Air NZ provides half year earnings guidance for FY24

Stock exchange listings: New Zealand (NZX: AIR) / Australia (ASX: AIZ) / ADR (OTC: ANZLY)


MARKET ANNOUNCEMENT

Air New Zealand postal address: Private Bag 92007, Auckland, 1142, New Zealand
Investor Relations email: investor@airnz.co.nz
Investor website: www.airnewzealand.co.nz/investor


12 October 2023
Air New Zealand provides half year earnings guidance for FY24

Air New Zealand is today providing initial earnings guidance for the first half of FY24 following the
first three months of operating performance.

As noted at the airline’s Annual Shareholders’ Meeting on 26 September, customer demand
remains solid across most markets, but recent softness in domestic travel, particularly corporate
and government travel, has continued. Jet fuel prices and the weaker New Zealand dollar have
also had an adverse impact on costs for much of the first financial quarter. Having increased by
35% from July to September, over the past week the jet fuel price has come down almost 10%,
highlighting the on-going volatility of this critical input cost. Lastly, while the previously disclosed
Pratt & Whitney engine issues are expected to have a noticeable impact on parts of Air New
Zealand’s flying schedule in the second half of FY24, the financial impact on the first half of FY24
is expected to remain nominal.

The economic environment continues to be uncertain and future performance may be impacted by
a number of factors. These factors include increased international competition, volatile fuel prices,
currency fluctuations and ongoing inflationary pressures.

In the context of the above factors, and assuming an average jet fuel price of US$110/bbl for the
remainder of the first half, the airline currently expects earnings before taxation for the first half of
the 2024 financial year to be in the range of $180 million to $230 million.

The airline still holds approximately $200 million in Covid related credits and continues to increase
efforts to contact customers to raise awareness and increase redemption. The expiry date for those
credits has recently been extended by two years until 31 January 2026 for booking travel through
to 31 December 2026. Included within the above guidance range is approximately $45 million of
Covid related credits that are highly unlikely to be redeemed by the extended expiry date.
The airline cautions against extrapolating first half FY24 earnings guidance to the full year given
the many and ongoing uncertainties in the trading environment.

Ends.
This announcement is authorised for release on the NZX and ASX by Jennifer Page, General Counsel &
Company Secretary.

For investor relations queries, please contact: For media enquiries, please contact:
Leila Peters, General Manager Corporate Finance Air New Zealand Communications
leila.peters@airnz.co.nz media@airnz.co.nz
+64 21 743 057 +64 21 747 320