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

1


Contents
• October 2023 traffic highlights and commentary
• Operating statistics table
• Recent market announcements and media releases


October 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 79.6%, short-haul international ASKs increased 16.8%,
while domestic experienced a slight decrease of 5.1% ASKs compared to the previous year,
due to flight cancellations related to adverse weather and operational requirements.
• 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 5.1% 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 11.0% driven primarily by some North American routes with a
small decrease on Asian routes.






















20 November 2023

2

October 2023 highlights



















Group traffic summaryOCTOBER
FINANCIAL YTD
FY24
FY23% *20242023% *+
Passengers carried (000)
1,2761,2502.1%5,4135,0977.1%
Revenue Passenger Kilometres(m)2,654
2,00232.6%11,6508,03146.3%
Available Seat Kilometres (m)3,1572,25540.0%14,2799,15257.3%
Passenger Load Factor (%)84.1%88.8%(4.7 pts)81.6%87.7%(6.1 pts)
Year-to-date RASK
1
vs 2023vs 2023
Group(15.7%)(16.0%)
Short Haul(5.1%)(5.1%)
Long Haul(11.0%)(11.6%)
% 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.

3

Operating statistics table



GroupOCTOBERFINANCIAL YTD
FY24 FY23% *2024
2023% *+
Passengers carried (000)
1,2761,250
2.1%
5,413
5,097
7.1%
Revenue Passenger Kilometres(m)2,654
2,00232.6%11,650
8,03146.3%
Available Seat Kilometres (m)3,1572,255
40.0%14,2799,152
57.3%
Passenger Load Factor (%)84.1%
88.8%(4.7 pts)81.6%87.7%(6.1 pts)
Short Haul Total
OCTOBER
FINANCIAL YTD
FY24 FY23
% *20242023% *+
Passengers carried (000)1,123
1,164(3.5%)
4,7284,7600.1%
Revenue Passenger Kilometres(m)1,1651,1441.9%4,970
4,7166.3%
Available Seat Kilometres (m)
1,3381,242
7.7%
6,0415,356
13.7%
Passenger Load Factor (%)87.1%92.1%(5.0 pts)
82.3%88.1%(5.8 pts)
Domestic
OCTOBERFINANCIAL YTD
FY24 FY23% *2024
2023% *+
Passengers carried (000)835
905(7.8%)3,4963,686
(4.4%)
Revenue Passenger Kilometres(m)
423463
(8.6%)1,798
1,910
(5.1%)
Available Seat Kilometres (m)488514(5.1%)2,1872,1751.4%
Passenger Load Factor (%)
86.7%90.1%
(3.4 pts)82.2%87.8%(5.6 pts)
Tasman / Pacific
OCTOBERFINANCIAL YTD
FY24
FY23% *20242023
% *+
Passengers carried (000)
288259
11.3%1,232
1,07415.7%
Revenue Passenger Kilometres(m)7426819.0%3,172
2,80614.0%
Available Seat Kilometres (m)
85072816.8%
3,8543,18122.2%
Passenger Load Factor (%)
87.3%93.5%(6.2 pts)82.3%88.2%
(5.9 pts)
Long Haul TotalOCTOBER
FINANCIAL YTD
FY24 FY23% *20242023% *+
Passengers carried (000)15386
77.3%685337104.9%
Revenue Passenger Kilometres(m)1,48985873.5%
6,6803,315103.2%
Available Seat Kilometres (m)1,8191,013
79.6%8,2383,796118.8%
Passenger Load Factor (%)81.9%84.7%(2.8 pts)
81.1%87.3%(6.2 pts)
As i aOCTOBER
FINANCIAL YTD
FY24 FY23
% *2024
2023% *+
Passengers carried (000)88
36147.8%
367134
176.0%
Revenue Passenger Kilometres(m)770314145.4%3,1781,176172.4%
Available Seat Kilometres (m)879
376133.4%3,8341,428
170.6%
Passenger Load Factor (%)87.7%83.4%4.3 pts82.9%82.4%0.5 pts
Americas / UK
OCTOBERFINANCIAL YTD
FY24
FY23% *20242023% *+
Passengers carried (000)
655128.0%31820357.9%
Revenue Passenger Kilometres(m)719544
32.0%3,5022,13965.1%
Available Seat Kilometres (m)
94063647.7%4,4042,36887.5%
Passenger Load Factor (%)76.4%85.5%(9.1 pts)79.5%90.3%(10.8 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.

