time to adjust
other levers
• Hedge Brent crude, therefore subject to crack spread
fluctuations
• Hedge portfolio structured to allow participation to downward
price movements, primarily through use of call options
• With the reopening of New Zealand's borders, hedging to
our expected FY23 flying schedule
15
2023 Fuel cost sensitivity
2
1
Net compensation from fuel hedges represents the unrealised gains and losses on fuel hedges and is in USD.
2
Fuel cost sensitivity takes into account the current hedge position.

AIR NEW ZEALAND 2022 ANNUAL RESULT
Ramp up in demand reflected in operating cashflows
1
Revenue in advance from strong bookings has driven a robust operating cashflow performance
1
ExcludesCovid-19 related cashflows, including redundancies, wage subsidies, New Zealand tax refunds, government levy relief, PAYE arrangement and cargo grants​. Refer to slide 27 for further details.
$603m
in 2H FY22
Q4 2021
Bubbles
operating
Q1 2022
No Tasman
bubble and NZ
lockdown
Q4 2022
NZ borders
reopen
16

AIR NEW ZEALAND 2022 ANNUAL RESULT
17
Completion of the recapitalisation and Crown Loan repayment, in addition to strong
bookings, have driven the improvements
Key balance sheet metrics have been restored

AIR NEW ZEALAND 2022 ANNUAL RESULT
Actual and forecast aircraft capital expenditure
1
HistoricalForecast
•Forecast aircraft capital expenditure profile reflects:
−Expecteddeferral of first two Boeing 787 aircraft from
FY24 to FY25
−Delivery flexibility remains in place for a substantial
portion of the Boeing 787 delivery stream
•No committed aircraft capital expenditure currently beyond
2028
Fleet investment update
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 and engine maintenance.
* Does not reflect four Boeing 787s planned for delivery from FY27.
**Does not reflect two A321neos planned for delivery in FY27
.
Aircraftdelivery schedule (as at 30 June 2022)
Number in
existing fleet
Number
on order
DeliveryDates (financial year)
2023202420252026
Owned fleet on order
Boeing 787
144*--22
Airbus A320neo / A321neos
135**41--
18
0
200
400
600
800
1,000
202020212022202320242025202620272028
$ millions

AIR NEW ZEALAND 2022 ANNUAL RESULT
Boeing 787
retrofit
Unlike aircraft capital expenditure, non-aircraft capital expenditure is generally contractually
uncommitted and subject to changes in phasing and level of spend
Engine
maintenance
Digital
transformation
•Interior retrofit of 14 existing
Boeing 787 aircraft
•Anticipated to commence
no earlier than mid-2024
•Estimated cost of ~ $450
million, staggered over
several years
•Spend relates to overhaul
of owned engines across
all fleet types
•Has an enduring benefit
of 5+ years
•Annual expenditure varies
based on utilisation of
aircraft
•Investments in digital
assets linked to Kia Mau
strategy, focused on
ensuring resiliency and
optimising customer and
employee experiences
•Annual expenditure in the
range of ~$50 million to $75
million
Property and
infrastructure
•Investments in buildings and
operational facilities
•Includes expenditure on the
new Auckland engineering
hangar, cargo facilities and
head office relocation
•Elevated annual expenditure
of ~$75 million over the next
4 years
Other investments progress strategic objectives and
improve operational resiliency
Other capital expenditure is generally contractually uncommitted and subject to changes in phasing and spend
19

Greg Foran, Chief Executive Officer
Outlook

AIR NEW ZEALAND 2022 ANNUAL RESULT
21
With borders now open to the majority of the airline’s markets, Air New Zealand expects
the 2023 financial year to represent the first full year of uninterrupted passenger flying
since the beginning of the pandemic.
Total flying capacity for the 2023 financial year is expected to be in the range of 75
percent to 80 percent of pre-Covid levels. On this basis, the airline anticipates a
significant improvement in financial performance relative to financial year 2022.
Given the degree of uncertainty regarding volatility in jet fuel prices, the risk of a global
recession, and other macroeconomic factors including inflationary pressures on costs, no
earnings guidance will be provided at this time.
2023 Outlook

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AIR NEW ZEALAND 2022 ANNUAL RESULT
Profitably grow and enhance
our iconic domestic offering,
providing New Zealanders with
even more choice as the best-
connected country in the world
Connecting New Zealanders
and our exports to the world
through an optimal international
network and premium
leisure product
Increase products and benefits
members value from our
Airpoints
TM
programme,
supercharging the loyalty
ecosystem for the airline
Air New Zealand’s Kia Mau strategy is focused on 3 clear drivers of value creation, executed through excellence
and innovation across 4 key business enablers
Strategic roadmap for the medium-term is critical to success
Grow
domestic
Optimise
international
Lift
loyalty
Operational excellence that
provides a seamless travel
experience for our customers –
do it right, first time, every time
Brilliant
Basics
Committed to meaningful action
to reduce our carbon impact
Serious about
Sustainability
Technology focused on delivering
a world-class experience for our
people and customers while
driving efficiencies
Digital
Dexterity
Putting people, health and
safety first
Prioritising
People & Safety
Profit drivers
Enabled by strong culture and focused investment
22

Supplementary
information

AIR NEW ZEALAND 2022 ANNUAL RESULT
Liquidity and gearing position
$ millions30 Jun 202230 Jun 2021
Medium-term
financial targets
Gross debt(3,568)(3,308)
Cash, restricted deposits and net open
derivatives
2,176603
Net debt(1,392)(2,705)
Gross debt/EBITDASAN/A8.1x<3.3x
Net debt/EBITDASAN/A6.6x
Gearing45.4%71.1%45% to 55%
Total liquidity2,1931,416
Minimum liquidity level of
~$700 million
Liquidity (% of 2019 revenue)37.9%24.5%
Moody's ratingBaa2 (investment grade)Baa2 (investment grade)Baa2 (investment grade)
25

AIR NEW ZEALAND 2022 ANNUAL RESULT
Impact to the Profit & Loss
Support programme
2022
($M)
2021
($M)
P&L line item
Airfreight schemes403333Cargo revenue
Wage subsidies4956Labour cost
Air navigation subsidies-40Aircraft operations
Passenger levy relief-18Passenger services
Biosecurity border processing levy-1Other expenses
A series of government support programmes related to Covid-19 contributed to the 2022 and 2021 result
2022 result reflects benefit of support programmes
26
Aviation
support
package

AIR NEW ZEALAND 2022 ANNUAL RESULT
Adjusted operating cashflow reconciliation
Q4-20
$M
H1-21
$M
H2-21
$M
H1-22
$M
H2-22
$M
Operating Cashflow (statutory)
(406)(136)45440510
Aviation security, air navigation
and passenger levy relief
-(59)---
Cargo grants and assistance
-(147)(186)(194)(209)
PAYE deferral
-(156)(98)(43)298
Wage subsidies
(79)(53)(3)(47)(2)
New Zealand tax refunds
(65)-(34)--
Redundancies
371051356
Adjusted Operating Cashflow
(513)(446)146(239)603
27

AIR NEW ZEALAND 2022 ANNUAL RESULT
Jun 2022
$M
Jun 2021
$M
Loss before taxation (per NZ IFRS)(810)(415)
Add back other significant items:
De-designation of hedges1318
FX losses/(gains) on uncovered foreign currency debt43(143)
Aircraft impairment and lease modifications678
Impairment of intangible asset24-
Reorganisation costs(1)39
Gain on sale of airport slots-(21)
Loss before other significant items and taxation(725)(444)
1
Loss before other significant items and taxation represents 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’s audited annual financial statements. Further details are contained within Note 3 of the Group’s 2022 annual
financial statements.
Loss before other significant items and taxation
1
28

AIR NEW ZEALAND 2022 ANNUAL RESULT
Financial overview
29
p
Jun 2022
$M
Jun 2021
$M
Movement
$M
Movement
%
Operating revenue 2,7342,5172178.6%
Loss before other significant items and taxation(725)(444)(281)(63%)
Loss before taxation(810)(415)(395)(95%)
Net loss after taxation (591)(292)(299)(102%)
Operating cash flow 55031823273%
Cash position1,7932661,527574%
Gearing45.4%71.1%-25.7 pts

AIR NEW ZEALAND 2022 ANNUAL RESULT
Jun 2022Jun 2021Movement
1
Jun 2019Variance to
pre-Covid
1
Passengers carried (‘000s)
7,7458,649(10%)17,738(56%)
Available seat kilometres (ASKs, millions)
– passenger flights
10,65110,3043%46,029(77%)
Available seat kilometres (ASKs,
millions) – passenger and cargo-only
flights
20,01917,41015%46,029(57%)
Revenue passenger kilometres (RPKs,
millions)
7,1465,90821%38,573(81%)
Load factor
67.1%57.3%9.8 pts83.8%(16.7 pts)
Passengerrevenue per ASKs as
reported (RASK, cents)
13.914.3(3%)10.829%
Passengerrevenue per ASKs, excluding
FX (RASK, cents)
13.914.3(3%)10.730%
Group performance metrics
1
Calculation based on numbers before rounding.
30

AIR NEW ZEALAND 2022 ANNUAL RESULT
Domestic
Jun 2022Jun 2021Movement
1
Jun 2019Variance to
pre-Covid
1
Passengers carried (‘000s)
6,8368,191(17%)11,513(41%)
Available seat kilometres (ASKs,
millions) – passenger flights
4,9295,480(10%)7,104(31%)
Revenue passenger kilometres
(RPKs, millions)
3,4524,244(19%)5,957(42%)
Load factor
70.1%77.4%(7.3 pts)83.9%(13.8 pts)
Passengerrevenue per ASKs as
reported (RASK, cents)
19.521.7(10%)22.5(13%)
Passengerrevenue per ASKs,
excluding FX (RASK, cents)
19.521.7(10%)22.4(13%)
1
Calculation based on numbers before rounding.
31

AIR NEW ZEALAND 2022 ANNUAL RESULT
Tasman & Pacific Islands
1
Jun 2022
Jun 2021
Movement
2
Jun 2019Variance to
pre-Covid
2
Passengers carried (‘000s)
73438690%4,044(82%)
Available seat kilometres (ASKs,
millions) – passenger flights
2,6652,21420%13,640(80%)
Revenue passenger kilometres
(RPKs, millions)
1,937964101%11,195(83%)
Load factor
72.7%43.5%29.2 pts82.1%(9.4 pts)
Passengerrevenue per ASKs as
reported (RASK, cents)
11.16.472%9.616%
Passengerrevenue per ASKs,
excluding FX (RASK, cents)
11.16.473%9.616%
32
1
Pacific Islands including Bali and Hawaii.
2
Calculation based on numbers before rounding.

