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

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


November 2022 highlights










21 December 2022
Group traffic summaryNOVEMBERFINANCIAL YTD
FY23
FY22% *FY19^% *20232022% *+ 2019 ^% *++
Passengers carried (000)
1,248345261.7%1,377(9.4%)6,3452,530152.4%7,128(12.2%)
Revenue Passenger Kilometres(m)2,075198946.6%2,780(25.3%)10,1061,735486.3%15,317(34.9%)
Available Seat Kilometres (m)2,421408492.9%3,385(28.5%)11,5732,880304.6%18,391(37.9%)
Passenger Load Factor (%)85.7%48.6%37.1 pts82.1%3.6 pts87.3%60.3%27.0 pts83.3%4.0 pts
Year-to-date RASK
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vs 2022vs 2022
Group13.5%52.9%12.7%51.7%
Short Haul17.0%37.3%16.4%36.8%
Long Haul123.4%43.1%120.4%40.4%
% 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.
vs 2019 ^vs 2019 ^

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Operating statistics table


GroupNOVEMBERFINANCIAL YTD
FY23 FY22% *FY19^% *20232022% *+ 2019 ^% *++
Passengers carried (000)1,248345261.7%1,377(9.4%)6,3452,530152.4%7,128(12.2%)
Revenue Passenger Kilometres(m)2,075198946.6%2,780(25.3%)10,1061,735486.3%15,317(34.9%)
Available Seat Kilometres (m)2,421408492.9%3,385(28.5%)11,5732,880304.6%18,391(37.9%)
Passenger Load Factor (%)85.7%48.6%37.1 pts82.1%3.6 pts87.3%60.3%27.0 pts83.3%4.0 pts
Short Haul TotalNOVEMBERFINANCIAL YTD
FY23 FY22% *FY19^% *20232022% *+ 2019^% *++
Passengers carried (000)1,153341238.2%1,217(5.2%)5,9142,511137.1%6,191(5.8%)
Revenue Passenger Kilometres(m)1,122158609.7%1,243(9.7%)5,8381,536282.6%6,427(10.4%)
Available Seat Kilometres (m)1,291262392.1%1,475(12.5%)6,6472,201204.0%7,736(15.2%)
Passenger Load Factor (%)86.9%60.3%26.6 pts84.2%2.7 pts87.8%69.8%18.0 pts83.1%4.7 pts
DomesticNOVEMBERFINANCIAL YTD
FY23 FY22% *FY19^% *20232022% *+ 2019^% *++
Passengers carried (000)902334170.2%921(2.1%)4,5882,38493.7%4,618(2.0%)
Revenue Passenger Kilometres(m)464140231.0%479(3.0%)2,3741,167104.8%2,367(1.0%)
Available Seat Kilometres (m)528212149.7%576(8.2%)2,7031,55075.5%2,865(6.9%)
Passenger Load Factor (%)87.9%66.3%21.6 pts83.1%4.8 pts87.8%75.3%12.5 pts82.6%5.2 pts
Tasman / PacificNOVEMBERFINANCIAL YTD
FY23 FY22% *FY19^% *20232022% *+ 2019^% *++
Passengers carried (000)25273383.3%296(14.9%)1,325126956.7%1,572(16.8%)
Revenue Passenger Kilometres(m)658183595.0%764(13.9%)3,464369845.8%4,060(15.8%)
Available Seat Kilometres (m)762511404.8%900(15.2%)3,944651509.9%4,871(20.1%)
Passenger Load Factor (%)86.3%35.1%51.2 pts84.9%1.4 pts87.8%56.6%31.2 pts83.3%4.5 pts
Long Haul TotalNOVEMBERFINANCIAL YTD
FY23 FY22% *FY19^% *20232022% *+ 2019^% *++
Passengers carried (000)9542276.3%161(41.1%)432202097.7%937(54.5%)
Revenue Passenger Kilometres(m)953402271.0%1,537(38.0%)4,2681992056.1%8,890(52.6%)
Available Seat Kilometres (m)1,130146674.1%1,909(40.8%)4,927679630.8%10,655(54.4%)
Passenger Load Factor (%)84.3%27.5%56.8 pts80.5%3.8 pts86.6%29.4%57.2 pts83.4%3.2 pts
As i aNOVEMBERFINANCIAL YTD
FY23 FY22% *FY19^% *20232022% *+ 2019^% *++
Passengers carried (000)4213446.4%68(38.5%)17662965.7%374(53.7%)
Revenue Passenger Kilometres(m)370113335.7%606(39.0%)1,546532860.6%3,264(53.3%)
Available Seat Kilometres (m)43076464.1%767(43.9%)1,859403364.7%3,987(54.0%)
Passenger Load Factor (%)85.9%14.1%71.8 pts79.1%6.8 pts83.2%13.1%70.1 pts81.9%1.3 pts
Americas / UKNOVEMBERFINANCIAL YTD
FY23 FY22% *FY19^% *20232022% *+ 2019^% *++
Passengers carried (000)5331787.1%93(42.9%)256141740.1%562(55.1%)
Revenue Passenger Kilometres(m)
584291881.8%931(37.3%)2,7221471767.9%5,626(52.3%)
Available Seat Kilometres (m)70070903.9%1,142(38.7%)3,0682761019.0%6,667(54.6%)
Passenger Load Factor (%)83.4%42.2%41.2 pts81.5%1.9 pts88.7%53.2%35.5 pts84.4%4.3 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 30 November 2022 to 20 December 2022)
Air New Zealand updates half year earnings guidance for FY23 8 December 2022
Continued strong travel demand across the domestic and international networks, as well as a recent decline
in jet fuel prices has accelerated the airline’s financial recovery. As a result, Air New Zealand is upgrading
half year earnings guidance for the 2023 financial year.