4

Market Announcements
(during the period 30 October 2023 to 19 November 2023)

Air New Zealand schedule update – Pratt & Whitney engine impacts 7 November 2023
• Consolidated flying schedule
• Paused schedule for Hobart and Seoul from April 2024
• External contact centre support to almost double workforce
Air New Zealand now has a clearer understanding of the Pratt & Whitney (P&W) engine
maintenance schedule changes and the impact it will have on our customers.
In July 2023, Pratt & Whitney disclosed a condition affecting the maintenance plan for the Geared
Turbofan (GTF) jet engine fleet. Up to 700 engines globally will be impacted over the next three
years, with the effect on global aviation felt most keenly in the coming year.
“Air New Zealand has 17 A320/321NEO aircraft in its fleet of 108 aircraft, serving Australia, the
Pacific Islands and domestic New Zealand. While this maintenance issue does not present a safety
issue, it has caused Air New Zealand to revise its flight schedule as a result of adjustments made
to the engine maintenance plan,” says Air New Zealand Chief Executive Officer Greg Foran.
“We’ve been able to reorganise most of our schedule by consolidating some flying and moving
aircraft to different routes. Most customers whose flights have been changed will still fly on the same
day, some on international flights will be reaccommodated to services a day either side of their
original booking and some may have a cabin change due to a different aircraft being used.
“We have also taken the difficult decision to pause two of our international routes. Flights connecting
Auckland and Hobart will pause from 5 April 2024, with our Auckland to Seoul service paused from
1 April 2024. The pause on flying to Seoul is to allow more resiliency when the Trent1000 engines
that power our 787 fleet go for regular maintenance due to potential issues with the availability of
spare engines from Rolls Royce to cover the maintenance period.
“While both routes have performed well, we need to ensure we can deliver a reliable service across
the rest of our network and get customers on our most in-demand routes to where they need to be.
Customers will still be able to book to Hobart and Seoul with Air New Zealand, but these flights
won’t be direct and will be partly operated by our partner airlines.
Impacted customers do not need to contact Air New Zealand, they will be contacted in the coming
weeks.
Mr Foran says the impacts of the Pratt & Whitney servicing schedule change are significant and
could impact services for up to two years. Due to engine availability as a result of the P&W
maintenance issues, the airline will have up to four aircraft grounded at any one time. The company
is also managing other supply chain issues which airlines globally are facing as it looks to put
additional fleet cover in place.

5

“Leasing additional aircraft is an option we are looking at closely. Our latest leased Boeing 777-
367ER aircraft is about to enter service and we are considering other lease options.
“Whenever we make changes to our schedule, it results in additional demand on our
contact centre. Given call volumes continue to rise, we have taken the decision to increase
the support we receive from external companies, increasing the number of consultants who respond
to customer queries significantly. We will continue to recruit locally for the contact centre.
“The aviation industry is complex and it’s a difficult time in the aviation eco-system. We appreciate
these changes will disappoint some of our customers, for which we apologise. It’s not the news we
hoped for given our announcement earlier this year that we had purchased new aircraft to add
capacity and assist in meeting ongoing strong demand. Although those new aircraft are still due to
arrive – two new ATRs in late 2024/early 2025, two new A321NEOs in early 2025 together with two
domestic A321s and eight B787s being delivered between 2024 and 2027 – these network and
schedule changes have been required to manage an issue that no one expected just a few months
ago.
“We would like to thank our loyal customers for their ongoing support. We will continue to do
everything we can to ensure stability across our network.”


