Air New Zealand provides half year earnings guidance

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


25 November 2024
Air New Zealand provides half year earnings guidance
At its annual results announcement in August 2024, Air New Zealand outlined several factors that
had influenced its financial performance. As expected, many of these factors have impacted
performance for the 2025 financial year to date, albeit the airline has taken proactive steps to
mitigate these. In parallel, the airline continues to drive innovations and customer initiatives
including updating its Seats-to-Suit offering and deploying live chat capability to reduce customer
wait times and cost to serve. The airline also continues to make investments across the business
which are contributing toward operational efficiencies, customer satisfaction and profitability.
Aircraft availability issues resulting from global engine maintenance delays have seen up to six
Airbus neo aircraft and up to four Boeing 787 aircraft out of service across the first half of this
financial year. This represents over 16 percent of Air New Zealand’s entire jet fleet. Based on
current assumptions and recent discussions with engine manufacturers, the airline does not expect
these availability issues to ease until early 2026. However, the airline continues to explore all
options to improve capacity including further aircraft leases.
Early signs of recovery in corporate travel have recently been observed. Government travel
demand remains subdued. Targeted reductions in competitive capacity on the North American
market over the peak Northern Winter season have also been noted.
In the context of the above factors, and noting several one-off items in the first half, the airline
currently expects earnings before taxation for the first half of the 2025 financial year to be in the
range of $120 million to $160 million. This includes approximately $10 million of unused travel
credit breakage, $30 million of compensation from engine manufacturers relating to prior periods
(as part of a broader compensation package) and a gain of approximately $20 million on the sale
and leaseback of four A320 aircraft. This guidance range also assumes an average jet fuel price
of US$91 per barrel for the first half.
Given the ongoing uncertainties in both the trading and operating environment, the airline cautions
against extrapolating first half guidance for the 2025 financial year to the full year. Full year
guidance will be provided when the airline has sufficient certainty to do so, currently expected to
be on or around interim results.
Ends
This announcement has been authorised for release to NZX and ASX by Jennifer Page, General Counsel & Company
Secretary (jennifer.page@airnz.co.nz).

For investor relations queries, please contact: For media enquiries, please contact:
Kim Cootes, Head of Investor Relations Air New Zealand Communications
kim.cootes@airnz.co.nz media@airnz.co.nz
+64 27 297 0244 +64 21 747 320