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

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


October 2022 highlights











Group traffic summary
OCTOBERFINANCIAL YTD
FY23
FY22
% *
FY19 ^% *20232022% *+ 2019 ^% *++
Passengers carried (000)1,250
340267.1%1,377(9.2%)5,0972,185135.1%5,750(12.8%)
Revenue Passenger Kilometres(m)2,002
1801012.8%2,933(31.7%)8,0311,537426.8%12,537(37.0%)
Available Seat Kilometres (m)2,255358529.6%3,504(35.6%)9,1522,471273.4%15,006(40.0%)
Passenger Load Factor (%)88.8%50.2%38.6 pts83.7%5.1 pts87.7%62.2%25.5 pts83.5%4.2 pts
Year-to-date RASK
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vs 2022vs 2019 ^vs 2022
vs 2019 ^
Group
13.2%
53.5%12.4%52.4%
Short Haul17.7%
36.6%17.1%36.2%
Long Haul117.0%43.7%
114.3%41.2%
% 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 year to date 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 year to date 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.
30 November 2022

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Operating statistics table


GroupOCTOBERFINANCIAL YTD
FY23FY22% *FY19 ^% *20232022% *+ 2019 ^% *++
Passengers carried (000)1,250
340267.1%
1,377
(9.2%)5,097
2,185135.1%
5,750
(12.8%)
Revenue Passenger Kilometres(m)2,002180
1012.8%2,933
(31.7%)
8,0311,537
426.8%12,537(37.0%)
Available Seat Kilometres (m)2,255
358529.6%
3,504
(35.6%)9,152
2,471273.4%
15,006(40.0%)
Passenger Load Factor (%)88.8%
50.2%38.6 pts
83.7%
5.1 pts87.7%
62.2%
25.5 pts83.5%4.2 pts
Short Haul TotalOCTOBER
FINANCIAL YTD
FY23FY22
% *FY19 ^
% *20232022% *+ 2019^% *++
Passengers carried (000)1,164
337
245.0%1,199
(2.9%)4,7602,170121.2%4,974(5.9%)
Revenue Passenger Kilometres(m)1,144
148
675.1%1,240
(7.8%)4,7161,378245.1%5,184(10.5%)
Available Seat Kilometres (m)1,242
235
428.0%1,450(14.3%)5,3561,939178.5%6,260(15.9%)
Passenger Load Factor (%)92.1%
62.7%
29.4 pts85.6%6.5 pts88.1%71.1%17.0 pts82.8%5.3 pts
DomesticOCTOBERFINANCIAL YTD
FY23FY22% *FY19 ^% *20232022% *+ 2019^% *++
Passengers carried (000)905334
171.0%8951.1%3,6862,05181.2%3,697
(1.9%)
Revenue Passenger Kilometres(m)463138
234.7%4541.9%1,9101,02787.5%1,889
(0.5%)
Available Seat Kilometres (m)514197
160.8%537(4.2%)2,1751,33863.8%2,289
(6.5%)
Passenger Load Factor (%)90.1%
70.2%19.9 pts84.7%5.4 pts87.8%76.7%11.1 pts82.5%5.3 pts
Tasman / PacificOCTOBERFINANCIAL YTD
FY23
FY22% *FY19 ^
% *20232022
% *+ 2019^% *++
Passengers carried (000)2593
7607.7%304(14.9%)1,074
119809.5%1,277
(17.3%)
Revenue Passenger Kilometres(m)68197249.5%786(13.4%)
2,806351706.3%3,296(16.3%)
Available Seat Kilometres (m)728381808.0%913(20.3%)3,181600434.3%
3,972(21.2%)
Passenger Load Factor (%)93.5%24.3%69.2 pts86.1%7.4 pts
88.2%58.4%29.8 pts83.0%5.2 pts
Long Haul TotalOCTOBERFINANCIAL YTD
FY23FY22% *FY19 ^% *20232022% *+
2019^
% *++
Passengers carried (000)863
2586.2%178(51.5%)337
162051.8%776(57.3%)
Revenue Passenger Kilometres(m)858322552.6%1,692
(49.3%)3,3151592001.0%7,353(55.7%)
Available Seat Kilometres (m)1,013123724.1%2,054(50.7%)3,796533618.6%8,746(57.3%)
Passenger Load Factor (%)
84.7%26.3%
58.4 pts82.4%2.3 pts87.3%29.9%57.4 pts
84.1%3.2 pts
As i aOCTOBERFINANCIAL YTD
FY23 FY22% *FY19^% *20232022% *+
2019^% *++
Passengers carried (000)3613436.6%71(49.7%)13452841.2%307(57.0%)
Revenue Passenger Kilometres(m)31493317.1%620(49.4%)1,176422736.7%2,658
(56.5%)
Available Seat Kilometres (m)376
77392.0%744(49.4%)
1,428326341.3%3,221(56.4%)
Passenger Load Factor (%)83.4%
12.0%71.4 pts
83.4%- 82.4%12.8%69.6 pts
82.5%(0.1 pts)
Americas / UKOCTOBERFINANCIAL YTD
FY23 FY22% *
FY19^% *20232022% *+ 2019^% *++
Passengers carried (000)5122199.3%107(52.7%)203111727.9%470(57.5%)
Revenue Passenger Kilometres(m)544232249.5%1,072(49.2%)2,1391171738.7%4,695(55.2%)
Available Seat Kilometres (m)636461271.9%1,311(51.4%)2,3682061057.4%5,525
(57.8%)
Passenger Load Factor (%)85.5%50.0%35.5 pts81.8%3.7 pts90.3%
56.8%33.5 pts85.0%5.3 pts
* % change is based on numbers prior to rounding
++ The year to date 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 year to date 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 25 October 2022 to 29 November 2022)
Air NZ redeems remaining $200 million of redeemable shares 28 November 2022
Air New Zealand has redeemed the remaining $200 million of redeemable shares on issue to the Crown.