The airline now expects earnings before other significant items and taxation for the first half of the financial
year to be in the range of $295 million to $325 million. This compares to the previous guidance range provided
on 21 September 2022 of $200 million to $275 million for the half year. The updated range is based on current
forward sales expectations and assumes an average jet fuel price of around US $127/bbl for the six months
to 31 December 2022. It also assumes we will fly approximately 75 percent of pre-Covid capacity levels across
the entire network in December, with Domestic running at just under 100 percent, short haul at about 85
percent and international at around 70 percent.

Ticket sales over the past two months have remained strong as New Zealanders continue to book travel
overseas and at home, and as the majority of our remaining international destinations re-open for passenger
travel.

Fuel prices have also moderated in recent weeks, with current jet fuel prices of approximately US$102/bbl.
While fuel prices are around 20 percent higher than pre-Covid levels at present, the six-month average has
declined since the airline’s last market update in September, adding almost $20 million upside to the guidance
range. Whilst fuel is a contributor to this earnings update, it is not the only factor.

Capacity remains constrained which will continue to impact pricing. Air New Zealand is focussed on ensuring
operational reliability while also adding capacity to alleviate this pressure. Since February 2022 the airline has
hired over 2,200 employees into the organisation and welcomed two new A321 neo aircraft into the fleet.
These new aircraft add an additional 200,000 seats per year into the domestic network and alongside the
additional employees, will help ease capacity restraints.

There are many factors that have the potential to slow the airline’s recovery and significantly impact earnings.
These include ongoing fuel price volatility, global recessionary risks, continued inflationary pressures and
increased costs. Consequently, the airline is not providing full year guidance at this time.


Media Releases
(during the period 30 November 2022 to 20 December 2022)

Air New Zealand announces Mission Next Gen Aircraft partners 14 December 2022
Eviation. Beta. VoltAero. Cranfield Aerospace.
Air New Zealand has announced four world-leading innovators it will be working with on its mission to have
its first zero emissions demonstrator flight – either cargo or passenger – take to the skies from 2026.
A combination of electric, green hydrogen, and hybrid aircraft, these partners will work alongside Air New
Zealand over the coming years to focus on developing the technology and associated infrastructure required
to make flying these aircraft in New Zealand a reality.

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These partnerships involve Air New Zealand signing a “statement of intent to order”, a document which
demonstrates its ambition to acquire three aircraft initially, with further options for 20, from one or more of the
partners subject to an evaluation process.
Air New Zealand Chief Executive Officer Greg Foran says the airline selected these partners based on the
stage they are at in their aircraft development journey and their shared goal of starting now to take ambitious
action on climate change.
“Mission NextGen Aircraft is not about backing one innovator. It’s about working with a range of leaders in
zero emissions aircraft technology to help move the whole ecosystem along. Our goal is to confirm our
commitment with one or more of these partners in the next 12 months with the ambition of purchasing an
aircraft for delivery from 2026.
“The learnings we will take from flying an aircraft with next generation propulsion technology from 2026 will
then pave the way for our long-term partners to deliver an aircraft that can replace our Q300 turbo prop
domestic fleet.
“Getting a zero emissions aircraft off the ground by 2026 is going to be challenging. But we’re incredibly
ambitious – because we need to be”
To further understand the infrastructure required to fly green-hydrogen aircraft, the airline has also signed a
strategic alliance agreement with Hiringa Energy, a New Zealand based green-hydrogen supply and refueling
infrastructure company.
“While the aircraft play a pivotal role, infrastructure partners are just as important. Through this agreement we
will explore the future green hydrogen supply solutions for our commercial demonstrator ambitions with a
focus on ensuring any solutions we create to meet our 2026 goal are also building a platform for a larger next
generation fleet from the 2030’s” Mr Foran says.
While zero emissions aircraft technology will help decarbonise the airline’s domestic network over the period
to 2050, Sustainable Aviation Fuel (SAF) is important in the near term for the long-haul fleet.
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. The inputs and processes used
to make SAF result in lower lifecycle emissions than fossil jet, with the opportunity to generate significant CO2
savings.
Hiringa Energy Chief Executive Andrew Clennett says the agreement is key to accelerating the development
of hydrogen as a sustainable and renewable zero emission fuel for both the airline and New Zealand.
“Kiwis will be excited Air New Zealand is taking a lead in identifying zero emissions aircraft and backing local
companies like Hiringa Energy to help overcome the challenges of providing green hydrogen to power them,”
Mr Clennett says.
Tis the season to be flying 13 December 2022
Air New Zealand will be dashing through the skies this Christmas as tens of thousands of customers travel
on its peak busiest day.

