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

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


November 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 43.5%, short-haul international ASKs increased 13.4%, while domestic ASKs were down
slightly, by 2.5%, compared to 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
5.6% 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 11.2% driven primarily by some North American routes with a small
decrease on Asian routes.























22 December 2023

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November 2023 highlights




















Group traffic summary
NOVEMBERFINANCIAL YTD
FY24 FY23% *20242023% * +
Passengers carried (000)1,2981,2484.0%6,7116,3456.5%
Revenue Passenger Kilometres(m)2,4652,07518.8%14,11510,10640.6%
Available Seat Kilometres (m)3,0022,42124.0%17,28111,57350.3%
Passenger Load Factor (%)82.1%85.7%(3.6 pts)81.7%87.3%(5.6 pts)
Year-to-date RASK
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vs 2023vs 2023
Gro up(15.2%)(15.4%)
Sho rt Haul(5.6%)(5.6%)
Long Haul(10.6%)(11.2%)
% 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


GroupNOVEMBERFINANCIAL YTD
FY24 FY23% *20242023% * +
Passengers carried (000)1,2981,2484.0%6,7116,3456.5%
Revenue Passenger Kilometres(m)2,4652,07518.8%14,11510,10640.6%
Available Seat Kilometres (m)3,0022,42124.0%17,28111,57350.3%
Passenger Load Factor (%)82.1%85.7%(3.6 pts)81.7%87.3%(5.6 pts)
Short Haul T otalNOVEMBERFINANCIAL YTD
FY24 FY23% *20242023% * +
Passengers carried (000)1,1721,1531.6%5,9005,9140.4%
Revenue Passenger Kilometres(m)1,2081,1227.6%6,1775,8386.5%
Available Seat Kilometres (m)1,3791,2916.9%7,4216,64712.4%
Passenger Load Factor (%)87.6%86.9%0.7 pts83.2%87.8%(4.6 pts)
DomesticNOVEMBERFINANCIAL YTD
FY24 FY23% *20242023% * +
Passengers carried (000)882902(2.2%)4,3784,588(3.9%)
Revenue Passenger Kilometres(m)456464(1.9%)2,2532,374(4.5%)
Available Seat Kilometres (m)515528(2.5%)2,7022,7030.6%
Passenger Load Factor (%)88.5%87.9%0.6 pts83.4%87.8%(4.4 pts)
Tasman / PacificNOVEMBERFINANCIAL YTD
FY24 FY23% *20242023% * +
Passengers carried (000)29025215.4%1,5221,32515.6%
Revenue Passenger Kilometres(m)75265814.4%3,9243,46414.1%
Available Seat Kilometres (m)86476213.4%4,7193,94420.5%
Passenger Load Factor (%)87.0%86.3%0.7 pts83.2%87.8%(4.6 pts)
Long Haul T otalNOVEMBERFINANCIAL YTD
FY24 FY23% *20242023% * +
Passengers carried (000)1269533.6%81143289.2%
Revenue Passenger Kilometres(m)1,25795331.9%7,9384,26887.2%
Available Seat Kilometres (m)1,6231,13043.5%9,8604,927101.5%
Passenger Load Factor (%)77.5%84.3%(6.8 pts)80.5%86.6%(6.1 pts)
AsiaNOVEMBERFINANCIAL YTD
FY24 FY23% *20242023% * +
Passengers carried (000)674261.1%434176148.7%
Revenue Passenger Kilometres(m)60337063.2%3,7821,546146.2%
Available Seat Kilometres (m)70443063.5%4,5371,859145.8%
Passenger Load Factor (%)85.7%85.9%(0.2 pts)83.3%83.2%0.1 pts
Americas / UKNOVEMBERFINANCIAL YTD
FY24 FY23% *20242023% * +
Passengers carried (000)595312.1%37725648.4%
Revenue Passenger Kilometres(m)65458412.0%4,1562,72253.7%
Available Seat Kilometres (m)91970031.3%5,3233,06874.7%
Passenger Load Factor (%)71.1%83.4%(12.3 pts)78.1%88.7%(10.6 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
ac
counting 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
onl
y.

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Market Announcements
(during the period 20 November 2023 to 21 December 2023)
Air New Zealand updates progress on 1H FY24 earnings guidance 13 December 2023
Following a further two months of operating performance since guidance was given, Air New
Zealand now expects first half earnings for FY24 to be around the bottom end of its $180 million to
$230 million range initially provided on 12 October.
Early signs of softness in domestic travel, particularly corporate and government travel, which were
noted in the 12 October update have continued, with late booking activity remaining weaker
compared to the prior year. More recently, the airline has noted softer leisure demand in both the
Domestic and Trans-Tasman markets.
Demand for travel to North America continues to be solid, albeit the airline is observing additional
pricing pressure due to increased competition from US carriers. Asia and Pacific Islands demand
remains unchanged. Air New Zealand will continue to monitor booking patterns closely.
As previously announced, $45 million of Covid related credits that are highly unlikely to be
redeemed by the extended expiry date are included within the above guidance range.
The airline continues to address the ongoing impacts of the global Pratt & Whitney engine issues
on the business. In addition, economic and inflation risks remain and as a result, Air New Zealand
is not providing full year guidance at this time. The airline cautions against extrapolating first half
guidance and currently expects the second half of the financial year to be increasingly challenging.