Air New Zealand first issued $600 million of redeemable shares to the Crown in April and May 2022 as part
of the airline’s recapitalisation undertaken earlier this year. Air New Zealand elected to redeem $400 million
of those shares in June 2022. In August 2022 the airline indicated that the remaining $200 million would be
redeemed once the airline’s recovery was further progressed.

This redemption is the final redemption, and this facility has now been cancelled.
Air New Zealand issues Performance Rights 2 November 2022
Under the Plan, executives may be issued with 3-year performance rights. There is no cost to the Company
or to the employee when these rights are issued. If future targets, known as ‘vesting conditions’ as set out
below, are met then these rights will see participants receive ordinary shares in the Company at a future date.
If targets are not met, the rights lapse and no shares are awarded to the executives participating in the Plan.
This happened when the vesting conditions set for performance rights due to vest in 2020, 2021 and 2022
were not met.
Chair Dame Therese Walsh says the Plan is part of the broader remuneration package for senior executives
and is designed to incentivise management to outperform over time for the benefit of all shareholders,
employees and customers.
“Air New Zealand is restarting operations in a complex environment with economic headwinds. Guiding the
airline through those challenges to deliver exceptional service, attract and retain key talent and deliver results
to shareholders will test our senior executives. The Long Term Incentive Plan will recognise that effort, but
only if value is created for the airline and its shareholders over the next few years”
Under the Plan, the Company has now issued 14,788,362 performance rights for no consideration to the
Chief Executive Officer and to selected executives. The performance rights were issued on 1 November 2022
as approved by the directors of the Company on 4 October 2022.
These performance rights give participants the right to receive ordinary shares in the Company subject to
certain vesting conditions being met on or after 13 September 2025.
The rights will only vest if the Company’s share price outperforms a comparison index made up 50:50 between
the NZX All Index and the Bloomberg World Airline Index over a three-year measurement period from the
date of issue. In particular:
a) 50% of performance rights will vest if the Company’s share price has matched that comparison index over
the measurement period; and
b) for each 1% the share price outperforms the comparison index, a further 2.5% of performance rights will
vest up to the maximum 100%.
If the share price does not match that index on the third anniversary of the issue date, there will be a further
six-month opportunity for the performance rights to vest, failing which they will lapse.
In connection with the issue of these 2022 performance rights, Air New Zealand advises the following details:

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(a) Class of security and ISIN: Performance Rights- ISIN: N/A
(b) Number of Performance Rights issued: 14,788,362
(c) Issue Price: NIL
(d) Payment in cash: NIL
(e) Amount paid up: N/A
(f) Percentage of total class of securities: 59% (of Performance Rights on issue)
(g) Reason for issue: Issued under the Air New Zealand Long Term Incentive Performance Rights Plan
(h) Specific authority for issue: Directors’ Resolution
(i) Terms/details of issue: Issued under the Air New Zealand Long Term Incentive Performance Rights Plan
(j) Total number of securities of the class after issue: 25,011,530 (Performance Rights)
(k) Treasury Stock: Not applicable
(l) Date of issue: 1 November 2022 (Grant Date: 13 September 2022)
(m) Vesting Date 13 September 2025
Air New Zealand releases 2022 Sustainability Report 27 October 2022
Air New Zealand is pleased to release its 2022 Sustainability Report today. The report is attached or can be
accessed via the link here

For additional information on Air New Zealand's commitment to sustainability, please see our website at:
www.airnewzealand.co.nz/sustainability

Media Releases
(during the period 25 October 2022 to 29 November 2022)

Goodbye boarding passes, hello biometric facial recognition 16 November 2022
Boarding passes will soon be a thing of the past. Last week, Air New Zealand customers were some of the
first to experience biometric verification at the boarding gate after a successful trial at Los Angeles Airport.
It’s all part of Air New Zealand’s plan to take the friction out of travel and to make the journey through the
airport that much smoother. No sighting passports and no scanning boarding passes.

Upon entering the US, customers are provided with the opportunity to register with Customs and Border
Protection (CBP) using their biometric information. Using the automated airport kiosks, this same data is then
used to verify their identity at the time of boarding. Biometric information is secured by CBP and not directly
accessible to Air New Zealand or any other airline using this service.

Air New Zealand Chief Digital Officer Nikhil Ravishankar says this technology will speed up the boarding
process, creating a seamless experience for customers and airport staff.

“We’ve heard from customers that they want their airport experience to be hassle-free and technology is a
key enabler of that. According to IATA, more than 75 percent of customers see huge value in biometric
verification and want to use it instead of passports and boarding passes.

“The feedback from the more than 1000 customers who have used this technology to board our flights has
been really positive.”

The next cab off the rank is San Francisco, followed by the airline’s other US ports.

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“Contactless technology changes are coming thick and fast and we’re continuing to learn and adapt to new
innovations that will make travel easier. In the new travel era, we need simplicity not complexity.”

Earlier this month, the airline launched its improved Air NZ App, which has had close to 2.3 million downloads.

“Using biometrics at the boarding gate is only the beginning and we’re in talks with industry players, globally
and here in New Zealand, about how we can use biometric technology throughout the whole airport process.”

This is another step towards our ambition to become the world’s leading digital airline, and is the result of
months of hard mahi, planning and collaboration.”


Air New Zealand to welcome 2.8 million customers this summer 15 November 2022

Air New Zealand is gearing up its resources to welcome 2.8 million passengers between 15 December 2022
and 31 January 2023, following a surge in demand for what will be the first summer holiday period since Covid
restrictions eased.

Air New Zealand Chief Operating Officer Alex Marren says during the same period last year, the airline carried
just 1.1 million passengers, a clear indication that travel is rebounding.

“Over recent weeks, we’ve seen a strong increase in bookings and over the summer, we’ll be operating at
pre-Covid levels.

We know how important it is to get our customers to where they need to be safely, so we’ve strengthened our
operations to ensure customers enjoy a seamless airport and inflight experience.”