Air New Zealand is expecting to fly 2.8 million customers around Aotearoa New Zealand and the world this
summer as they make their way to their holiday destinations.

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The airline is encouraging customers to plan ahead, add extra time, expect delays and be patient with
airport staff and aircrew as sickness and shortages across the aviation industry coincide with what will be an
extraordinarily busy time to fly.

The airline’s busiest day of the year will be 23 December with more than 55,000 customers heading away
on their holiday break – up from 31,000 last year when international borders were closed. That’s a 77%
increase in passenger numbers.

More than 50,000 customers are also expected to fly on 15, 16, 22, 27 and 28 December.

Air New Zealand Chief Customer and Sales Officer Leanne Geraghty says this will be the first summer in
three years where the airline’s full network is operating, and airports will be busy.

“We’re excited to connect so many Kiwis with their loved ones this Christmas and we want to help
customers prepare for their holiday travel.

“While it’s great to have more people travelling this year, it does come with some challenges. Flights will be
packed, with lots of queues and extra baggage. As we prepare for a bumper summer, we’re pulling out all
the stops to take the friction out – with new aircraft, hiring 2200 more people, 300 airport volunteers and
contingency plans in place for disrupts.”

Even with the additional measures taken, the entire airport community will be under pressure.

“Airports, security screening and check in areas are going to be much busier than usual. We’re asking
customers to allow additional time to get to and through the airport they are travelling from and to be as
patient as possible as our staff who are working to get everyone to their holiday destination,” says Ms
Geraghty.

The airline is asking customers to arrive at the airport at least three hours before their flight if travelling
internationally, and at the very latest 60 minutes before their flight if travelling domestically. Travellers with
pets, oversized bags, or requiring special assistance are asked to add a little more time to that.


Air New Zealand wins Best Airline Design Award for Oceania 2022 12 December 2022
Air New Zealand was named Design Airline of the Year Oceania 2022 at this year’s TheDesignAir awards,
with the announcement of a new cabin product in 2024 and the introduction of a new culinary proposition
and sustainable serviceware.

Chief Customer and Sales Officer Leanne Geraghty says that despite ongoing travel restrictions throughout
the last two years, the airline continued to work hard behind the scenes to innovate the customer journey –
it’s a huge part of how we demonstrate manaaki (care) for our customers.
“In Premium cabins, we switched to serviceware that is 20% lighter, helping to reduce carbon emissions,
and in Economy, introduced new serviceware that will reduce plastic dishes used inflight by 28 million every
year.
“Our new international menu showcases the best of New Zealand produce and allows customers in
Premium to customise their choices by adding the likes of seared salmon from Marlborough, free-range
chicken from Waikato or bacon, and steamed green vegetables or fresh, crisp salads picked straight from
orchards and fields in Gisborne, Waikato and the Manawatū.
With many of Air New Zealand’s flights being long-haul or ultra-long haul, the airline zeroed in on sleep,
comfort and wellness. Zentertainment was introduced across all cabins to help customers wind down with

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curated IFE content and for those in Premium, a sleep ritual will help customers slow down and rest.

“Air New Zealand has earned a well-deserved award this year as Design Airline of the Year, Oceania 2022.
With the announcement of a new cabin product in the coming years, a strong bold brand, its clever use of
safety videos as a marketing device and brand partnerships with excellent design leaders, the carrier oozes
design details across the passenger experience,” states Jonny Clark, Founder of TheDesignAir.
“We’re thrilled to see the carrier continue to evolve its passenger experience, invest in new products, and
continue to be the brand platform for Aotearoa design on the international stage.”
In 2024, Air New Zealand customers will have more choice than any other airline. The airline’s Boeing 787-
9s will consist of a new Business Premier Luxe suite, new Business Premier seat and a world-first Skynest,
along with four other options to get a good sleep.
Overseen by an esteemed judging panel of industry experts, frequent fliers, and team members,
TheDesignAir have been running since 2012 and is the only annual awards to recognise airlines who truly
invest in design, product and brand.