Moody’s upgrades Air NZ to Baa1 rating 22 November 2023
Moody’s Investors Service has upgraded the issuer rating and senior unsecured debt rating for Air
New Zealand to Baa1 from Baa2. This is a one notch upgrade, and the rating outlook remains
stable.
This follows the decision by Moody’s to upgrade the airline’s baseline credit assessment to baa3
from ba1 to reflect that Air New Zealand’s standalone credit profile has returned to pre-pandemic
levels.
At the same time, Moody’s has upgraded the senior unsecured medium-term note programme
rating to (P)Baa1 from (P)Baa2.
Attached
is the announcement released by Moody’s Investors Service.

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Media Releases
(during the period 20 November 2023 to 21 December 2023)
Winging it home for the holidays: Air New Zealand to fly 15 December 2023
a million customers across the country this Christmas

Air New Zealand is gearing up for an extraordinary Christmas, with more than a million customers
expected to travel on the domestic network alone, and another 700,000 customers to international
destinations between 15 December 2023 and 31 January 2024.

Air New Zealand Chief Operating Officer, Alex Marren, says the airline has been working hard to
ensure a seamless journey for customers over the busy holiday season.

"Ensuring a smooth travel experience for our customers in the days leading up to Christmas
requires a coordinated effort across all our teams, from flight planners to airport staff, pilots, and
cabin crew – remarkably this means that nearly 1200 tasks such as loading bags, monitoring
weather, and ensuring the weight and balance of the aircraft. Up to 40 people across the airline
come together on any given flight to do this and ensure that we deliver our customers to their
destinations safely and on-time.

The airline's busiest day of the year will be Friday 22 December with nearly 50,000 people
planning to take off to destinations across Aotearoa and overseas. The busiest route domestically
is Auckland to Christchurch, with Wellington and Queenstown following close behind.

One million customers will be travelling across Aotearoa this summer, from Invercargill to Kerikeri.
Australian cities continue to be the most popular destinations for Kiwi customers visiting friends
and family with 350,000 customers booked to travel to Melbourne, Sydney and Brisbane over the
holiday period and 330,000 customers are set to take off to destinations around the remainder of
the international network.

Ms Marren said Air New Zealand is well equipped to handle the Christmas rush but urges
customers to plan ahead to ensure smooth and uneventful travel through the airport.


Air New Zealand announces BETA’s ALIA as launch aircraft for Mission 6 December 2023
Next Gen Aircraft programme

• Air New Zealand selects BETA’s ALIA CTOL as its first next generation aircraft
• The electric aircraft has been purchased to meet the airline’s goal of flying a commercial
demonstrator by 2026
• NZ Post announced as cargo partner for commercial demonstrator
• Announcement in early 2024 revealing the two frontrunner airports to be home to next
generation aircraft
Air New Zealand has announced the ALIA as the airline’s first purchase of a next generation
aircraft in its Mission Next Gen Aircraft programme.

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Designed by electric aerospace company BETA Technologies, the battery-powered all-electric
aircraft is expected to join Air New Zealand’s fleet in 2026. Air New Zealand is purchasing the
conventional take-off and landing version of the ALIA.

The announcement follows an 18-month period of evaluation and diligence by Air New Zealand.
Through the airline’s Mission Next Gen Aircraft programme, it sought and received ideas and
insights from 30 organisations, selecting four partners to work closely with on its goal of launching
commercial flights using next generation aircraft in 2026. BETA’s ALIA is the first commercial
order in the programme.

Air New Zealand will initially operate the aircraft as a cargo only service in partnership with New
Zealand Post, on a route being selected through an expressions of interest (EOI) process with
airports across Aotearoa.

Air New Zealand Chief Executive Officer Greg Foran says the purchase cements Air New
Zealand’s commitment to flying lower-emissions aircraft in New Zealand.

“This is a small but important step in a much larger journey for Air New Zealand. There is a lot of
work ahead of us, but we are incredibly committed, and this purchase marks a new chapter for the
airline.”

“Decarbonising aviation isn’t easy, and we have a lot of work to do. We need to accelerate the
pace of change in the technology, infrastructure, operations and regulation.”

“While this aircraft will add to, not replace our existing fleet, it is a catalyst for that change. By
flying the ALIA, we hope to advance our knowledge and the transformation needed in the aviation
system in Aotearoa for us to fly larger, fleet replacing, next generation aircraft from 2030.”

BETA Chief Executive Officer Kyle Clark says he applauds Air New Zealand’s approach to
decarbonising aviation.

“Over the past year plus of partnership, collaboration, and diligence, we’ve seen Air New
Zealand’s forward-thinking, yet pragmatic and methodical approach to innovation.”

“We are gratified by the airline’s confidence in our technology as a solution that will meet their
operational needs and look forward to continuing to work hand-in-hand.”

Note to editors:
• Air New Zealand will fly the conventional take-off and landing (CTOL) version of the ALIA.
• Air New Zealand has a firm order for one aircraft with options for an additional two aircraft,
and rights for a further 20 aircraft.
• The ALIA has flown over 480kms in one flight in testing. For Air New Zealand’s initial flights,
it is looking at routes of around 150kms in length.
• Given the shorter length of the flights Air New Zealand intends to operate, it will likely fly the
ALIA at a lower altitude of between 1500 to 3000 metres.
• The ALIA weighs three tonnes, is just over 12 metres long, and will fly at a speed of up to
270kms an hour.
• A full charge of the battery is anticipated to take between 40-60 minutes.
• Aviation has a rigorous safety and risk management culture. The aircraft will only be brought
into service once it has passed testing and is certified as safe to fly by the New Zealand Civil
Aviation Authority.