AIR NEW ZEALAND 2022 ANNUAL RESULT
International
Jun 2022Jun 2021Movement
1
Jun 2019Variance to
pre-Covid
1
Passengers carried (‘000s)
17572145%2,181(92%)
Available seat kilometres (ASKs,
millions) – passenger flights
3,0572,61017%25,285(88%)
Revenue passenger kilometres
(RPKs, millions)
1,757700151%21,421(92%)
Load factor
57.5%26.8%30.7 pts84.7%(27.2 pts)
Passengerrevenue per ASKs as
reported (RASK, cents)
7.25.337%8.1(11%)
Passengerrevenue per ASKs,
excluding FX (RASK, cents)
7.25.337%7.9(9%)
1
Calculation based on numbers before rounding.
33

AIR NEW ZEALAND 2022 ANNUAL RESULT
1
From 2021 onwards, excludes the Boeing 777-200ER fleet.
* Excludes short-term leases which provided cover for the global Rolls-Royce engine issues.
2022202320242025
Boeing 777-300ER7666
Boeing 78714141416
Airbus A32018171515
Airbus A320/A321neo13171818
ATR72-60029292929
Bombardier Q30023232323
Total Fleet104106105107
Fleet delivery and age update
7.5
7.1
7.1
6.7
7.3
7.7
8.5
9.2
9.8
2018*2019*2020202120222023202420252026
Aircraft fleet age in years
(seat weighted)
1
HistoricalForecast
34

AIR NEW ZEALAND 2022 ANNUAL RESULT
Fleet simplification strategy on track
Air New Zealand is simplifying its fleet to drive improved operating cost and capital expenditure outcomes
Widebody
Narrowbody
Turboprop
Age
2
~9 years
7.3 years ~10 years
FY22 (5 types) Total – 104FY28 (4 types)
1
Total – 107
787
(22)
A320
(33)
AT R 7 2
(29)
Q300
(23)
777-300ER
787-9/10
A320
A321
787
(14)
777
(7)
787-9
A320
(31)
A320
A321
AT R 7 2
(29)
Q300
(23)
ATR72-600
ATR72-600
FY11 (8 types) Total – 102
747
(5)
767
(5)
777
(11)
A320
(14)
737
(15)
AT R 7 2
(11)
Q300
(23)
1900D
(18)
777-300ER
777-200ER
ATR72-500
35
1
This represents the expected fleet at the end of the FY28 financial period.
2
Average seat-weighted fleet age.

AIR NEW ZEALAND 2022 ANNUAL 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,
amortisation, significant items and
associates (EBITDASA)
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, lease liabilities and redeemable shares
Net Debt
Interest-bearing liabilities, lease liabilities and redeemable shares 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
Liquidity
Cash and cash equivalents (which excludes restricted deposits) plus the outstanding amount of any Crown standby loan
facility available to be drawn or undrawn redeemable shares
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)
Glossary of key terms
The following non-GAAP measures are not audited: CASK, Gearing, Net Debt, Gross Debt, EBITDASA and RASK. Amounts used within thecalculations are derived from the audited Group financial statements and Five Year Statistical Review
contained in the 2022 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.
36

AIR NEW ZEALAND 2022 ANNUAL 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
37

---

ANNUAL
SHAREHOLDER
REVIEW
2022
Sam and Kiri
Flight Attendants

23LETTER FROM THE CHAIR
AIR NEW ZEALAND ANNUAL SHAREHOLDER REVIEW 2022AIR NEW ZEALAND GROUP
LETTER FROM THE CHAIR
LETTER FROM THE CHAIR _________________________________________ 2
Q&A WITH THE CEO
_____________________________________________________ 5
OUR SUSTAINABILITY JOURNEY
_____________________________ 8
A YEAR IN THE AIR
______________________________________________________ 11
FINANCIAL COMMENTARY
______________________________________12
CHANGE IN PROFITABILITY
____________________________________ 16
FINANCIAL SUMMARY
______________________________________________ 17
FINANCIAL POSITION
_______________________________________________ 18
feasibility of local production here in New Zealand and
has a goal that 1 percent of our 2023 fuel uplift will be
from SAF. We know the use of SAF on our long-haul
network is the most significant carbon reduction lever
we can pull. Having committed to have SAF represent
10 percent of our total fuel uplift by 2030, this is a vital
step in our journey.
Performance update
Turning to the 2022 financial result, Air New Zealand
has delivered a loss before other significant items
and taxation
1
of $725 million, a statutory loss before
taxation of $810 million and a statutory loss after
taxation of $591 million.
While passenger demand is currently at levels higher
than we have seen in over two years, this follows
a long period of suppressed demand and limited
international passenger flying. The introduction of
the Delta variant into New Zealand, and the resulting
regional lockdown for Auckland meant that for
the first half of the 2022 financial year, Domestic
capacity was down substantially on pre-Covid levels
and international passenger flying was still very
limited. This, combined with record high fuel prices,
has contributed to our financial losses for the year.
Pleasingly, corporate customers have returned
with some gusto, trending towards pre-Covid
levels. Cargo continues to be a major contributor to
revenue, delivering $1.0 billion this financial year, an
increase of 32 percent on the prior year. This increase
reflects additional flying under the New Zealand and
Australian Government airfreight schemes which
contributed $403 million, as well as heightened
seasonal demand and widebody flying. We expect this
level of cargo revenue to moderate as the recovery
continues, with the Australian scheme now finished
and the New Zealand support scheme tapering off.
However, cargo continues to be important to our
strategy of optimising international profitability.
Like all businesses that rely to a degree on discretionary
spend, we are closely monitoring consumer behaviour
given the cost of living and inflationary pressures, and
the risk of a global recession.
These pressures have already led to higher fuel prices
and higher operating costs, which in turn has resulted
in increased airfares. We are sensitive to this and
remain committed to ensuring our pricing is affordable
and competitive.
Recapitalisation
The $2.2 billion recapitalisation completed in
May marked a hugely important step in Air New
Zealand’s recovery and in our ability to move forward
into Revive in earnest. It allowed us to repay the
Government loan provided to the airline in March
2020, while also restoring the balance sheet, so we
are fighting fit to deliver on our strategy as demand
returns following the reopening of borders.
We were pleased with the success of the rights offer,
which allowed our existing shareholders to take
part in refuelling the airline for success. Thousands
of shareholders participated, exceeding our
expectations and market benchmarks for this type of
offer. The achievement of a $0.28 per share premium
in the bookbuild process meant shareholders who
did not participate still derived value from the offer.
Thanks to the support of our debt investors, we
successfully executed a $600 million Australian
debt transaction in May, as part of our planned
recapitalisation package. We also have a new $400
million unsecured standby loan facility with the Crown,
which is undrawn, as well as $200 million of issued
Redeemable Shares which we intend to redeem once
our recovery is further progressed.
The success of the recapitalisation underscores the
confidence shareholders have in our strategy and our
ability to drive real value in the future. We thank all our
shareholders for their ongoing support.
Certainly, we could not have achieved any of this
without the unwavering dedication of our incredible
team of Air New Zealanders. I am so proud of the
Air New Zealand whānau and the immense mahi
that has been undertaken, both to respond to
immediate challenges, but also to keep our eyes
firmly set on the future.
Our focus across 2022 has been on remaining nimble,
responding to the ever-changing environment, and
above all, keeping our customers, our people and our
shareholders front of mind. The world has changed so
much since the pandemic began in early 2020 and we
are making sure Air New Zealand changes with it. We
don’t want to just build back – our vision is to create
the greatest flying experience on Earth, and we know
we can’t achieve this by sticking to the status quo.
Over the past two years, the team at Air New Zealand
has been testing new ideas, investing in digital
capabilities and redesigning onboard products
to deliver a steady stream of innovation for our
customers. The recent announcement of a new suite
of seat offerings for our long-haul aircraft, designed to
offer all customers the best sleep in the sky, no matter
which cabin they choose to fly in, is just one example
Contents
It’s fair to say
that 2022 has
been a busy one.
Restarting the airline at scale, dealing with
complex operational challenges, while also
launching and completing a significant
recapitalisation, has been no easy feat.
of the innovative solutions our team has been working
hard on. The organisation has also moved to an agile
way of working called ‘Full Potential’, which will enable
us to deliver value faster and give us the ability to
respond to change quickly.
We have made significant headway on the three key
pillars of value creation under our Kia Mau strategy
– Grow Domestic, Optimise International and Lift
Loyalty. Effective execution of this strategy is key
to our ongoing success as we move through the
Revive phase of our recovery and into Thrive. Our
exploration of electric, hybrid and green hydrogen
aircraft as options for our future domestic fleet has
further advanced and we have also invested in a
new digital platform for our loyalty programme, to
put greater flexibility and customisation options in
the hands of our millions of Airpoints™ members.
North America plays a key role in optimising our
international network and we are incredibly excited
to launch our inaugural nonstop flight to New York in
a little under a month’s time.
During the year, we made meaningful progress on
our journey to net zero carbon emissions by 2050,
setting an interim 2030 science-based emissions
reduction target to guide us and keep us accountable.
sustainable aviation fuel (SAF) will be the key to
achieving this ambitious target. Air New Zealand has
been working with the Government to investigate the
Dame Therese Walsh
Chair
1. Refer to the Financial Commentary section on page 12.
Hayden
Flight Attendant
Jason
On Job Trainer

