Air New Zealand Investor Update (Op Stats) – September 2023

1


Contents
• September 2023 traffic highlights and commentary
• Operating statistics table
• Recent market announcements


September 2023 Commentary
• The overall increase in Group capacity was largely driven by the resumption of the
international network following the full re-opening of New Zealand’s borders post-Covid. Long-
haul international ASK’s increased 94%, short-haul international ASKs increased 20.3%, and
domestic ASKs were broadly flat compared to the same period last year.
• The decline in Group YTD RASK compared to the prior year was driven by the significant mix
change for the 2024 financial year to date, whereby long-haul capacity growth and load factors
were substantially higher relative to short-haul.
• Short-haul YTD RASK, which includes the Domestic, Tasman and Pacific islands networks
declined 1.9% compared to last year. This was driven by a Tasman and Pacific islands YTD
RASK decline, offset by a small increase in Domestic YTD RASK.
• Long-haul YTD RASK declined 11.9% driven primarily by some North American routes with a
small decrease on Asian routes.






















30 October 2023

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September 2023 highlights




















Group traffic summary
SEPTEMBERFINANCIAL YTD
FY24 FY23% *20242023% *+
Passengers carried (000)1,6021,4847.9%4,1383,8478.7%
Revenue Passenger Kilometres(m)
3,3342,40638.5%8,9966,02950.8%
Available Seat Kilometres (m)4,0292,72947.7%11,1226,89763.0%
Passenger Load Factor (%)82.7%88.2%(5.5 pts)80.9%87.4%(6.5 pts)
Year-to-date RASK
1
vs 2023vs 2023
Group(14.5%)(14.7%)
Short Haul(1.9%)(1.9%)
Long Haul(11.9%)(12.4%)
% change in reported
RASK (incl. FX)
% change in reported
RASK (excl. FX)
1 Reported RASK (unit passenger revenue per available seat kilometre) is inclusive of foreign currency impact, and underlying
RASK excludes foreign currency impact.
* % change is based on numbers prior to rounding
Please note that the available seat kilometre (capacity) numbers included in the tables within this disclosure do not include
any cargo-only flights. This is because these capacity numbers are used to calculate passenger load factors and passenger
RASK
+ The month 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 2022 (31 days) compared with July 2023 (30 days). This is because Air New
Zealand operates on a 4,4,5 accounting calendar but closes the annual accounts on 30 June.

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Operating statistics table


Group
SEPTEMBER
FINANCIAL YTD
FY24 FY23% *2024
2023
% * +
Passengers carried (000)1,602
1,4847.9%4,1383,8478.7%
Revenue Passenger Kilometres(m)
3,3342,406
38.5%
8,996
6,02950.8%
Available Seat Kilometres (m)4,0292,72947.7%
11,122
6,89763.0%
Passenger Load Factor (%)
82.7%88.2%
(5.5 pts)80.9%87.4%(6.5 pts)
Short Haul T otal
SEPTEMBER
FINANCIAL YTD
FY24 FY23% *20242023
% * +
Passengers carried (000)
1,412
1,379
2.4%
3,6063,597
1.3%
Revenue Passenger Kilometres(m)1,4701,3677.5%3,804
3,572
7.6%
Available Seat Kilometres (m)
1,7391,54812.3%4,703
4,11415.6%
Passenger Load Factor (%)84.5%
88.3%
(3.8 pts)80.9%86.8%(5.9 pts)
Domestic
SEPTEMBERFINANCIAL YTD
FY24 FY23% *20242023% * +
Passengers carried (000)
1,0511,066
(1.4%)
2,662
2,781
(3.3%)
Revenue Passenger Kilometres(m)540549
(1.6%)1,3741,447(4.0%)
Available Seat Kilometres (m)631
6270.7%1,699
1,6613.4%
Passenger Load Factor (%)
85.5%87.5%
(2.0 pts)80.9%
87.1%(6.2 pts)
Tasman / Pacific
SEPTEMBERFINANCIAL YTD
FY24
FY23% *2024
2023% * +
Passengers carried (000)
36131315.1%944
81517.0%
Revenue Passenger Kilometres(m)930
81813.7%
2,4302,125
15.6%
Available Seat Kilometres (m)1,108921
20.3%3,0042,45323.8%
Passenger Load Factor (%)83.9%
88.8%(4.9 pts)80.9%
86.6%(5.7 pts)
Long Haul T otal
SEPTEMBERFINANCIAL YTD
FY24 FY23% *2024
2023% * +
Passengers carried (000)
190105
81.0%532
250114.4%
Revenue Passenger Kilometres(m)1,863
1,04079.2%5,191
2,457113.6%
Available Seat Kilometres (m)2,2901,180
94.0%6,419
2,784133.1%
Passenger Load Factor (%)81.4%88.1%(6.7 pts)80.9%
88.3%(7.4 pts)
Asia
SEPTEMBERFINANCIAL YTD
FY24
FY23% *2024
2023% * +
Passengers carried (000)100
40148.9%279
98186.1%
Revenue Passenger Kilometres(m)868354145.4%2,408862182.2%
Available Seat Kilometres (m)1,042
431141.4%2,9551,052183.9%
Passenger Load Factor (%)83.3%82.0%1.3 pts
81.5%82.0%
(0.5 pts)
AmericasSEPTEMBER
FINANCIAL YTD
FY24
FY23% *2024
2023% * +
Passengers carried (000)90
6538.8%253152
68.0%
Revenue Passenger Kilometres(m)99668645.1%2,7841,59476.5%
Available Seat Kilometres (m)1,24874966.6%3,4641,732
102.2%
Passenger Load Factor (%)79.8%91.6%(11.8 pts)80.4%92.1%
(11.7 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 2022 (31 days) compared with July 2023 (30 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.

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Market Announcements
(during the period 9 October 2023 to 29 October 2023)
Air NZ provides half year earnings guidance for FY24 12 October 2023

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.