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

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


July 2022 highlights









Group traffic summary
JULY
FINANCIAL YTD
20222021% * + 2018 +++% * ++20232022% * + 2019 +++% * ++
Passengers carried (000)
1,2671,07521.6%1,420(16.5%)1,2671,07521.6%1,420(16.5%)
Revenue Passenger Kilometres(m)1,908848132.1%3,183(43.9%)1,908848132.1%3,183(43.9%)
Available Seat Kilometres (m)2,1691,19687.2%3,811(46.7%)2,1691,19687.2%3,811(46.7%)
Passenger Load Factor (%)
87.9%70.9%17.0 pts83.5%4.4 pts87.9%70.9%17.0 pts83.5%4.4 pts
Year-to-date RASK
1
vs 2022
vs 2019vs 2022vs 2019
Gro up
6.9%51.2%6.5%52.2%
Sho rt Haul17.1%34.6%16.9%35.0%
Long Haul
84.1%39.4%82.1%41.8%
% change in reported RASK (incl. FX)
% change in reported RASK (excl. FX)
1 Reported RASK (unit passenger revenue per availab le seat kilometre) is inclusive of foreign currency impact, and underlying RASK excludes foreign currency
impact.
* % change is b ased on numb ers prior to rounding
++ The month's percentage movements have b een adjusted on a daily weighted average b asis. The adjustment takes into account the difference in days for the
accounting month of July 2018 (29 days) compared with July 2022 (31 days). This is b ecause Air New Zealand operates on a 4,4,5 accounting calendar b ut closes the
annual accounts on 30 June.
+ The month's percentage movements have b een adjusted on a daily weighted average b asis. The adjustment takes into account the difference in days for the
accounting month of July 2021 (32 days) compared with July 2022 (31 days). This is b ecause Air New Zealand operates on a 4,4,5 accounting calendar b ut closes the
annual accounts on 30 June.
Please note that the availab le seat kilometre (capacity) numb ers included in the tab les within this disclosure do not include any cargo-only flights. This is b ecause
these capacity numb ers are used to calculate passenger load factors and passenger RASK
+++ From 1 July 2022, Honolulu flights are categorised as Americas (was Pacific) and Denpsar flights are categorised as Asia (was Pacific). All historic data has b een
adjusted to reflect this change.
8 September 2022