LETTER FROM THE CHAIR
|
Q&A WITH THE CHIEF EXECUTIVE OFFICER
Q&A WITH THE
CHIEF EXECUTIVE OFFICER
45
AIR NEW ZEALAND ANNUAL SHAREHOLDER REVIEW 2022AIR NEW ZEALAND GROUP
LETTER FROM THE CHAIR
(CONTINUED)
The current environment
As the world opens up again, the whole airline
is excited to get back to doing what we love –
reconnecting families, friends and colleagues both
within New Zealand and around the globe and
bringing tourists back into our beautiful country.
Rebuilding the airline after more than two years of
highly restricted operations and in the face of an
unprecedented surge in demand, has provided its
own set of challenges. I want to say thank you to
our customers for their patience as we rebuild our
network. We are working hard to restore reliability
and resilience into our flying schedule, to give
customers the Air New Zealand experience they
know and love.
Adding more capacity will help and we have started
bringing back our 777-300ER fleet, with three of
these aircraft already in the skies again. By the end
of the 2023 financial year, we will have the remaining
four flying again too.
Investing in our people
Since December last year, we have been undertaking
the extensive process of hiring, and re-hiring more
than 1,500 people across the business and still have
more than 1,000 vacancies to fill.
Sustainable income for our people is something we
have increased our focus on in recent months, and
a personal highlight for me this year has been the
work undertaken to deliver a lift in our lowest wages.
We have also increased opportunities for our airport
and aircraft workers to cross-skill, creating the
potential to increase earnings via more highly skilled
work and blended shifts. This is just the start of our
journey to create great jobs.
We were pleased to recognise the contribution of
our permanent employees over a tough two years by
reinstating pay benefits, and providing one-off awards
of shares and cash. We know our people are key to
Q. Looking back on the last 12 months,
what are the three key learnings you
are taking into next year?
A. 1 – Do the right thing. The reality of a crisis like
the one we have experienced is that it creates
opportunity. It’s obvious once you move beyond the
calamity of the situation, but first you must do that.
I see no point in dwelling on the negatives. Once
you suppress that feeling, you can move forward
and reach for the opportunities. We decided to
grab the opportunities, with both hands, and move
positively towards customer and staff obsession.
While we recognise and acknowledge things have
been far from perfect, we have never strayed from
a simple principle. That is, “do the right thing”.
The right thing can be extending status for
Airpoints™ members, to keeping pricing fair,
increasing our lowest wages, to being honest about
schedules heading into Christmas, refunds for
those in hardship or extending credits. I always
go back to the principle of, “do the right thing”.
2 – Attitude is a small thing that makes a big
difference. We have been tested more than ever
this year, with bubbles and borders opening, then
closing again, various health mandates and more
recently a wave of staff illness which has seen
absenteeism at historically high levels. Throw in
some inclement weather and we have a perfect
storm of last-minute cancellations. It’s no secret
that restarting an airline is much more difficult
than shutting one down, but one of our key
learnings has been to stay positive. There were
some days where we might have felt like giving up,
but even on those challenging days, and trust me
we have had our share, the entire team have stood
tall, taken a deep breath and got on with it. Attitude
is indeed a small thing that makes a big difference,
and we will need more of it as we deal with the new
abnormal that is airline travel.
Air New Zealand’s world class service and culture.
This year more than ever, they have proven to be the
most passionate, dedicated, and hard-working team
you could hope for, with countless examples of people
going above and beyond.
Dividend
Air New Zealand’s Board does not expect to
consider payment of dividends before the airline’s
earnings substantially recover, and in the context
of a supportive and sustained broader economic
environment and recovery.
Outlook
With borders now open to the majority of the airline’s
markets, Air New Zealand expects the 2023 financial
year to represent the first full year of uninterrupted
passenger flying since the beginning of the pandemic.
Total flying capacity for the 2023 financial year is
expected to be in the range of 75 percent to 80
percent of pre-Covid levels. On this basis, the airline
anticipates a significant improvement in financial
performance relative to financial year 2022.
Given the degree of uncertainty regarding volatility
in jet fuel prices, the risk of a global recession, and
other macroeconomic factors including inflationary
pressures on costs, no earnings guidance will be
provided at this time.
Closing
We are pleased to be flying to 27 of our 29
international ports and have now welcomed
thousands of kiwis and visitors back to Aotearoa.
While there is plenty of uncertainty ahead, the desire
for travel and connection is strong.
There is an art to building back – we have to get the
balance just right. The Air New Zealand team, with
your support, has the right strategy, the right people
and the right mindset in place to succeed.
Ehara taku toa i te toa takitahi, engari he toa takitini
Ngā mihi

Dame Therese Walsh — Chair
25 August 2022
3 – Always think forward. Creativity is thinking
up new things, innovation is doing them. We don’t
believe in going back to the way things were, we
believe in being prepared for the new abnormal.
So, there was no sitting on our hands during the
pandemic – we used the time to think forward and
do what we do best: innovate for our customers.
A lie flat Skynest in the Economy cabin was just
a concept in 2020 – but we have worked hard
to make this a reality as we know it will be a
gamechanger for economy travellers on ultra-
long-haul flights. Thinking forward is also about
having the right strategy in place. Our Kia Mau
strategy is coming to life, and we have taken the
bold step of reimagining how we work by going
agile as a workforce. We call it “Full Potential”
because that is exactly what it’s designed to do –
get us to our full potential. Whether it be with the
brilliant basics and delivering crucial incremental
improvements to our service or bigger ticket items
like a new loyalty platform. I firmly believe we are
building back an airline that’s world leading. Using
our time wisely over the past few years has meant
we could come out of the blocks firing, which is
exactly what we have done.
Greg Foran
Chief Executive Officer
Alison
Team Leader Contact Centre
Ritesh
Contact Centre Consultant
Andrew
DOC Ranger
Victoria
Sustainability Manager

67
AIR NEW ZEALAND ANNUAL SHAREHOLDER REVIEW 2022AIR NEW ZEALAND GROUP
Q&A WITH THE CHIEF EXECUTIVE OFFICER (CONTINUED)
Q&A WITH THE CHIEF EXECUTIVE OFFICER
Q. Sustainability is a huge challenge
for aviation globally, where is Air New
Zealand channelling its efforts?
A. Variants of Covid-19 will pass, or at least be
something we learn to live with, but climate change
is the biggest crisis facing our industry. We are
an island nation dependent on our connections
with the rest of the world and we must find a more
sustainable way to fly if we want to ensure our
tourism and export industries thrive over the long-
term. I am proud of where we are in our journey, and
2022 marks a year of genuine progress on many of
our key decarbonisation goals.
We made a commitment to New Zealanders earlier
this year with Flight NZ0™, a body of work focused
on decarbonising to reach our goal of net zero
carbon emissions by 2050. More recently, we set an
interim science-based target to 2030 to guide us on
our journey to 2050. Being the second airline in the
world to announce the accreditation of this target by
an independent third-party is particularly important
– we know you get one point for talking, nine points
for doing and we are committed to taking genuine
climate action.
SAF and Zero Emissions Aircraft Technology (ZEAT)
are the key to reducing around 70 percent of our
total emissions. In the past year, we have partnered
with public and private organisations to accelerate
the research and development of these. One thing
that is clear to me, is that we cannot solve for this
crisis alone. Supportive policy frameworks will
be crucial to accelerating the introduction and
production of SAF into New Zealand – we have been
vocal in this space and will continue to drive for a
collective approach to solving this issue.
Q. Any final thoughts as you
sign off FY22?
A. I think I say this every year, but it’s been another
big year for Air New Zealand. Hiring back and
training staff, borders reopening, a recapitalisation,
announcing our new cabin experiences, and the
hundreds of little things in between. Combine
that with high fuel prices, soaring inflation, higher
operating costs and the risk of a global recession –
it sure has been a bit of a ride.
But one thing we know for sure is that we wouldn’t
be where we are today without the loyalty and
support of our customers and shareholders, and I
want to thank them for sticking by us when things
got tough. I’d also like to thank our people. You
are what makes Air New Zealand one of the best
airlines in the world and I’m so grateful for the hard
mahi you put in everyday to keep us going.
Flight NZ0002
AKL JFK
Flying direct to New York City
from 17 September 2022
Q. The needs of customers have changed,
how are you adapting to this?
A. Customers are at the core of every decision we
make, and in this new world, simplicity is key. What
our customers want is a seamless experience from
the minute they visit our website to book, until they
collect their bags at the other end. If we can take the
friction out of this end-to-end journey, then we are
doing our job.
So we are delivering on this. Our next generation
app launches shortly, building on the legacy of
what we know our customers love. It will have
clearer prompts for self-service, integrated travel
notifications and critical day-of-travel information so
customers know the status of their flight at all times.
We also know customers no longer wish to transit
through busy airports, and demand for ultra-long-
haul travel has increased. We’re giving them the
ability to fly direct from Auckland to New York in just
over 16 hours. We know they want to arrive rested,
so we will be refitting our cabins to offer customers
a restful night’s sleep, no matter where they are on
the aircraft. Skynest is a world leading innovation
and one that we’ve worked hard to get right.
Similarly, our new Business Premier Luxe Suites
have been designed for travellers that require a little
more space and privacy.
But it’s not just the big things. We will continue to
offer 100,000 fares under $100 at any one time,
because we know the importance of affordable
fares. And that unique kiwi hospitality that
customers love when they step on-board our
aircraft, that’s not going anywhere either.
We’ve spent a lot of time over the last year setting
ourselves up for success. As I said earlier, our Kia
Mau strategy is coming to life, and while we are still
feeling the effects of Covid-19, the passion for travel
is stronger than ever.
Ngā mihi

Greg Foran
Chief Executive Officer
25 August 2022
Inzaf
Cargo Airline Clerk

8
OUR SUSTAINABILITY JOURNEY
AIR NEW ZEALAND ANNUAL SHAREHOLDER REVIEW 2022AIR NEW ZEALAND GROUP
9OUR SUSTAINABILITY JOURNEY
Launched
Flight NZ0™ to
guide us and keep us
accountable on our
journey to net zero
carbon emissions
by 2050
New safety video –
‘Tiaki & The Guardians’
released, inviting
customers to care for
our land, people and
culture now and for
future generations
Commenced
a joint initiative with
Airbus to research
how green hydrogen-
powered aircraft
could operate in
New Zealand
Through the airline’s
voluntary carbon offsetting
programme, FlyNeutral,
customers donated over
$1 million to support positive
biodiversity outcomes in
New Zealand and permanently
offset over 55,000 tonnes
of CO
2
-e
Designed more
sustainable serviceware,
to be launched in October
2022, reducing the weight of
premium serviceware by up
to 20 percent and removing
over 28 million fossil fuel
derived single-use
plastic items
Issued a Zero Emissions
Aircraft Technology (ZEAT)
Product Requirements
Document inviting aircraft
developers to engage with
the airline in their
alternative propulsion
aircraft projects
3
To help Air New Zealand deliver on its promise of
taking care further than any other airline on earth,
we have driven forward a number of key initiatives
on our sustainability agenda throughout 2022.
In particular, we have made meaningful progress
on a range of opportunities to reach our net zero
carbon emissions by 2050 target. We know that
significant action is crucial to enable us to maintain
our social licence to operate.
We are proud of where we are at on our journey but
acknowledge there is still much to achieve.
In partnership
with the Government,
formally invited global
sustainable aviation
fuel (SAF) producers to
scope local production
opportunities
in New Zealand
2
Set a 2030
science-aligned
carbon reduction
target, endorsed by
the Science-Based
Targets initiative
(SBTi)
1

1011OUR SUSTAINABILITY JOURNEY
|
A YEAR IN THE AIR
AIR NEW ZEALAND ANNUAL SHAREHOLDER REVIEW 2022AIR NEW ZEALAND GROUP
A YEAR IN THE AIROUR SUSTAINABILITY JOURNEY (CONTINUED)
Air New Zealand sets an ambitious
2030 target, endorsed by the SBTi

