Air New Zealand reports 2025 Interim Result
20 February 2025
Air New Zealand delivers solid interim result, announces share buy-back
Summary
• Earnings before taxation of $155 million
• Net profit after taxation of $106 million
• Network capacity down 4 percent, with up to 5 narrowbody and 3 widebody jets
grounded due to additional global engine maintenance requirements
• Unimputed interim ordinary dividend of 1.25 cents per share declared
• Share buy-back of up to $100 million announced
1
Air New Zealand has today announced earnings before taxation of $155 million for the first
half of the 2025 financial year, achieving a result at the upper end of the guidance range
provided to the market in November 2024. Net profit after taxation was $106 million.
Chair Dame Therese Walsh said the result highlights the airline’s resilience and adaptability,
amid a continuation of significant operational and economic headwinds that have persisted
since the second half of the 2024 financial year.
“This is a strong result when you consider the headwinds we have been navigating for almost
a year now. It reflects the hard mahi and dedication of our 11,600-strong Air New Zealand
whānau and the effectiveness of the actions we have taken, and continue to take, to mitigate
these challenges and position the airline for future success.”
Dame Therese went on to say that based on the airline’s balance sheet strength and the result
announced today, shareholders will receive an unimputed interim ordinary dividend of 1.25
cents per share. The dividend will be paid on 19 March 2025, to shareholders on record as at
7 March 2025.
She also noted that the Board was pleased to announce the commencement of a share buy-
back of up to $100 million, reflecting confidence in the airline’s long-term outlook.
“Air New Zealand’s strong balance sheet, liquidity and financial discipline provides us with the
flexibility to successfully manage the short-term challenges we face, while also continuing to
invest in our future and return capital to our shareholders.
“The share buy-back programme we have announced today reflects our confidence in the
strength of Air New Zealand’s fundamentals and our commitment to delivering value to our
shareholders, while ensuring we remain well-positioned for the future.”
On the financial performance for the half, Chief Executive Officer Greg Foran praised his team,
noting the significant challenges they faced, including aircraft groundings associated with
1
This includes an on-market buy-back component through the NZX and ASX and an off-market buy-
back component under which Air New Zealand will, following any on-market acquisitions, acquire a
corresponding number of shares held by the Crown, in order to maintain the Crown's shareholding.
additional engine maintenance requirements impacting Pratt & Whitney and Rolls-Royce
customers globally.
“Investment in modern, fuel-efficient aircraft is an important part of Air New Zealand’s fleet
strategy. But with over $1 billion worth of our newest, most efficient aircraft grounded at times,
it’s been a tough year so far. Delivering the performance we have and maintaining such a
strong balance sheet, is a real credit to our people and I’m proud of what we have achieved.”
Passenger revenue decreased five percent to $2.9 billion, driven by a four percent reduction
in capacity due to fleet constraints and lower domestic demand, particularly in the corporate
and government segments. Also included within passenger revenue for the half is $10 million
of credit breakage for unused customer credits considered highly unlikely to be redeemed.
This compares to $45 million of credit breakage recognised in the same period last year.
Cost control remained a key focus throughout the period, as the airline navigated aircraft
groundings caused by global additional engine maintenance requirements. Despite receiving
$94 million in compensation from engine manufacturers, the airline estimates that first-half
earnings would have been approximately $40 million higher had it been able to operate aircraft
as intended. This financial impact reflects the adverse economics of suboptimal deployment
of aircraft, significant overhead costs associated with managing disrupts and resiliency
measures taken to protect market share.
Mr Foran said that while the airline is pleased to have received some compensation, it is
frustrating to still be in this position.
“While compensation has played an important role in offsetting some of the financial impact of
the delays, it falls well short of making the airline whole for the operational and economic
losses sustained.
“We strive to deliver a reliable experience for our customers, however with four percent less
capacity available largely due to the engine maintenance delays, this has been a real
challenge for the airline.”
Average jet fuel prices were 16 percent lower overall for the period, and total fuel costs were
also down around 15 percent or $133 million. This was primarily driven by reduced capacity
due to fleet constraints, as well as lower Singapore jet fuel prices.
Non-fuel operating cost inflation of approximately $100 million for the half continues to weigh
heavily on the airline’s financial performance. With landing charges, labour and engineering
materials leading the increases, the non-fuel operating cost uplift of 5 percent for the period
brings the cumulative impact of inflation across the past five years to 25 to 30 percent.
The airline’s transformation initiatives are starting to deliver measurable benefits, and the
airline expects to achieve the 2025 financial year contribution targets outlined at its recent
investor day.