Over the last 10 months, Air New Zealand has hired more than1,950 operational employees – around 1,200
cabin crew, 250 pilots, 400 airport employees and 30 engineers. By February 2023, the airline will have hired
an additional 700 people.

“Over the summer peak, we’re also adding a pool of casual employees across our airports to help customers
on our busiest days. Where possible, we’re offering our part-time employees a full-time role.

We’re back to more robust performance compared to our winter months where we experienced high levels of
Covid. In preparation for summer, we’ve added some additional flexibility around our flight schedule and
increased crew standby levels.”

Air New Zealand is welcoming two new domestic A321neos into the fleet adding 50 additional seats per flight,
brought in charter airline Wamos Air to operate daily return Auckland – Perth services and is continuing to
bring back Boeing 777s from long term storage.

With almost 3 million customers travelling on the Air New Zealand network this summer, the airline is gearing
up for a busy few weeks.


Air New Zealand launches ambitious programme for zero emissions aircraft 4 November 2022
Some of the world’s most innovative aircraft developers will join forces with Air New Zealand with the
ambition of making zero emissions aircraft technology a reality in Aotearoa New Zealand.

Today, Air New Zealand has announced Mission Next Generation Aircraft – an accelerator programme to
progress two ambitious goals:

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1. Fly its first commercial demonstrator flight from 2026
2. Begin replacing its Q300 domestic fleet with a more sustainable aircraft – likely green hydrogen or
battery hybrid systems – from 2030
These goals follow the airline’s Product Requirements Document (PRD) released in December 2021, which
saw more than 30 aircraft developers respond with ideas and insights to guide the technology development.
Air New Zealand is in close negotiations and expects to sign letters of intent by the end of the year with the
partners it will work with.

Air New Zealand Chief Executive Officer Greg Foran says Air New Zealand aims to lead the world in
introducing a more sustainable fleet.

“We have bold sustainability goals. Conventional business processes are not going to address the
technology or infrastructure required to meet them. We want to lead the roll out of zero emission aircraft and
will work alongside aircraft developers, innovators and infrastructure providers to give them the confidence
they’re developing a product that’s a viable option for us.

“The next three years will be focused on supporting the building, testing and certifying of aircraft and
associated infrastructure. By 2026, we’re aiming to have our first zero emissions aircraft – either cargo or
passenger – take flight in New Zealand.

“The learnings we will take from flying an aircraft with next generation propulsion technology from 2026 will
pave the way for our long-term green hydrogen and hybrid partners to deliver an aircraft that can replace
our Q300 domestic fleet. We’re breaking new ground here – it’s not just the aircraft that needs to be
developed, but also the infrastructure and regulation required to fly commercially.”

“We know these goals are ambitious, but ambition is exactly what is required to make this new technology a
reality.”

The PRD process highlighted how New Zealand, and Air New Zealand, are ideally suited to lead the
development of zero emissions aircraft deployment and the establishment of supporting infrastructure.

“We mainly operate short-range routes up and down the country, and New Zealand is largely built on
renewable electricity generation – it’s an ideal landscape to adopt zero emission aircraft.

“But we can’t do it alone. It will take the minds of many within the industry to find the right solution. The
technology is getting there, it just needs to be developed to a scale we can roll out across our network. It’s a
wicked problem to solve but we’re two feet in.”

While zero emissions aircraft technology will decarbonise the airline’s domestic network over the period to
2050, Sustainable Aviation Fuel (SAF) is important in the near term.

SAF is a ‘drop in’ fuel which can power current aircraft, so it can reduce emissions for long haul travel and
domestic flights while the airline continues to operate conventional aircraft.


Air New Zealand says hello to Chicago once again and celebrates 31 October 2022
reopening of all international ports

Air New Zealand has resumed its non-stop service to Chicago, bringing the airline back to all 29 of its
international pre-Covid destinations.

The services will initially operate three times a week with state-of-the-art Boeing 787 Dreamliner aircraft,
meaning customers flying these routes will be able to enjoy the airline’s innovative Business Premier,
Premium Economy and Economy Skycouch.