This year, we became the second airline in the world
to announce an interim science-based target validated
by the SBTi, the global organisation responsible for
endorsing emissions reduction targets. Our 2030
target is to reduce carbon intensity by 28.9 percent,
compared to a 2019 baseline. This equates to a 16.3
percent reduction in absolute emissions and requires
us to reduce the carbon intensity associated with the
“well to wake” emissions (which is the end-to-end
fuel production process). These include emissions
from the use of jet fuel in-flight (scope 1 emissions)
as well as upstream emissions generated by the
production and distribution of that jet fuel (category 3,
scope 3 emissions).
Our 2030 target will act as a key milestone on our
journey to net zero carbon emissions by 2050 and
makes us accountable today. Implementing our
decarbonisation roadmap will be critical to achieving
this target – with SAF, zero emissions aircraft
technologies, continued fleet renewal and operational
efficiencies all playing a role.
To find out more, visit https://www.
airnewzealand.co.nz/press-release-
2022-airnz-second-airline-globally-to-
announce-ambitious-science-based-
emissions-reduction-target
Air New Zealand and the
Government join forces to consider
a domestic SAF industry
We believe the use of SAF on our long-haul flights is the
single biggest decarbonisation lever we can pull and
have a goal that 1 percent of our 2023 fuel uplift will be
SAF. We have also committed that 10 percent of our
2030 uplift will be SAF. However, there is currently no
local production in New Zealand largely due to the high
initial cost of establishing facilities and the ongoing
cost of production. As a result, SAF commands a
substantial price premium. We believe that with the
right policy and investment settings, production
in Aotearoa could be a game changer, making it a
commercially viable option for Air New Zealand and
the broader tourism industry.
In partnership with the Ministry of Business, Innovation
and Employment we launched a closed request for
proposals (RFP) process inviting sector innovators to
demonstrate the feasibility of SAF production in
New Zealand. We are currently reviewing these
submissions with a view to investigating the commercial
viability of select proposals shortly. Following this, it is
our hope that plant construction could commence,
and SAF could be available in New Zealand from 2027.
Commercially producing SAF would not only help
lower Air New Zealand’s emissions, but it would also
reduce emissions across the entire transport sector,
as well as create jobs and economic opportunities in
our regional communities.
To find out more, visit https://www.
airnewzealand.co.nz/press-release-
airnz-and-mbie-join-forces-to-scope-
out-sustainable-aviation-fuel-industry

ZEAT Product Requirements
Document released
New Zealand is uniquely placed to lead the world in
the deployment of ZEAT. Our domestic network is
made up of mostly short-range routes under two
hours duration, making it ideally suited to adopt
these technologies. New Zealand’s largely renewable
electricity grid also allows for cost effective
infrastructure to be established.
Our industry leading Zero Emissions Aircraft Product
Requirements Document (PRD) was released in
December 2021 and shares our vision for ZEAT
deployment. It allows current and future aircraft
developers to recognise both the opportunity here
in New Zealand and Air New Zealand’s ambition to
make this a reality as soon as possible. The PRD
provides an operator-specific set of principles
to guide aircraft developers in their alternative
propulsion aircraft projects and allows Air New
Zealand to understand technology readiness
and pinpoint technology leaders for ongoing
engagement. A zero emissions aircraft strategy has
been developed following comprehensive analysis
of submissions received under the PRD and
extensive engagement with respondents. Further
engagement with leading respondents will take
place to test the most viable opportunities.
To find out more, visit https://www.
airnewzealand.co.nz/press-release-
2021-seeking-innovators-next-gen-
aircraft
1.
2.
2022
by the numbers
WORLD’S SAFEST AIRLINE
#1
INTERNATIONAL ROUTES RELAUNCHED
27 of 29
FLIGHTS OPERATED
123,614
CUSTOMERS CARRIED ON OUR NETWORK
7,745,000
INFLIGHT MEALS SERVED TO CUSTOMERS
OUT OF TĀMAKI MAKARAU
JUST OVER
1 million
COOKIE TIME COOKIES MUNCHED
3.1 million
AIR NEW ZEALANDERS DOING
AMAZING THINGS
9,295
DOMESTIC FARES SOLD FOR UNDER $100
3.85 million
CUSTOMER CREDITS FULLY REDEEMED
690,000
HOURS SPENT MAINTAINING OUR FLEETS
926,000
ENGAGEMENTS ACROSS OUR
SOCIAL CHANNELS
1,692,630
KIWIS BROUGHT BACK INTO NEW ZEALAND
WHILE THE BORDERS WERE CLOSED
254 ,126
KILOGRAMS OF CARGO CARRIED AROUND
THE GLOBE
108 million
YEARS OF PARTNERSHIP WITH
DEPARTMENT OF CONSERVATION
10 awesome
NEW ROUTE ANNOUNCED – DIRECT FLIGHTS
FROM AUCKLAND TO NEW YORK CITY
1 exciting
WELCOMED INTO OUR FLEET – 1 ATR
AND 2 A320 NEOS
3 new aircraft
REOPENED AROUND THE GLOBE
25 lounges
KIWIS VACCINATED ON OUR 787 JABASEAT
VACCINATION CLINIC
300
ITEMS BOUGHT VIA THE AIRPOINTS
TM

STORE – UP FROM 200,000 LAST YEAR
250,000
PRODUCT REQUIREMENTS DOCUMENT RELEASED TO ACCELERATE
THE DEVELOPMENT OF ZERO EMISSIONS AIRCRAFT TECHNOLOGY
1 industry-leading
RAISED DURING OUR RECAPITALISATION
2.2 billion
ANNOUNCED FOR OUR FUTURE 787 CABIN
7 options
AIR NEW ZEALANDERS WELCOMED
INTO OUR WHĀNAU
1,500
MORE THAN
3.

13FINANCIAL COMMENTARY
AIR NEW ZEALAND ANNUAL SHAREHOLDER REVIEW 2022AIR NEW ZEALAND GROUP
FINANCIAL COMMENTARY
The impact of Covid-19 on
international and domestic
travel for the majority of
the 2022 financial year
resulted in Air New Zealand
reporting a loss before
other significant items and
taxation
1
of $725 million.
Including the impact of
other significant items,
statutory losses before
taxation were $810 million.
Revenue
Operating revenue for the year increased 8.6 percent
to $2.7 billion, driven by Cargo as well as improved
international passenger demand in the last financial
quarter following the staged opening of New Zealand’s
border from March 2022. These increases helped
offset the impact of reduced domestic passenger
flying throughout the majority of the year as a result
of local travel restrictions and Covid-19 related
disruptions. There was a nominal impact from foreign
exchange. Total capacity (Available Seat Kilometres,
ASK) including cargo-only flights, increased 15
percent compared to the same period last year, due to
additional demand for airfreight and support schemes
from the New Zealand and Australian Governments.
Passenger revenue remained stable at $1.5 billion,
as increased international flying following the staged
border opening was offset by reduced domestic
flying related to Covid-19. Excluding cargo-only
flights, capacity increased by 3.4 percent driven by
increased long-haul flying towards the end of the
year. Demand (Revenue Passenger Kilometres, RPK)
increased more than capacity, resulting in a load
factor of 67.1 percent, an increase of 9.8 percentage
points on the prior year. Revenue per Available Seat
Kilometre (RASK) decreased 2.9 percent excluding
FX and was impacted by a change in sector mix with
proportionately less shorter sector domestic flying
and more international flying.
International long-haul capacity increased 17 percent
(excluding cargo-only flights) as border openings
drove the return of passenger demand for North
America and Singapore in the latter part of the
year. Demand on international long-haul routes
increased 151 percent, with load factors increasing
30.7 percentage points to 57.5 percent. International
long-haul RASK increased by 37 percent and was only
nominally impacted by foreign exchange.
International short-haul capacity increased by 20
percent, as border openings drove more trans-Tasman
and Pacific Islands services. An increased schedule
of services was operated from March and April 2022
following the staged border openings. Demand
on international short-haul routes improved by 101
percent, with load factors increasing 29.2 percentage
points to 72.7 percent. International short-haul RASK
was up 72.5 percent and was only nominally impacted
by foreign exchange.
Domestic capacity decreased 10 percent, due to
various lockdowns, travel restrictions and infection
waves impacting passenger demand much more than
in the previous financial year. As a result, domestic
12
FINANCIAL COMMENTARY
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 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.
demand declined more than capacity at 19 percent,
with load factors decreasing by 7.3 percentage points
to 70.1 percent. Domestic RASK declined 10 percent
and was not impacted by foreign exchange.
Cargo revenue was $1.0 billion, an increase of 32
percent. Foreign exchange had a nominal impact.
The increase was driven by higher demand for
airfreight as well as additional scheduled flying
under the New Zealand and Australian Government’s
airfreight schemes (the Maintaining International
Air Connectivity scheme and the International
Freight Assistance Mechanism). This resulted in
cargo-only capacity increasing 19 percent compared
to the prior year. Freight yields also improved 4.0
percent, reflecting fewer international carriers in the
New Zealand market.
Contract services and other revenue was $242 million,
a decrease of 13 percent, driven primarily by reduced
maintenance activity on contracts for third-parties and
less passenger activity. There was a nominal impact
from foreign exchange.
Expenses
Operating expenditure increased by $555 million or
25 percent, to $2.7 billion with variable cost growth
reflecting the airline’s recovery ahead of the staged
border reopenings. Higher labour costs, increased jet
fuel prices and the absence of aviation subsidy support
– a feature of the prior corresponding period – all
contributed to the overall increase. Reported costs per
ASK (CASK) increased 9.1 percent, with a significant
increase in fuel price being the largest impact.
Victoria
Communications Manager
Olivia
Senior Brand
and Marketing Specialist
Johnny
Chapter Lead SA
Customer Direct Sales
and Service