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Operating statistics table


GroupJULY
FINANCIAL YTD
2022
2021% *+
2018
+++
% *++
20232022
% *+
2019
+++
% *++
Passengers carried (000)
1,267
1,075
21.6%
1,420(16.5%)
1,2671,075
21.6%
1,420(16.5%)
Revenue Passenger Kilometres(m)1,908848
132.1%3,183
(43.9%)
1,908848132.1%3,183(43.9%)
Available Seat Kilometres (m)
2,1691,196
87.2%3,811
(46.7%)
2,1691,196
87.2%
3,811(46.7%)
Passenger Load Factor (%)
87.9%70.9%17.0 pts
83.5%4.4 pts
87.9%
70.9%17.0 pts
83.5%4.4 pts
Short Haul TotalJULYFINANCIAL YTD
2022
2021% *+
2018
+++
% *++
20232022
% *+
2019
+++
% *++
Passengers carried (000)1,1931,071
15.0%
1,222(8.7%)
1,1931,071
15.0%
1,222(8.7%)
Revenue Passenger Kilometres(m)
1,18280052.6%
1,309
(15.5%)1,18280052.6%1,309(15.5%)
Available Seat Kilometres (m)
1,3601,06132.3%
1,623
(21.6%)1,360
1,06132.3%1,623(21.6%)
Passenger Load Factor (%)
86.9%75.3%11.6 pts
80.7%
6.2 pts86.9%
75.3%11.6 pts
80.7%6.2 pts
DomesticJULY
FINANCIAL YTD
20222021
% *+
2018
+++
% *++2023
2022% *+
2019
+++
% *++
Passengers carried (000)
927978(2.2%)892(2.8%)
927978(2.2%)
892(2.8%)
Revenue Passenger Kilometres(m)487
527(4.6%)
461(1.0%)
487527(4.6%)
461(1.0%)
Available Seat Kilometres (m)550
644(11.9%)569(9.6%)
550644(11.9%)
569(9.6%)
Passenger Load Factor (%)
88.7%81.8%
6.9 pts81.0%7.7 pts88.7%
81.8%6.9 pts81.0%7.7 pts
Tasman / Pacific
JULYFINANCIAL YTD
20222021
% *+
2018
+++
% *++20232022
% *+
2019
+++
% *++
Passengers carried (000)26693
196.1%330(24.7%)266
93196.1%330(24.7%)
Revenue Passenger Kilometres(m)695
272163.3%
848(23.4%)695
272163.3%
848(23.4%)
Available Seat Kilometres (m)811417100.6%1,054(28.0%)811417100.6%1,054(28.0%)
Passenger Load Factor (%)
85.7%65.3%20.4 pts
80.5%5.2 pts
85.7%65.3%20.4 pts
80.5%5.2 pts
Long Haul TotalJULYFINANCIAL YTD
20222021% *+ 2018
+++
% *++20232022% *+ 2019
+++
% *++
Passengers carried (000)
7451491.5%
198(64.8%)
7451491.5%
198(64.8%)
Revenue Passenger Kilometres(m)725491435.2%
1,874(63.8%)725491435.2%1,874(63.8%)
Available Seat Kilometres (m)809135
519.5%
2,188(65.4%)809135
519.5%2,188(65.4%)
Passenger Load Factor (%)
89.6%36.2%
53.4 pts85.6%4.0 pts89.6%
36.2%53.4 pts85.6%4.0 pts
As i aJULY
FINANCIAL YTD
20222021
% *+
2018
+++
% *++2023
2022% *+
2019
+++
% *++
Passengers carried (000)301
2241.2%75
(62.2%)301
2241.2%75(62.2%)
Revenue Passenger Kilometres(m)266122151.0%649(61.7%)
266122151.0%
649
(61.7%)
Available Seat Kilometres (m)326
80321.6%777
(60.8%)32680321.6%
777(60.8%)
Passenger Load Factor (%)81.6%15.3%66.3 pts83.5%(1.9 pts)81.6%
15.3%66.3 pts83.5%(1.9 pts)
Americas / UKJULYFINANCIAL YTD
20222021% *+ 2018
+++
% *++20232022% *+ 2019
+++
% *++
Passengers carried (000)44
31203.9%123(66.5%)
4431203.9%123(66.5%)
Revenue Passenger Kilometres(m)459371196.5%1,225
(64.9%)459371196.5%
1,225(64.9%)
Available Seat Kilometres (m)483
55806.3%1,411(68.0%)48355
806.3%1,411(68.0%)
Passenger Load Factor (%)95.1%66.5%28.6 pts86.8%
8.3 pts95.1%66.5%28.6 pts86.8%8.3 pts
* % change is based on numbers prior to rounding
++ The month's percentage movements have been adjusted on a daily weighted average basis. The adjustment takes into account the difference in days for the accounting
month of July 2018 (29 days) compared with July 2022 (31 days). This is because Air New Zealand operates on a 4,4,5 accounting calendar but closes the annual
accounts on 30 June.
+ The month's percentage movements have been adjusted on a daily weighted average basis. The adjustment takes into account the difference in days for the accounting
month of July 2021 (32 days) compared with July 2022 (31 days). This is because Air New Zealand operates on a 4,4,5 accounting calendar but closes the annual
accounts on 30 June.
Air New Zealand operates primarily in one segment, its primary business being the transportation of passengers and cargo on an integrated network of scheduled airline
services to, from and within New Zealand. The following operational data and statistics is additional supplementary information only.
+++ From 1 July 2022, Honolulu flights are categorised as Americas (was Pacific) and Denpsar flights are categorised as Asia (was Pacific). All historic data has been
adjusted to reflect this change.

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Market Announcements
(during the period 8 August 2022 to 7 September 2022)
Refuelled for recovery, Air NZ announces 2022 annual result 25 August 2022
2022 Financial summary
• Loss before other significant items and taxation of $725 million, 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 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.

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.

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.

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“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 AirpointsTM members there were more than 2,000 new products added to our AirpointsTM 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

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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.
Air New Zealand 2022 Notice of Annual Meeting 24 August 2022
Air New Zealand shareholders are invited to join the Annual Shareholders’ Meeting 2022 which will be held
at the Ellerslie Event Centre – Tote on Ascot, 100 Ascot Avenue, Remuera, Auckland on Thursday 22
September 2022 at 2.00pm. Shareholders can also join the meeting via an online platform.

The Notice of Meeting and Voting Form are attached. An electronic copy of these documents is available on
the company’s website: https://www.airnewzealand.co.nz/annual-meeting.

The Notice of Meeting and Voting Form are being emailed to shareholders who have provided the company’s
share registrar with an email address and will be mailed in hard copy where the share registrar does not hold
a shareholder’s email address.

Guidance on meeting participation is included in the Notice of Meeting. Shareholders attending online will be
able to access the meeting link and Portal Guide from the Company’s website,
https://www.airnewzealand.co.nz/annual-meeting.