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“This is an exciting time for us. Since New Zealand’s borders reopened, we’ve been slowly resuming
services and to now be flying to all our international destinations is a milestone moment for us,” says Air
New Zealand Chief Customer and Sales Officer Leanne Geraghty.

“The North American network plays a key role in Air New Zealand’s rebuild and as the third biggest city in
the United States, Chicago is an important destination for us,” she says.

In 2019, visitors from the US spent over $1.5 billion in New Zealand, supporting local tourism and hospitality
industries.

With 12,000 visitors from Illinois alone and almost 40% of travellers connecting to Chicago from other US
states, that figure is expected to grow even further.

“Customers flying into Chicago O’Hare International will benefit from convenient one-stop codeshare
connections to around 100 destinations across the US via the airline’s strong partnership with United
Airlines. This resumed service also adds to Chicago O’Hare International’s ranking as the most connected
airport in the world.”

Chicago is an exciting destination with a lot to offer from its fascinating history, world-class museums and
stunning architecture to internationally renowned jazz and blues scene, and famous dishes including the
iconic deep-dish pizza.”

Air New Zealand now serves seven destinations in North America – Chicago, Honolulu, Houston, Los
Angeles, San Francisco, Vancouver and New York City.


Air New Zealand resumes non-stop flights to Bali 31 October 2022

Kiwis wanting to escape wintery months next year will be delighted to hear Air New Zealand will be returning
to the tropical shores of Bali in March 2023.

Air New Zealand Chief Customer and Sales Officer Leanne Geraghty says tickets have gone on sale today
to Bali, which remains one of the hottest international holiday spots for Kiwis.

“We first flew to Bali in 2012. Our last flight was in 2019 when we flew around 17,000 customers. It’s awesome
to be back offering non-stop services and give Kiwis direct access a tropical paradise that suits any type of
travellers.

“Bali regularly features as one our topmost searched destinations – currently in the top five – and we’re
expecting interest to be hotter than the Balinese sunshine as Kiwis flock to book a winter getaway.”

Next year, Air New Zealand will fly a seasonal service between 29 March – 27 October 2023. This seasonal
service covers April, July and October school holidays and is subject to government and regulatory approvals.

The airline will fly a 787-9 Dreamliner three times weekly in the only non-stop flight between Auckland and
Denpasar.

Following Air New Zealand’s customer research on longer flights, Bali will move to our full-service longhaul
which means all Economy customers will receive a tasty meal, Inflight Entertainment, and a checked bag.
Customers will also be able to book our award-winning Business Premier and Premium Economy.


Air New Zealand named Best Airline in the South Pacific at APEX Awards 28 October 2022

Yesterday Air New Zealand picked up top honours at the prestigious 2022 APEX Awards – receiving the 2023
APEX Passenger Choice Award for Best Airline in the South Pacific and being named a 2023 APEX Five Star
winner.

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The 2022 APEX Awards are held annually to recognise airlines in various regions for providing the best
passenger experiences as rated by passengers.

Air New Zealand Chief Executive Officer Greg Foran says the airline is incredibly proud to be named Best
Airline in the South Pacific by the Airline Passenger Experience Association.

“This award is testament of the outstanding product and service our teams continue to deliver to our
customers – this award goes to our Air New Zealand whānau (family). A very big thank you to all our
employees who played an important role in getting us to where we are today.”

With New Zealand’s international borders reopened, this is a fantastic way to celebrate that once our Chicago
service resumes on 30 October, we’ll be not only be back to flying to all 29 of our international destinations,
but we’ve also grown – having launched New York last month.”

For the 2023 Awards, nearly one million flights were rated by passengers across more than 600 airlines from
around the world using a five-star scale. Passengers were given the opportunity to provide anonymous ratings
in five subcategories: seat comfort, cabin service, food and beverage, entertainment, and Wi-Fi.

These awards follow Air New Zealand being named the ‘World’s Safest Airline 2022’ in the annual Airline
Ratings, marking the airlines commitment to leading safety improvements and protecting the health and safety
of its people and customers.