15FINANCIAL COMMENTARY
AIR NEW ZEALAND GROUP
FINANCIAL COMMENTARY
14
AIR NEW ZEALAND ANNUAL SHAREHOLDER REVIEW 2022
FINANCIAL COMMENTARY (CONTINUED)
Underlying CASK, which excludes the impact of fuel
price, foreign exchange and third-party maintenance
as well as the absence of aviation subsidy support,
improved by 0.6 percent. This was largely due to a
change in the mix of network flying, with a greater
portion of lower cost, cargo-only flying.
Labour costs were $976 million, increasing by
$146 million or 18 percent. Foreign exchange had
no impact for the year. Full-Time Equivalent labour
(FTE) increased 13 percent to approximately 8,900
compared to the prior year representing 74 percent
of FTE labour compared to pre-Covid levels of
approximately 12,000. The increase in FTE was driven
by the recall and hiring of operational and support
workforces to build back capacity as travel restrictions
eased and routes relaunched. In addition to increased
staffing levels, salary increases, a provision for
incentive payments and employee recognition awards
contributed to the increased costs.
Fuel costs were $560 million, increasing by $249
million or 80 percent. Excluding the impact of
foreign exchange, fuel costs grew by 75 percent.
The increase was largely driven by a higher average
fuel price, which included the benefit of hedging, of
62 percent or $192 million. A 92 percent increase
in the underlying Singapore Jet fuel price, and to
a lesser extent, increases in the price of domestic
carbon offsets, drove $288 million of the additional
cost and were partially offset by an additional $96
million of hedging gains. Fuel consumption increased
14 percent in the year, due to the 15 percent increase
in capacity due to passenger and cargo-only flying,
resulting in an additional $41 million in costs.
A weaker New Zealand dollar also resulted in a fuel
cost increase of $16 million.
Aircraft operations, passenger services and
maintenance costs were $787 million, representing
an increase of $99 million, or 14 percent. Excluding
support received in the prior year under the
Government’s aviation support package, which did
not repeat in the current year, costs increased by
$41 million or 5.5 percent. Increased flying activity and
costs related to restarting the network largely drove
the increased costs across these areas.
Sales and marketing and other expenses were $412
million, growing $87 million or 27 percent reflecting
increased brand activity to support sales and borders
reopening, commissions and digital activity.
Ownership costs decreased by $49 million or 6.1
percent, driven by reduction in depreciation due
to impairment of grounded 777-300ER widebody
aircraft that occurred in the prior year and aircraft
offset by lower aircraft impairment charges, reduced
redundancy costs and lower losses on foreign
exchange hedging where the forecast transaction was
no longer expected to occur compared to the prior
year. A gain on sale of landing slots was not repeated
in the current year.
Cash and Financial Position
Cash on hand at 30 June 2022 was $1.8 billion, an
increase of $1.5 billion since the prior year. This
balance reflects the net proceeds from the airline’s
recapitalisation in May 2022, the remaining balance
of Redeemable Shares outstanding to the Crown and
cash flows from operating activities following the
announcement of border reopenings from March 2022,
partially offset by repayment of PAYE and FBT deferrals,
debt and lease payments and new aircraft purchases.
In May 2022, the airline completed a capital raise
consisting of approximately $1.2 billion of ordinary
equity and $600 million of unsecured debt, as well
as a new $400 million undrawn Crown Facility.
Proceeds from the capital raise were used to
repay $850 million of the previous Crown Facility,
exits, partially offset by A320neo and ATR aircraft
deliveries. Excluding the benefit of foreign exchange,
ownership costs decreased by 4.4 percent.
The impact of foreign exchange rate changes on the
revenue and cost base in the period resulted in a
unfavourable foreign exchange movement of $6 million.
After taking into account a $26 million favourable
movement in hedging, overall foreign exchange had
a net $20 million positive impact on the Group result
for the period.
Share of Earnings of Associates
Share of earnings of associates increased by $8 million
to $27 million for the year, reflecting higher engine
volumes and mix of maintenance work being serviced
by the Christchurch Engine Centre.
Other Significant Items
Other significant items represented a loss of $85 million
during the year, a decrease of $114 million relative to
the prior year. These items relate to unrealised foreign
exchange losses on foreign denominated debt of
$186 million, the impairment of software of $24 million
strengthen the balance sheet, improve liquidity and
position the airline for recovery from the pandemic.
Operating cash flows were a net inflow of $550 million,
reflecting favourable working capital movements
including revenue received for ticket sales in advance
of flying, partially offset by a deterioration in cash
earnings resulting from travel restrictions across
most of the financial year and repayment of PAYE
and FBT deferrals.
Net gearing improved 25.7 percentage points to
45.4 percent compared to 30 June 2021, driven by
the equity raise and partially offset by net losses after
taxation, investment in the airline’s fleet and foreign
exchange movements.
The Directors have not declared a final dividend for the
2022 financial year, choosing to focus on preserving
liquidity while continuing to navigate the airline through
the post pandemic recovery. The Board does not
expect to consider payment of dividends before the
airline achieves a consistent recovery in earnings.
Dawnea
Flight Attendant

17CHANGE IN PROFITABILITY
|
FINANCIAL SUMMARY
AIR NEW ZEALAND ANNUAL SHAREHOLDER REVIEW 2022AIR NEW ZEALAND GROUP
Financial Performance

12 MONTHS TO
30 JUNE 2022
$M
R E S TAT E D
12 MONTHS TO
30 JUNE 2021
$M
Operating Revenue
Passenger revenue
Cargo
Contract services and other revenue
1,476
1,016
242
1,470
769
278
Operating Expenditure
Labour
Fuel
Maintenance
Aircraft operations
Passenger services
Sales and marketing
Foreign exchange losses
Other expenses
2,73 4
(976)
(560)
(259)
(412)
(116)
(131)
(3)
(281)
2,517
(830)
(311)
(254)
(350)
(84)
(73)
(29)
(252)
(2,738) (2,183)
Operating Earnings (excluding items below)
Depreciation and amortisation
Net finance costs
Share of earnings of associates (net of taxation)
(4)
(668)
(80)
27
334
(715)
(82)
19
Loss Before Other Significant Items and Taxation
Other significant items
(725)
(85)
(444)
29
Loss Before Taxation
Taxation credit
(810)
219
(415)
123
Net Loss Attributable to Shareholders of Parent Company(591) (292)
Net tangible assets per share (cents) 39 86
Cash Flows

12 MONTHS TO
30 JUNE 2022
$M
R E S TAT E D
12 MONTHS TO
30 JUNE 2021
$M
Cash inflows from operating activities
Cash outflows from operating activities
3,360
(2,810)
2,517
(2,199)
Net cash flow from operating activities
Net cash flow from investing activities
Net cash flow from financing activities
550
(331)
1,308
318
(177)
(313)
Increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
1,527
266
(172)
438
Cash and Cash Equivalents at the End of the Year1,793266
FINANCIAL SUMMARY
16
The key changes in earnings, 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 2021
loss before taxation
Passenger capacity
$49m
- Capacity increased by 3 percent (excluding cargo-only flights) due to relaxation of travel
restrictions and reopening of borders. Including cargo-only flights capacity increased by
15 percent.
- Domestic capacity declined by 10 percent reflecting nationwide lockdowns and extended
non-essential travel restrictions in the Auckland region, as well as the occurrence of multiple
Covid-19 infection waves.
- International short-haul capacity increased by 20 percent. Border restrictions and isolation
requirements reduced scheduled services for most of the year. Staged border reopenings
and relaxation of travel restrictions saw strong customer demand and an increase in passenger
services from March 2022.
- International long-haul capacity increased 17 percent due to the removal of travel restrictions
and border reopenings in the latter half of the 2022 financial year.
Passenger RASK
-$43m
- Domestic Revenue per Available Seat Kilometre (RASK) declined by 10 percent excluding
FX and loads declined 7.3 percentage points to 70.1 percent as a result of domestic travel
restrictions and disruptions.
- International short-haul RASK improved by 72.5 percent excluding FX and loads increased
29.2 percentage points to 72.7 percent.
- International long-haul RASK improved by 37 percent excluding FX and loads increased
30.7 percentage points to 57.5 percent as borders reopened and customer demand improved
in the second half of 2022. In earlier periods limited passenger services, primarily for essential
travel and repatriations, supplemented cargo services.
- Overall Group RASK declined 2.9 percent excluding FX and was impacted by a change in mix
of network flying in the current year from shorter sectors towards longer international sectors.
Loads increased by 9.8 percentage points to 67.1 percent.
Cargo revenue
$247m
- Cargo revenue improved due to increased capacity as a result of more international widebody
flying, higher customer demand and additional cargo-only scheduled flights awarded by the
New Zealand and Australian Governments under the airfreight schemes.
Contract services and
other revenue
-$38m
- Reduced maintenance work for third-parties and border restrictions reduced customer activity.
Labour
-$146m
- Higher staffing levels due to an increase in operational activity, reinstatement of performance
incentives, employee recognition awards and reduced Government wage subsidies.
Fuel
-$233m
- Singapore Jet price increased by 92 percent. The average fuel price net of hedging increased 54
percent compared to the prior year resulting in an increase in costs of $192 million. Consumption
increased by 14 percent ($41 million) compared to an increase in capacity of 15 percent.
Maintenance, aircraft
operations and
passenger services
-$38m
- Higher costs related to an increase in flying activity and recommencement of international routes.
Aviation support package
-$59m
- Receipt of aviation relief package subsidies in the prior year not repeated in the current year.
Sales and marketing
and other expenses
-$83m
- Higher brand spend to support sales activity and route relaunches as well as increased
commissions and digital activity.
Ownership costs
$35m
- Decrease in depreciation reflecting impairment of grounded widebody aircraft in the prior year
and aircraft exits partially offset by new aircraft deliveries.
Net impact of foreign
exchange movements
$20m
- Net favourable impact of foreign exchange from reduced hedging losses offset by currency
movements on revenue and costs.
Share of earnings of
associates
$8m
- Increase in earnings from Christchurch Engine Centre driven by higher engine volumes and
heavier mix of maintenance visits.
Other significant items
-$114m
- Reduction in foreign exchange gains on uncovered debt, software impairment and gain on sale
of landing slots in the prior year partially offset by reduced reorganisation costs, lower aircraft
impairment and lease modification costs and a decrease in de-designation of hedges as a result
of forecast transactions no longer being expected to occur.
June 2022
loss before taxation
-$415m
-$810m
CHANGE IN PROFITABILITY

Profi t drivers
Grow
Domestic
Profitably grow and enhance our iconic
domestic offering, providing New
Zealanders with even more choice as the
best-connected country in the world
Optimise
International
Connecting New Zealanders and
our exports to the world through an
optimal international network and
premium leisure product
Lift
Loyalty
Increase products and benefits
members value from our Airpoints™
programme, supercharging the loyalty
ecosystem for the airline
Our Kia Mau strategy is focused on 3 clear drivers
of value creation, executed through excellence
and innovation across 4 key business enablers.
Enabled by strong culture and focused investment
Brilliant
Basics
Operational excellence that
provides a seamless travel
experience for our customers –
do it right, first time, every time
Serious about
Sustainability
Committed to meaningful
action to reduce our
carbon impact
Digital
Dexterity
Technology focused on delivering
a world-class experience for
our people and customers while
driving efficiencies
Prioritising
People & Safety
Putting people, health
and safety first
19FINANCIAL POSITION
|
KIA MAU STRATEGY
AIR NEW ZEALAND GROUP
18
Financial Position
A S AT

30 JUNE 2022
$M
R E S TAT E D
30 JUNE 2021
$M
Bank and short-term deposits
Trade and other receivables
Inventories
Derivative financial assets
Other assets
1,793
363
98
165
78
266
252
92
79
137
Total Current Assets2,497826
Trade and other receivables
Property, plant and equipment
Right of use assets
Intangible assets
Investments in other entities
Derivative financial assets
Deferred taxation
Other assets
36
3,190
1,617
147
164
143
164
392
92
3,128
1,989
169
138
-
-
342
Total Non-Current Assets5,8535,858
Total Assets8,3506,684
Trade and other payables
Revenue in advance
Interest-bearing liabilities
Lease liabilities
Derivative financial liabilities
Provisions
Income taxation
Other liabilities
497
1,635
248
342
63
169
2
215

524
689
524
383
11
58
-
164
Total Current Liabilities3,1712,353
Revenue in advance
Interest-bearing liabilities
Derivative financial liabilities
Lease liabilities
Redeemable shares
Provisions
Other liabilities
Deferred taxation
219
1,595
159
1,183
200
118
28
-
503
1,023
-
1,378
-
241
30
58
Total Non-Current Liabilities3,5023,233
Total Liabilities6,6735,586
Net Assets 1,6771,098

Share capital
Reserves
3,373
(1,696)
2,213
(1,115)
Total Equity1,6771,098
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 25 August 2022, 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 2022
FINANCIAL POSITION