Looking ahead to the remainder of the financial year, Mr Foran acknowledged that 2025 is set
to be particularly challenging financially, as the airline navigates its first full 12-month period
with up to 11 jets (six narrowbody and five widebody) out of service at any time.
“This is a significant volume of aircraft to have on the ground, but we continue to take steps to
build resilience into our operations through schedule adjustments, leasing additional engines,
and prioritising customer experience improvements. Despite these challenging times, there is
much to look forward to in the coming months.”
By this time next year, Air New Zealand expects to have more than half of its Boeing 787
Dreamliner fleet modernised with completely new cabin interiors, including the latest Business
Premier Luxe™ seats.
Additional leased engines are expected to arrive shortly to bolster network resilience, and a
new uniform will be revealed in the coming months. The airline also plans to trial innovations
such as digital bag tags and onboard domestic Wi-Fi, alongside the arrival of an all-electric
demonstrator aircraft mid-calendar year.
“The road ahead is not without obstacles, but our balance sheet strength, our clear strategic
priorities, and the skill and commitment of our team position us well to navigate the year
ahead,” said Mr Foran.
Outlook
The airline notes that the 2025 financial year will be the first full 12-month period impacted by
global additional engine maintenance requirements on the Pratt & Whitney and Rolls-Royce
engines that power its Airbus neo and Boeing 787 Dreamliner fleets.
For the second half of the financial year, Air New Zealand’s best estimate currently is that it
will have up to 11 jet aircraft grounded at times as a result of these requirements, however the
airline notes a large degree of uncertainty exists regarding engine maintenance timeframes.
In light of these aircraft groundings, the associated diseconomies of scale and inefficiencies,
and potential compensation, the airline currently expects performance for the second half of
the 2025 financial year to be significantly lower than the first half.
Given the degree of uncertainty surrounding the number of grounded aircraft across the
second half and any associated compensation, the airline is not in a position to provide
guidance at this time.
Ends
This announcement has been authorised for release by Jennifer Page, General Counsel &
Company Secretary.
For investor relations queries, please contact:
Kim Cootes Head of Investor Relations
Email: kim.cootes@airnz.co.nz
Phone: +64 27 297 0244
For media enquiries, please contact:
Air New Zealand Communications
Email: media@airnz.co.nz
Phone: +64 21 747 320
---
AIR NEW ZEALAND 2024 INTERIM RESULTS
1
Investor presentation
20 February 2025
NZX: AIR | ASX:AIZ | US OTC: ANZLY
AIR NEW ZEALAND 2025 INTERIM RESULTS
2
2
AIR NEW ZEALAND 2025 INTERIM RESULTS
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This presentation is given on behalf of Air New Zealand Limited (NZX: AIR
and AIR030; ASX: AIZ). The information in this presentation:
•is provided for general purposes only and is not an offer or invitation
for subscription, purchase, or a recommendation of securities in
Air New Zealand
•should be read in conjunction with, and is subject to, Air New Zealand’s
condensed Group interim financial statements (‘interim financial
statements’) for the six months ended 31 December 2024, prior annual
and interim reports and Air New Zealand’s market releases on the NZX
and ASX
•is current at the date of this presentation, unless otherwise stated.
Air New Zealand is not under any obligation to update this presentation
after its release, whether as a result of new information, future events
or otherwise
•may contain information from third-parties. No representations or
warranties are made as to the accuracy or completeness of such
information
•refers to the six months ended 31 December 2024 unless otherwise
stated
•contains forward-looking statements of future operating or financial
performance. The forward-looking statements are based on
management's and directors’ current expectations and assumptions
regarding Air New Zealand’s businesses and performance, the
economy and other future conditions, circumstances and results.
These statements are susceptible to uncertainty and changes in
circumstances. Air New Zealand’s actual future results may vary
materially from those expressed or implied in its forward-looking
statements and undue reliance should not be placed on any forward-
looking statements
•contains statements relating to past performance which are provided for
illustrative purposes only and should not be relied upon as a reliable
indicator of future performance
•is expressed in New Zealand dollars unless otherwise stated and
figures, including percentage movements, are subject to rounding
The Company, its directors, employees and/or shareholders shall have no
liability whatsoever to any person for any loss arising from this
presentation or any information supplied in connection with it. Nothing in
this presentation constitutes financial, legal, regulatory, tax or other advice.
Non-GAAP financial information
The following non-GAAP measures are not audited: CASK, Net Debt,
Gross Debt, EBITDA, and RASK. Amounts used within the calculations are
derived from the interim financial statements where possible. The interim
financial statements are subject to review by the Group's external auditors.
The non-GAAP measures are used by management and the Board of
Directors to assess the underlying financial performance of the Group in
order to make decisions around the allocation of resources.
Refer to slide 33 for a glossary of the key terms used in this presentation.