Media Releases
(during the period 30 October 2023 to 19 November 2023)

Fashion meets flight: Design powerhouse Emilia Wickstead 6 November 2023
onboard to create next Air New Zealand uniform

Air New Zealand has officially revealed globally renowned Kiwi fashion designer Emilia Wickstead
as the partner selected to create its new uniform.
The New Zealand designer has made a name for herself on the world stage, designing clothing for
influential global figures and A-listers. Now, she will be creating New Zealand’s most iconic and
recognisable uniform.
Air New Zealand Chief Customer and Sales Officer Leanne Geraghty says Emilia stood out after
the selection panel were blown away by her concepts.
“We received expressions of interest from more than 40 New Zealand designers and heard pitches
from the country’s leading design talent, showcasing the depth and breadth of New Zealand fashion,
making it an incredibly tough decision. Ultimately, Emilia stood out as the perfect partner.
“Emilia presented outstanding initial designs that were creative, unique, and will set Air New
Zealand apart on the global stage. She also demonstrated her understanding of the importance in
creating a uniform that is both functional and comfortable for our people.
“Her ability to create modern yet timeless pieces perfectly fits with what we were looking for in a
design partner – someone who could create a uniform that our people can wear with pride now and
into the future.

6

“Emilia has built an incredibly successful brand, designing for some of the most high profile
customers in the world and we think our people deserve to be dressed by the very best too. We’re
thrilled to have Emilia onboard and couldn’t be prouder to welcome her to the Air New Zealand
whānau.”
Emilia Wickstead says it’s a privilege to be selected as the next Air New Zealand uniform designer.
“I could not be prouder, or more excited, to have been selected as Air New Zealand’s next uniform
designer. This is a true passion project for me; one that further connects me with my homeland
Aotearoa, and the community and places that I love.
“My approach to the uniform centres around a deep respect for New Zealand’s cultural heritage.
First and foremost, it is inspired by people. I’m a big believer that clothing can be transformative,
uplifting and empowering, and my hope is that the new uniforms will instil a sense of pride and
purpose in Air New Zealand’s incredible, world-class team.
“Emilia Wickstead designs have a timeless quality, with simple yet effective details that lend fresh
modernity and ease. It’s important to me that these uniforms are an extension of this, tempered with
creative twists and innovation to create a distinctive uniform that will stand out for years to come.”
The designer selection was made following a competitive pitch process involving a number of
leading New Zealand designers who were asked to consider key selection criteria including
sustainability, functionality, safety, and te ao Māori.
The next phase of the project will see Air New Zealand collaborate closely with Emilia Wickstead
for design refinements, onboard trials, and uniform wearer consultation before the final designs are
revealed in late 2024.
The Emilia Wickstead Air New Zealand uniforms will be rolled out progressively to more than 5,000
Air New Zealand cabin crew, front of house ground staff, and pilots over the next few years.

Air New Zealand lounges say haere ra to single-use cups 1 November 2023

Air New Zealand has begun the process of removing single-use cups from its lounges. The move
is part of the airline’s commitment to sustainability, including supporting a more circular approach
to waste by creating less of it in the first place.
Air New Zealand’s Chief Sustainability Officer, Kiri Hannifin says the airline is very aware that it has
a greater problem to solve in moving away from fossil fuel.
“This remains our greatest challenge and priority, and we have a significant programme of work
underway. But as the airline navigates the multiple challenges to find a more sustainable fuel
replacement or a lower emissions aircraft, we must double down on the sustainability initiatives we
can action now”, says Hannifin.
“Nearly one million single-use cups are used for hot drinks across lounges each year and another
nine million in our aircraft. These cups are commercially compostable, but there is limited
composting infrastructure in New Zealand that can take them, so most are ending up in landfill.
“At Air New Zealand we have set some very ambitious sustainability goals, including net zero carbon
emissions by 2050. These will require significant changes to our fleet and operations to transition
away from fossil fuel as much as we can.”

7

“But we can’t just wait for these big initiatives. Waste to landfill also contributes to our carbon
footprint. Managing waste better is within our control and removing single-use cups in our lounges
is a step in the right direction. Every step we take, including the small ones, will reduce the airline’s
environmental impact.
“We know that having a hot drink from our lounges, especially before an early flight, is something
many of our customers enjoy. Rest assured our customers will still be able to get their coffee fix
with us using one of our ceramic cups or their own reusable cup.”
The process will start in Invercargill at the beginning of November with the roll out to New Zealand
lounges* expected to be completed by the end of January.
Air New Zealand appreciates the support of our customers to remove nearly one million single-use
cups from our waste stream.
More information for customers can be found here.

*Excludes Christchurch Regional Express