---

ANNUAL
FINANCIAL
R E S U LT S
2022

AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2022

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 2022.
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 2022 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 Alison Gerry
Chair Director
25 August 2022
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 12
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. Redeemable Shares 27
18. Provisions 27
19. Other Liabilities 28
20. Share Capital 29
21. Reserves 31
22. Commitments 31
23. Contingent Liabilities 32
24. Financial Risk Management 32
25. Offsetting Financial Assets and Financial Liabilities 41
26. Related Parties 42
27. Impact of New Accounting Interpretations 44
Independent Auditor’s Report 46
Five Year Statistical Review 50
Corporate Governance Statement 54
Employee Remuneration 67
Remuneration Report 68
Climate-Related Disclosures 71
Interests Register 81
Directors’ Interests in Air New Zealand Securities 82
Indemnities and Insurance 82
Subsidiary and Joint Venture Companies 83
Other Disclosures 84
Operating Fleet Statistics 85
Securities Statistics 86
General Information 88
Shareholder Directory IBC
AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2022
* This document, in conjunction with the Air New Zealand Annual Shareholder Review 2022,
constitutes the 2022 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 2022
STATEMENT OF FINANCIAL PERFORMANCE
FOR THE YEAR TO 30 JUNE 2022
NOTES

2022
$M
R E S TAT E D
2021
$M
Operating Revenue
Passenger revenue
Cargo
Contract services
Other revenue

1,476
1,016
117
125

1,470
769
161
117
Operating Expenditure
Labour
Fuel
Maintenance
Aircraft operations
Passenger services
Sales and marketing
Foreign exchange losses
Other expenses
1 2,73 4
(976)
(560)
(259)
(412)
(116)
(131)
(3)
(281)
2,517
(830)
(311)
(254)
(350)
(84)
(73)
(29)
(252)
2(2,738) (2,183)
Operating Earnings (excluding items below)
Depreciation and amortisation
(4)
(668)
334
(715)
Loss Before Finance Costs, Associates, Other Significant Items and Taxation
Finance income
Finance costs
Share of earnings of associates (net of taxation)13
(672)
14
(94)
27
(381)
8
(90)
19
Loss Before Other Significant Items and Taxation
Other significant items3
(725)
(85)
(444)
29
Loss Before Taxation
Taxation credit4
(810)
219
(415)
123
Net Loss Attributable to Shareholders of Parent Company(591) (292)
Per Share Information:
Basic and diluted earnings per share (cents)
Net tangible assets per share (cents)
5(40.8)
39
(26.0)
86

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 2022
NOTE

2022
$M
R E S TAT E D
2021
$M
Net Loss for the Year
Other Comprehensive Income:
Items that will not be reclassified to profit or loss:
Actuarial (losses)/gains on defined benefit plans
Taxation on above reserve movements4
(591)
(5)
1
(292)
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 gain/(loss) on investment in foreign operations
Changes in cost of hedging reserve
Taxation on above reserve movements
(4)
111
(96)
3
(5)
1
4
64
35
(3)
4
(32)
Total items that may be reclassified subsequently to profit or loss1468
Total Other Comprehensive Income for the Year, Net of Taxation1072
Total Comprehensive Loss for the Year, Attributable to Shareholders of the Parent Company(581)(220)

The accompanying accounting policies and notes form part of these financial statements.4
AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2022
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR TO 30 JUNE 2022
NOTES
SHARE
CAPITAL
$M
HEDGE
RESERVES
$M
FOREIGN
CURRENCY
TRANSLATION
RESERVE
$M
R E S TAT E D
GENERAL
RESERVES
$M
R E S TAT E D
TOTAL
EQUITY
$M
Balance as at 1 July 20212,213(49)(17)(1,042)1,105
Application of IFRIC interpretation27---(7)(7)
Restated balance as at 1 July 20212,213(49)(17)(1,049)1,098
Net loss for the year
Other comprehensive income for the year
-
-
-
7
-
7
(591)
(4)
(591)
10
Total Comprehensive Loss for the Year - 7 7(595) (581)
Transactions with Owners:
Shares issued
Equity-settled share-based payments (net of taxation)
Equity settlements of staff share award obligations
20
4, 20
20
1,156
8
(4)
-
-
-
-
-
-
-
-
-
1,156
8
(4)
Total Transactions with Owners 1,160 - - -1,160
Balance as at 30 June 2022 3,373 (42) (10) (1,644) 1,677
NOTES
SHARE
CAPITAL
$M
HEDGE
RESERVES
$M
FOREIGN
CURRENCY
TRANSLATION
RESERVE
$M
R E S TAT E D
GENERAL
RESERVES
$M
R E S TAT E D
TOTAL
EQUITY
$M
Balance as at 1 July 20202,209(123)(11)(757)1,318
Application of IFRIC interpretation27---(4)(4)
Restated balance as at 1 July 20202,209(123)(11)(761)1,314
Net loss for the year
Other comprehensive income for the year
-
-
-
74
-
(6)
(292)
4
(292)
72
Total Comprehensive Loss for the Year - 74 (6) (288) (220)
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) (1,049) 1,098

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

2022
$M
R E S TAT E D
2021
$M
Current Assets
Bank and short-term deposits
Trade and other receivables
Inventories
Derivative financial assets
Other assets
6
7
8
24
9

1,793
363
98
165
78

266
252
92
79
137
Total Current Assets 2,497 826
Non-Current Assets
Trade and other receivables
Property, plant and equipment
Right of use assets
Intangible assets
Investments in other entities
Derivative financial assets
Deferred taxation
Other assets
7
10
11
12
13
24
4
9

36
3,190
1,617
147
164
143
164
392
92
3,128
1,989
169
138
-
-
342
Total Non-Current Assets 5,853 5,858
Total Assets 8,350 6,684
Current Liabilities
Trade and other payables
Revenue in advance
Interest-bearing liabilities
Lease liabilities
Derivative financial liabilities
Provisions
Income taxation
Other liabilities
14
15
16
24
18
19
497
1,635
248
342
63
169
2
215
524
689
524
383
11
58
-
164
Total Current Liabilities 3,171 2,353
Non-Current Liabilities
Revenue in advance
Interest-bearing liabilities
Derivative financial liabilities
Lease liabilities
Redeemable shares
Provisions
Other liabilities
Deferred taxation
14
15
24
16
17
18
19
4

219
1,595
159
1,183
200
118
28
-
503
1,023
-
1,378
-
241
30
58
Total Non-Current Liabilities 3,502 3,233
Total Liabilities 6,673 5,586
Net Assets 1,677 1,098
Equity
Share capital
Reserves
20
21
3,373
(1,696)
2,213
(1,115)
Total Equity 1,677 1,098

Dame Therese Walsh
Chair
For and on behalf of the Board, 25 August 2022
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2022
Alison Gerry
Director

The accompanying accounting policies and notes form part of these financial statements.6
AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2022
NOTES

2022
$M
R E S TAT E D
2021
$M
Cash Flows from Operating Activities
Receipts from customers
Payments to suppliers and employees
Income tax refunded
Interest paid
Interest received

3,353
(2,736)
-
( 74)
7

2,471
(2,116)
35
(83)
11
Net Cash Flow from Operating Activities6550318
Cash Flows from Investing Activities
Disposal of property, plant and equipment, intangibles and assets held for resale
Distribution from associates
Acquisition of property, plant and equipment, right of use assets and intangibles
Interest-bearing asset (payments)/receipts
Investment in associate
Investment in other entities
26
26
14
32
(327)
(34)
(12)
(4)
10
38
(226)
9
(8)
-
Net Cash Flow from Investing Activities(331)(177)
Cash Flows from Financing Activities
Ordinary Shares issued
Redeemable Shares issued
Interest-bearing liabilities drawdowns
Rollover of foreign exchange contracts*
Redemption of Redeemable Shares
Equity settlements of staff share award obligations
Interest-bearing liabilities payments
Lease liabilities payments
20
26
26
20
16
1,156
600
1,277
36
(400)
(4)
(1,030)
(327)
-
-
380
(184)
-
-
(178)
(331)
Net Cash Flow from Financing Activities 1,308 (313)
Increase/(Decrease) in Cash and Cash Equivalents
Cash and cash equivalents at the beginning of the year
1,527
266
(172)
438
Cash and Cash Equivalents at the End of the Year6 1,793 266
*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 2022

7
STATEMENT OF ACCOUNTING POLICIES
FOR THE YEAR TO 30 JUNE 2022
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 25 August 2022.
Impact of Covid-19
During the Covid-19 pandemic the Group significantly reduced its network as demand declined following border closures and international
travel restrictions. In response to the impact, the Group took a number of 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.
Liquidity was supported by cancelling a significant amount of non-essential spend and deferring 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. Under the arrangement the Group deferred $298 million of FBT and PAYE repayments
(30 June 2021: $254 million). The FBT and PAYE liabilities arising during this period were repaid in January 2022 to March 2022.
In February and March 2022 the New Zealand Government made a series of announcements regarding the relaxation of travel restrictions
into New Zealand which commenced from April and May 2022. Following these announcements, the airline experienced increased
bookings for international travel which has resulted in stronger cash inflows from customer activity compared to the first six months of the
2022 financial year.
A debt funding arrangement with the New Zealand Government (CSF1 Loan Facility) was secured and amended in the prior year as the
impact of the pandemic progressed, to support the future business operations. In December 2021, the airline announced a revised Crown
support package, which gave the Group the ability to issue up to $1 billion of non-voting Redeemable Shares to the Crown and reduced
the CSF1 Loan Facility from $1.5 billion to $1 billion, with an extended term to January 2026. The Group was able to call for the Crown to
subscribe for up to $1 billion of Redeemable Shares once at least $850 million was drawn under the CSF1 Loan Facility. During the year, the
Group made further draw downs of $500 million under the CSF1 Loan Facility (30 June 2021: $350 million).
On 30 March 2022 the Group announced a $2.2 billion recapitalisation package to help position the airline for recovery. The package
included a pro rata renounceable Rights Offer to raise $1.2 billion of new Ordinary Shares as well as the issue of $600 million of
Redeemable Shares to the Crown and a new committed unsecured 4 year Crown loan facility of $400 million.
The Rights Offer commenced on 6 April 2022 and the shares were allotted on 9 May 2022. It allowed eligible shareholders an opportunity
to buy additional shares in the Group at a discount relative to the prevailing share price. Proceeds received from the capital raise were
partly used to repay $850 million drawn down under the CSF1 Loan Facility. Upon repayment of all outstanding amounts under the CSF1
Loan Facility arrangement, the facility was cancelled.
On 7 April 2022 the Group issued to the Crown $150 million of Redeemable Shares and on 6 May 2022 a further $450 million (refer Note 26
for further details).
On 30 March 2022 a new unsecured committed revolving loan facility (CSF2 Loan Facility) was entered into with the Crown for up to $400
million for a period through to 30 January 2026 for the purpose of providing additional liquidity, if required, as the airline recovers from
the effects of the pandemic. Further details are contained in Note 26. In addition, the Group issued unsecured, unsubordinated Australian
Medium Term Notes on 25 May 2022. Australian Medium Term Notes of AUD$300 million have a maturity date of 25 May 2026 and
AUD$250 million have a maturity date of 25 May 2029. Proceeds from the Australian Medium Term Notes were used to repay $400 million
of Redeemable Shares. As at 30 June 2022, $200 million of Redeemable Shares remained on issue.
Given the completion of an equity capital raise, the issue of the Australian Medium Term Notes, the entering into the CSF2 Loan Facility
with the Crown, and 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, a going concern basis has been adopted in the preparation of the
financial statements.