FORWARD-LOOKING STATEMENTS AND DISCLAIMER
AIR NEW ZEALAND 2025 INTERIM RESULTS
3
AIR NEW ZEALAND 2025 INTERIM RESULTS 3
BUSINESS UPDATE
GREG FORAN
CHIEF EXECUTIVE OFFICER
AIR NEW ZEALAND 2025 INTERIM RESULTS
4
Now over 4.6 million members worldwide
14% annual growth in
Airpoints
TM
membership
$155m
earnings before taxation
Includes $10m of unused credit breakage
ASK’s down 4%
With up to 8 jet fleet grounded due to additional
engine maintenance requirements globally on Pratt &
Whitney and Rolls-Royce engines
1.25 cps
unimputed ordinary dividend
Declared for 1H 2025
4
AIR NEW ZEALAND 2025 INTERIM RESULTS
Loyalty members
Up 10% on 1H 2024
Up to $100m
Share buy-back
announced
1H 2025 – delivering a solid result
Best Airline in
the world
Awarded by Condé Nast, Readers Choice UK
$257m
Cargo revenue
Up 6% on 1H 2024 and above pre-Covid levels
4.8m
8.1m
Passengers flown
Down 3% on 1H 2024
~$40m adverse impact to
1H 2025 earnings
From aircraft availability challenges, net of
compensation
AIR NEW ZEALAND 2025 INTERIM RESULTS
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5
AIR NEW ZEALAND 2025 INTERIM RESULTS
5
Up to 11 aircraft expected to be grounded at times in 2H 2025
Proactively managing elevated levels of grounded
aircraft from global engine maintenance delays
5 - 6
Grounded
1
Actions we have taken to date:
Swiftly negotiated leased aircraft and
engines. Expect two additional leased
engines in 2H 2025
Two previously disclosed leased Airbus A321
aircraft arriving in 2025
Increased inventory of parts and spares
Network and schedule adjustments,
including pausing of Chicago and Seoul
Leveraging our longstanding OEM relationships
1
Number of aircraft grounded at times due to global additional engine maintenance requirements on the PW1100 engines on our neo fleet and Rolls-Royce engines on our Boeing 787 Dreamliner fleet.
Narrowbody
Widebody
7- 8
Grounded
1
Narrowbody
Widebody
Grounded
1
10 - 11
Narrowbody
Widebody
2H 2024
1H 2025
2H 2025E
AIR NEW ZEALAND 2025 INTERIM RESULTS
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6
AIR NEW ZEALAND 2025 INTERIM RESULTS
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6
TASMAN
PACIFIC ISLANDS
ASIA
NORTH AMERICA
NEW ZEALAND
•Market capacity normalising after significant
growth in the past 1-2 years
•Singapore, Japan and Bali continue to perform
well
•Cargo performance a highlight, with greater
volumes of trans-shipments
•Strong performance 1H 2025, with solid
bookings into early 2H 2025
•Market capacity up 2-3% overall with Air
New Zealand flat
•Strong passenger share ahead of capacity
•Government and corporate demand has remained soft, SME resilient
•Domestic leisure demand continues to hold up
•Looking to grow jet route capacity on select routes
Stable performance across most markets
•Passenger volumes up on prior
year, strong demand outlook into
2H 2025
•Stable market capacity and strong
passenger share ahead of capacity
•Market capacity stabilising following significant growth of around
50% in the prior year
•Premium cabins continue to perform well
•USpoint of origin sales remain strong
AIR NEW ZEALAND 2025 INTERIM RESULTS
7
7
AIR NEW ZEALAND 2025 INTERIM RESULTS
7
Next gen revenue management
tool now rolled out to all route
groups
What we said at
2024 Investor Day:
Initiatives implemented this half include:
Ancillary initiatives such as Seats
to Suit product
Digital enhancements driving cost
efficiencies, such as Live Chat
1H 2025
1H 2025 progress:
Transformation initiatives on track to deliver
~$100 million in EBITDA benefits in 2025
~$40m
Increased payment options driving
higher Airpoints
TM
store sales
AIR NEW ZEALAND 2023 ANNUAL RESULTS
8
AIR NEW ZEALAND 2025 INTERIM RESULTS 8
FINANCIAL UPDATE
RICHARD THOMSON
CHIEF FINANCIAL OFFICER
AIR NEW ZEALAND 2025 INTERIM RESULTS
9
9
AIR NEW ZEALAND 2025 INTERIM RESULTS
9
•Operating revenue of $3.4 billion, down 2%
•Passenger revenue of $2.9 billion, down 5%
•Cargo revenue of $257 million, up 6%
•Earnings before taxation of $155 million, down 16%
•Net profit after tax of $106 million, down 18%
•Liquidity of $1.8 billion
1
•Net debt to EBITDA of 0.9x
•Unimputed ordinary interim dividend of 1.25 cents per
share equating to a 69% payout ratio
2
1
As at 31 December 2024, includes $1.5 billion cash and $250 million in undrawn funds under the revolving credit facility.