Shareholders joining via the online platform will be able to vote and ask questions during the meeting. You
will require your shareholder number (found on your proxy form) for verification purposes. Questions can be
submitted in advance of the meeting using the proxy form, or during the meeting by asking questions via the
online platform. The Chairman will answer as many of the most frequently asked questions as possible during
the meeting.

Shareholders can also appoint a proxy and direct their votes in advance of the meeting. Please see the Notice
of Meeting for instructions.
Media Releases
(during the period 8 August 2022 to 7 September 2022)
Air New Zealand’s first Mojave Desert-based 777-300 touches 23 August 2022
down in Auckland

After almost two years in deep storage in Victorville, California, Air New Zealand has welcomed back its first
777-300 aircraft, registration ZK-OKP, from the desert.

ZK-OKP took off from Los Angeles International Airport just before 9pm local time on Sunday, 21 August, and
landed at Auckland International Airport at 4:45am on Tuesday, 23 August.

Due to increased demand for travel, the airline is bringing back its largest widebody jet aircraft, seating up to
342 customers, to provide customers more capacity.

For the next six to eight weeks, ZK-OKP will have scheduled maintenance in Hangar 3 before re-joining the
operating fleet in late September.

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ZK-OKP is the first of four Victorville-based 777-300 aircraft to be reanimated and the airline is working
through a programme to bring back the three-remaining aircraft over the next year.

The airline also has three 777-300 aircraft that were stored locally here in Auckland for the last two years.
Two of these aircraft are back in service, with 777-300 ZK-OKO due to re-enter service in the coming weeks.


Air New Zealand plans ahead for a smoother summer 11 August 2022

Air New Zealand is taking proactive measures to protect the travel plans of its customers as sickness levels
continue to cause disruption.

Over the next six months, the airline will operate a slightly reduced schedule of 1.5 percent fewer seats than
originally planned, meaning a change to some flights.

Most customers who experience a flight change will be transferred to another flight on the same day for
domestic travel, and for international travel, on the same day or a day either side of their original booking.
Where customers cannot be accommodated within these timeframes, they may change their booking online,
opt into credit or request a refund.

Those customers with changes will be automatically transferred to another flight. Those with further onward
connections may also be disrupted and we will work through these directly with impacted customers.

Air New Zealand Chief Executive Officer Greg Foran says making these changes now gives customers
advance notice and will help the airline provide a service that’s more reliable during its rebuild.

“Like many airlines around the world, we’ve been ramping up our operation at a time when Covid and the flu
continues to impact the aviation industry. Looking at the disruptions our customers and staff have faced over
the past five weeks, we’ve made some adjustments to reduce short-notice cancellations in the months ahead.

“While we did factor sickness into our ramp up plan, we’ve seen the highest rates of crew sickness in over a
decade. We see these challenges continuing not just for crew, but for our whole operation, and so we’re
making proactive changes to address them.”

Mr Foran says reducing the number of flights means the airline will be able to have crew on standby to cover
illness, which has not been possible lately.

“We’re pulling out all the stops to minimise disruption and provide surety for our customers over the next six
months. We have rehired or brought on more than 2,000 pilots, airport staff, cabin crew, contact centre and
engineers, and we’re going as fast as we can with recruitment and training.

“We’re also exploring options to lease a crewed widebody aircraft for the busy summer period. We know
customers want the Air New Zealand experience, and that’s what we want to deliver too. But at the moment
we’re stretched to capacity and making sure our customers are able to travel is our top priority. The lease of
an additional crewed aircraft may help us achieve that.”

Air New Zealand’s domestic and international schedule will be operating at 90% of pre-Covid capacity for the
next six months.

What should I do if my flight changes because of these schedule changes?
If your domestic flight has changed and you have not been given a flight on the same day, then you will be
able to request a change online under Manage my booking, opt into credit or request a refund.

If your international flight has changed and you have not been given a flight on the same day or on a day
either side of your original booking, then you will be able to request a change online under Manage my
booking, opt into credit or request a refund.

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If you have booked through a travel agent, you will need to contact them if changes are needed, or to request
a refund if eligible.

When can you get a refund?

For other controllable events like staff sickness, engineering or operational requirements, a refund may also
be available when Air New Zealand is unable to provide an alternative flight within the timeframes stated
above*.

For disruptions outside of the airline’s control (e.g. weather), where the alternative flight offered is not suitable,
customers can opt into credit or if they purchased a refundable ticket, they will be eligible for a refund or where
a refund is required by applicable legislation.
*In some countries, refunds may be required under applicable legislation.