8
STATEMENT OF ACCOUNTING POLICIES CONTINUED
FOR THE YEAR TO 30 JUNE 2022
AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2022
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.
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
Revenue in advance Note 1 Revenue recognition and segmental information
Note 14 Revenue in advance
Aircraft lease return provisions Note 18 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
Taxation Note 10 Taxation
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.
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. The interpretation has
been applied retrospectively and comparative information within the financial statements restated accordingly. Further details are set out
in Note 27.
The following NZ IFRSs and Interpretations, which have been issued but are not yet effective, have been identified as those that may
impact Air New Zealand in the period of their initial application, and have not yet been adopted by the Group:
NZ IFRS 17 - Insurance Contracts has not been adopted early. It provides consistent principles for all aspects of accounting for insurance
contracts. This standard, which becomes effective for annual periods commencing on or after 1 January 2023, will not have a significant
impact on the financial statements.
The External Reporting Board (‘XRB’) of New Zealand is currently developing reporting standards to support mandatory reporting on
climate risks. The XRB intends to issue a climate-related disclosure framework: Aotearoa New Zealand Climate Standards with three
Climate Standards being issued that set requirements for: Climate-related Disclosures; First-time adoption; and General Requirements
for Disclosures. The disclosure areas are expected to be in line with the international Task Force on Climate-related Disclosures (‘TCFD’),
being Governance, Strategy, Risk Management and Metrics & Targets.
The XRB anticipates issuing standards by December 2022. The first climate statement required under these new standards is expected
to be as at 30 June 2024, with mandatory assurance required on the Greenhouse Gas emissions included in the climate statements for
the 2025 Annual Report. The Group currently prepares separate voluntary Climate-related Financial Disclosures that follow the principles
outlined in the TCFD which do not form part of the Group financial statements.
The significant accounting policies which are pervasive throughout the financial statements are set out below. Other significant
accounting policies which are specific to certain transactions or balances are set out within the particular note to which they relate.

9
STATEMENT OF ACCOUNTING POLICIES CONTINUED
FOR THE YEAR TO 30 JUNE 2022
AIR NEW ZEALAND GROUP
Basis of consolidation
The consolidated financial statements include those of Air New Zealand Limited and its subsidiaries, accounted for using the acquisition
method, and the results of its associates and joint ventures, accounted for using the equity method.
All material intercompany transactions, balances and unrealised gains on transactions between group companies are eliminated on
consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Unrealised gains on transactions between the Group, joint ventures and its associates are eliminated to the extent of the Group’s interest in
the joint ventures and associates.
Where a business combination is achieved in stages, previously held equity interests in the acquiree are remeasured to fair value at the
acquisition date and any corresponding gain or loss is recognised in the Statement of Financial Performance.
Foreign currency translation
Functional currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic
environment in which the entity operates (the “functional currency”).
Transactions and balances
Foreign currency transactions are converted into the relevant functional currency using exchange rates approximating those at transaction
date. Monetary assets and liabilities denominated in foreign currencies at balance date are translated at the exchange rate at that date.
Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange
rate at the date of the transaction. Foreign exchange gains or losses are recognised in the Statement of Financial Performance, except
when deferred in equity as qualifying cash flow hedges and qualifying net investment hedges.
Group companies
The results and financial position of all group entities that have a functional currency different from the presentation currency are
translated into the presentation currency as follows:
(a) assets and liabilities are translated at the closing rate at the reporting date;
(b) income and expenses are translated at exchange rates approximating those at transaction date; and
(c) all resulting exchange differences are recognised as a separate component of equity and in Other Comprehensive Income
(within Foreign Currency Translation Reserve).
On consolidation, exchange differences arising from the translation of the net investment in foreign entities, and of borrowings and other
currency instruments designated as hedges of such investments, are taken to equity.
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 2022
AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2022
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
Revenue 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
2022
$M
2021
$M
Cargo government grants and assistance:
- New Zealand
- Other regions

370
33

321
12
Total cargo grants and assistance 403333
The Group was awarded grants to supply international airfreight services by 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 March 2023. The awards were
negotiated on an arm’s length basis using standard commercial terms. Conditions attached to the grants recognised in the Statement of
Financial Performance have been satisfied as at balance date.
The Group was awarded from August 2020 to June 2022 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. Conditions attached to the award recognised in the Statement of Financial
Performance have been satisfied as at balance date.

11
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR TO 30 JUNE 2022
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.
2022
$M
2021
$M
Analysis of revenue by geographical region of original sale
New Zealand
Australia and Pacific Islands
Asia, United Kingdom and Europe
America
2,031
221
247
235
2,033
153
163
168
Total operating revenue 2,734 2,517
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:
2022
$M
2021
$M
Superannuation expense
Audit and review of financial statements*
42
1
41
1
* In addition to fees paid for the audit and review of the financial statements of $1,422k (30 June 2021: $1,225k), other fees were paid
for assurance engagements including the student fee protection audit of $5k (30 June 2021: $5k) and Greenhouse Gas inventory
review of $20k (30 June 2021: Nil). The Group also paid $17k to Deloitte for administrative and other advisory services provided to the
Corporate Taxpayers Group for which Air New Zealand, alongside a number of other organisations, is a member (30 June 2021: $17k).
The prior financial year also included fees for a US Passenger Facility Charge audit of $22k.
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.
2022
$M
2021
$M
Government grants and subsidies recognised in the Statement of Financial Performance include:
Wage subsidies (recognised within ‘Labour’)
- New Zealand
- Other regions

48
1

52
4
Total wage subsidies
Aviation support grant (recognised within ‘Passenger services’)
Aviation support grant (recognised within ‘Aircraft operations’)
Aviation support grant (recognised within ‘Other expenses’)
49
-
-
-
56
18
40
1
Total aviation support grant - 59
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 were satisfied.

12
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR TO 30 JUNE 2022
AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2022
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.
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.
2022
$M
2021
$M
Foreign exchange (losses)/gains on uncovered interest-bearing liabilities and lease liabilities
Foreign exchange amounts transferred from the cash flow hedge reserve where the forecast
transaction is no longer expected to occur
Aircraft impairment and lease modifications
Impairment of intangible asset
Reorganisation costs
Gain on sale of landing slots
(43)

(13)
(6)
(24)
1
-
143

(18)
(78)
-
(39)
21
(85) 29
Foreign exchange (losses)/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.
Foreign exchange 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. 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 and operating expenditure. A number of foreign currency operating
revenue and expenditure transactions were de-designated. Where the forecast hedged transaction was no longer expected to occur, the
associated accumulated gains or losses were transferred from the cash flow hedge reserve to the Statement of Financial Performance.
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 in prior years, the Boeing
777-200ER fleet and one Boeing 777-300ER aircraft were grounded for an indefinite period into the future. The Group has since
commenced a reactivation programme for the Boeing 777-300ER aircraft which re-entered service in August 2022. The impairment
provision held in relation to the Boeing 777-300ER aircraft was reversed as at 30 June 2022.
The aircraft and other associated assets were assessed for impairment to determine the recoverable amount based on the fair
value less costs to sell. Fair values were determined based on external market valuations. Net impairment expense of $4 million was
recognised in the Statement of Financial Performance in relation to these aircraft (30 June 2021: $58 million). In the prior year ended
30 June 2021 losses arising on lease modifications of $5 million were recognised in respect of these aircraft. Further details are set out
in Notes 10 and 11.
In prior years the Company exited from service the ATR72-500 fleet following a scheduled fleet replacement. As at 30 June 2021
five aircraft were classified as 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. The aircraft were disposed or parted-out in the 2022 financial year. An impairment expense of $2 million was
recognised during the year ended 30 June 2022 (30 June 2021: $15 million).
Impairment of intangible asset
The Group undertook, over a number of years, a software development project related to implementing an aircrew management
system. During the 2022 financial year the Group ceased development of a software programme associated with turboprop-related
aspects of the aircrew management system due to the high degree of complexity and expected delivery timeframes. The asset was fully
written down with an impairment expense of $24 million recognised against the capital work in progress (within ‘Intangible Assets’).
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 in the prior year of over 4,000 staff, with redundancy costs being recognised over the period
including within the year ended 30 June 2021. In the 2022 financial year redundancy provisions of $1 million were released following the
recall of staff as a result of a recovery in customer demand.
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 were received in December 2019. The gain on sale of $21 million was recognised in the
year ended 30 June 2021 upon formal transfer of the slots to the purchaser.
4 . Ta x a t i o n

13
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR TO AND AS AT 30 JUNE 2022
AIR NEW ZEALAND GROUP
4. Taxation (continued)
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.
2022
$M
2021
$M
Current taxation (expense)/credit
Current year (2) 33

Deferred taxation credit
Origination of temporary differences
Unused tax losses
(2)
29
192
33
(24)
114
22190
Total taxation credit recognised in earnings 219123

Reconciliation of effective tax rate
Loss before taxation (810) (415)
Taxation at 28%
Adjustments
Non-deductible expenses
Non-taxable income
Equity settlements
Reinstatement of tax depreciation on buildings
Other
227
(4)
1
-
-
(5)
116
(1)
6
(1)
3
-
Taxation credit 219123
The Group has $40 million of imputation credits as at 30 June 2022 (30 June 2021: $39 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 2020 7 289(66) (51)(1) - (61)117
Application of IFRIC interpretation(2)------(2)
Restated as at 1 July 2020
Amounts recognised in Other
Comprehensive Income
Amounts recognised in earnings
5
-
(9)
289
-
29
(66)
-
7
(51)

31
-
(1)

2
(1)
-
-
(2)
(61)

-
(114)
115
33
(90)
As at 30 June 2021 (4) 318(59) (20) -(2)(175)58
Amounts recognised in Other
Comprehensive Income
Amounts recognised in earnings
-
(10)
-
(17)
-
(4)
-
-
(1)
-
-
2
-
(192)
(1)
(221)
As at 30 June 2022 (14)301(63)(20)(1)-(367)(164)
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.
The Group is carrying forward $1,311 million of tax losses (30 June 2021: $625 million) that are available indefinitely for offsetting
against future taxable income. A deferred tax asset of $367 million (30 June 2021: $175 million) has been recognised in respect of
these losses as there are taxable temporary differences against which the tax losses can be offset. The Board considers it probable
that there will be sufficient future taxable profits against which the carried forward tax losses can be utilised.

14
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR TO AND AS AT 30 JUNE 2022
AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2022
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.
2022
$M
2021
$M
Earnings for the purpose of basic and diluted earnings per share:
Net loss attributable to shareholders(591) (292)

Weighted average number of shares (in millions of shares)
Weighted average number of Ordinary Shares for basic and diluted earnings per share 1,449 1,123

Basic and diluted earnings per share (40.8) (26.0)
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:
2022
$M
2021
$M
Cash balances
Other short-term deposits and short-term bills
73
1,720
44
222
Total cash and cash equivalents 1,793 266

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/(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
(591)
668
11
30
(27)
(10)
43

13
8
13
(292)
715
12
73
(19)
(21)
(143)

18
3
6

Net working capital movements:
Assets
Revenue in advance
Liabilities
158
(52)
662
(218)
352
98
(127)
(5)
392(34)
Net cash flow from operating activities 550 318

15
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
AS AT 30 JUNE 2022
AIR NEW ZEALAND GROUP
7. Trade and Other Receivables
Trade and other receivables are recognised at cost less any provision for lifetime expected credit losses. Bad debts are
written-off when they are considered to have become uncollectable.
2022
$M
2021
$M
Current
Trade and other receivables
Prepayments

313
50

192
60
363252

Non-current
Other receivables
Prepayments
-
36
39
53
3692
Expected credit loss provisions of $4 million were recognised as at 30 June 2022 (30 June 2021: $4 million).
8. Inventories
Inventories are measured at the lower of cost and net realisable value. Cost is determined using the first-in, first-out
(FIFO) cost method. Net realisable value is the estimated selling price in the ordinary course of business, less applicable
selling expenses.
2022
$M
2021
$M
Engineering expendables
Consumable stores
81
17
73
19
9892

Held at cost

Held initially at cost
Less provision for inventory obsolescence
83
73
(58)
78
74
(60)
Held at net realisable value 15 14
9892

16
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
AS AT 30 JUNE 2022
AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2022
9. Other Assets
Amounts owing from related parties
Amounts owing from related parties are recognised at cost less any provision for expected credit losses.
Contract work in progress
Contract work in progress is stated at cost plus the profit recognised to date, using the cost input method, less any
amounts invoiced to customers. Cost includes all expenses directly related to specific contracts and an allocation of direct
production overhead expenses incurred. Amounts are invoiced as work progresses in accordance with contractual terms,
either at periodic intervals or upon achievement of contractual milestones.
Interest-bearing assets
Interest-bearing assets are measured at amortised cost using the effective interest method, less any impairment.
Assets held for resale
Non-current assets are classified as held for resale if their carrying amount will be recovered through a sale transaction
rather than through continuing use. The sale must be highly probable and the asset available for immediate sale in its
present condition. Non-current assets held for resale are measured at the lower of the asset’s previous carrying amount
and its fair value less costs to sell.
Carbon credits
Carbon credit units are intangible in nature and stated at cost less accumulated impairment losses. Carbon credits are
based on a first-in, first-out cost method.
2022
$M
2021
$M
Current
Contract work in progress
Assets held for resale
Carbon credits
Other assets (including defined benefit assets)

40
13
21
4

74
48
13
2
78137

Non-current
Interest-bearing assets
Carbon credits
Other assets
360
27
5
324
11
7
392342
The carrying value of the assets held for resale reflects the lower of their previous carrying value at the date of transfer or external
market assessments of the fair value, less costs to sell. In the prior year the Group exited from service four Boeing 777-200ER
aircraft, three spare engines and other associated assets which were not expected to return to operation in the Air New Zealand
fleet. The market values were obtained from an external valuer which equated to level 2 on the fair value hierarchy. Key inputs into
the external valuations included economic factors, the age and manufacture type of the aircraft and engines and the maintenance
condition of the aircraft.
In the 2020 financial year the Group exited from service the ATR72-500 fleet following a scheduled replacement. As at 30 June 2021
five aircraft were being marketed for sale. The aircraft were disposed or parted-out during the 2022 financial year. Spares related to
exited fleets are being marketed for sale and it is expected that proceeds will be received over the next three years.
Interest-bearing assets include fixed rate Term Deposits and floating rate Certificate of Deposits that have been provided as
security over credit card obligations incurred by Air New Zealand and standby letters of credit and other financial guarantees issued
to third parties. Certain deposits are subject to offsetting under a security deed and remain in force until specifically released by
the secured party. For other deposits, a minimum notification period of twelve months is required to be given prior to the security
deposits being released. These deposits are subject to potential offsetting under master netting arrangements. In addition, the
Group holds Euro fixed rate deposits that mature between September 2030 and September 2031 held as part of aircraft financing
arrangements. Fixed interest rates in the year to 30 June 2022 were between 0.04% and 3.60% per annum (30 June 2021: 0.01% to
3.60% per annum). The fair value of interest-bearing assets as at 30 June 2022 was $373 million (30 June 2021: $361 million).

17
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
AS AT 30 JUNE 2022
AIR NEW ZEALAND GROUP
10. Property, Plant and Equipment
Owned assets
Items of property, plant and equipment are stated at cost or deemed cost less accumulated depreciation and accumulated
impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the item and in bringing the
asset to the location and working condition for its intended use. Cost may also include transfers from equity of any gains or
losses on qualifying cash flow hedges of foreign currency purchases of property, plant and equipment.
Where significant parts of an item of property, plant and equipment have different useful lives, they are accounted for
separately. A portion of the cost of an acquired aircraft is attributed to its service potential (reflecting the maintenance
condition of its engines) and is depreciated over the shorter of the period to the next major inspection event, overhaul, or the
remaining life of the asset. The cost of major engine overhauls for aircraft owned by the Group is capitalised and depreciated
over the period to the next expected inspection or overhaul.
Capital work in progress includes the cost of materials, services, labour and direct production overheads.
Manufacturing credits
Where the Group receives credits and other contributions from manufacturers in connection with the acquisition of certain
aircraft and engines, these are either recorded as a reduction to the cost of the related aircraft and engines, or offset against
the associated operating expense, according to the reason for which they were received.
Depreciation
Depreciation is calculated to write down the cost of assets on a straight line basis to an estimated residual value over their
economic lives as follows:
Airframes 18 years
Engines 6 – 15 years
Engine overhauls period to next overhaul
Aircraft specific plant and equipment (including simulators and spares) 10 – 25 years
Buildings 50 – 100 years
Non-aircraft specific leasehold improvements, plant, equipment, furniture and vehicles 2 - 10 years
AIRFRAMES,
ENGINES AND
SIMULATORS
$M
SPARE S
$M
PLANT AND
EQUIPMENT
$M
LAND AND
BUILDINGS
$M
CAPITAL WORK
IN PROGRESS
$M
TOTAL
$M
2022
Carrying value as at 1 July 2021

2,639 73 130 210 76 3,128
Additions
Disposals
Depreciation
Impairment reversal/(expense)
Transfers of capital work in progress
Transfers from right of use assets
193
(1)
(259)
2
22
124
26
(10)
(8)
-
-
-
1
-
(30)
-
12
-
10
-
(33)
-
10
-
48
-
-
(1)
(44)
-
278
(11)
(330)
1
-
124
Carrying value as at 30 June 2022
Represented by:
Cost
Accumulated depreciation
Provision for impairment
2,720
4,403
(1,680)
(3)
81
156
(75)
-
113
502
(389)
-
197
550
(341)
(12)
79
79
-
-
3,190
5,690
(2,485)
(15)
Carrying value as at 30 June 2022 2,720 8111319779 3,190

18
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
AS AT 30 JUNE 2022
AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2022
10. Property, Plant and Equipment (continued)
AIRFRAMES,
ENGINES AND
SIMULATORS
$M
SPARE S
$M
PLANT AND
EQUIPMENT
$M
LAND AND
BUILDINGS
$M
CAPITAL WORK
IN PROGRESS
$M
TOTAL
$M
2021
Cost
Accumulated depreciation
Provision for impairment

4,7 72
(1,661)
(287)

157
(78)
-
492
(348)
-

513
(288)
(12)
79
-
(3)

6,013
(2,375)
(302)
Carrying value as at 1 July 2020 2,8247914421376 3,336
Additions
Disposals
Depreciation
Impairment expense
Transfers of capital work in progress
Transfers to right of use assets
Transfer to assets held for resale
92
(2)
(236)
(16)
23
(20)
(26)
12
(5)
(9)
-
-
-
(4)
2
-
(33)
-
17
-
-
20
(1)
(37)
-
15
-
-
55
-
-
-
(55)
-
-
181
(8)
(315)
(16)
-
(20)
(30)
Carrying value as at 30 June 2021
Represented by:
Cost
Accumulated depreciation
Provision for impairment
2,639
3,939
(1,295)
(5)
73
143
(70)
-
130
497
(367)
-
210
531
(309)
(12)
76
76
-
-
3,128
5,186
(2,041)
(17)
Carrying value as at 30 June 2021 2,639 73130210763,128
2022
$M
2021
$M
Airframes, engines and simulators comprise:
Owned airframes, engines and simulators
Progress payments

2,490
230

2,405
234
2,720 2,639
Land and buildings comprise:
Leasehold properties
Freehold properties
185
12
196
14
197210
Certain aircraft and aircraft related assets with a carrying value of $1,665 million as at 30 June 2022 are pledged as specific security
over secured borrowings (30 June 2021: $2,166 million). In the year ended 30 June 2021 all other assets were pledged as general
security under a loan facility provided by the New Zealand Government. The security was released upon repayment and cancellation
of the facility in the year ended 30 June 2022.
Impairment
Assets are required to be carried at no more than their recoverable amount either through use or sale of the asset. Due to
uncertainty surrounding the expected recovery period of global demand as a result of the Covid-19 pandemic, the Group
has undertaken impairment testing to ensure the carrying value of assets are appropriate.
Fleet
Given the severity of the Covid-19 pandemic on long-haul travel the Group grounded its Boeing 777 fleets. As at 30 June
2022 the Boeing 777-200ER fleet was not expected to return to service for Air New Zealand. In the prior financial year, the
Boeing 777-200ER fleet as well as one leased Boeing 777-300ER aircraft were not expected to return to service. At the end
of the 2022 financial year the Group commenced reactivation of the leased Boeing 777-300ER aircraft.
The Boeing 777-200ER owned aircraft, spare engines and associated assets were transferred to ‘Assets held for resale’
(within ‘Other Assets’) in the 2021 financial year and were carried at the lower of their fair value less costs to sell and
their previous carrying value. Prior to their transfer to ‘Assets held for resale’ an impairment expense of $11 million was
recognised against these assets with a further $5 million of impairment recognised against aircraft interiors on leased
aircraft. An impairment provision of $3 million was held against aircraft interiors on leased aircraft as at 30 June 2022
(30 June 2021: $5 million).