2
The airline’s policy is to pay ordinary dividends equal to between 40% to 70% of underlying net profit after tax (underlying NPAT), subject to the Board's discretion. The payout ratio for each of the interim and final dividends is calculated
based on the rolling 12-month NPAT, which is divided by two, to reflect the six-monthly period.
Covid-19 impacted
period
Earnings/(Loss) before taxation
($ millions)
1H 2025 financial summary
(105)
(376)
299
185
155
1H 20211H 20221H 20231H 20241H 2025
AIR NEW ZEALAND 2025 INTERIM RESULTS
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10
AIR NEW ZEALAND 2025 INTERIM RESULTS
10
A solid result after adjusting for the impact of
engine delays, net of compensation
155
~120 to
~150
(94)
195
185
DEC 2024
EARNINGS
BEFORE
TAXATION
ESTIMATED
IMPACT OF
ENGINE
ISSUES
COMPENSATION
RECEIVED
DEC 2024
COMPARABLE
EARNINGS
BEFORE
TAXATION
DEC 2023
EARNINGS
BEFORE
TAXATION
Earnings before taxation adjusted for impact of engine issues
($ millions)
~$40 million
residual adverse impact to
earnings, despite
compensation of
$94 million in 1H 2025
AIR NEW ZEALAND 2025 INTERIM RESULTS
11
11
AIR NEW ZEALAND 2025 INTERIM RESULTS
11
Additional commentary
•The waterfall chart includes:
‒Compensation of $94 million within other
revenue, of which ~$30 million relates to
other periods
‒Gain on sale and leaseback of $3 million
within other expenses, less than guided
to in November due to timing, per the
final contract terms
‒Transformation initiatives for 1H 2025 (as
discussed on slide 7)
• Landing charges, labour and engineering
materials driving inflationary uplift of 5% for
1H 2025. Rate only impact on key P&L lines
as follows:
Profitability waterfall
1
For further details on fuel cost movement, refer to slide 22.
2
Full-time equivalent staff levels decreased 0.5% to ~11,600.
1H 2025 price
change
Maintenance, aircraft operations
& passenger services
7%
Labour5%
Sales, marketing and other
expenses
2%
AIR NEW ZEALAND 2023 ANNUAL RESULTS
12
12
AIR NEW ZEALAND 2025 INTERIM RESULTS 12
•Reported CASK increased 2.9%, largely due to reduced capacity, ongoing
inflationary pressures and inefficiencies associated with fleet constraints
•Excluding the impact of fuel price movement, foreign exchange, and third-party
maintenance in the prior period, underlying CASK increased 6.7% due to:
–Non-fuel operating cost inflation of ~5% across the cost base
–Diseconomies of scale and inefficiencies resulting from significant levels of
grounded aircraft
1H 2025 CASK adjusted for
impact of engine maintenance
delays
Fleet constraints have led to a temporary
deterioration in CASK
AIR NEW ZEALAND 2023 ANNUAL RESULTS
13
13
AIR NEW ZEALAND 2025 INTERIM RESULTS 13
600
650
700
750
800
850
900
950
1,000
60708090100110120
Unhedged
Hedged
Fuel hedging
•Hedge portfolio structured to protect against upside
movements and allow participation to downward price
movements through collars
•Currently hedging Brent Crude only; exposed to pricing
movements in the crack spread
1
Assumes an average jet fuel price of USD90 per barrel for 2H 2025 and a NZD/USD rate of 0.5670. Forecast date of 6 February 2025. Further
information on fuel movements can be found in the fuel waterfall on slide 22.
Fuel hedge position
(as at 6 Feb 2025)
Period
Hedged volume
(in barrels)
% hedged
2H 20253,680,00089%
1H 20262,430,00060%
2H 2025 Fuel cost
1
sensitivity (inclusive of hedging)
NZD cost of fuel (millions)
Singapore Jet USD/barrel
Foreign exchange hedging
•US dollar is ~67% hedged for 2H 2025 at NZD/USD ~0.6000
Fuel hedging and FX update
2025 Fuel cost outlook
AIR NEW ZEALAND 2025 INTERIM RESULTS
14
14
AIR NEW ZEALAND 2025 INTERIM RESULTS
14
Actual and forecast aircraft capital expenditure
1
•Forecast investment of $3.5 billion in aircraft
and associated assets through to FY2029
2
‒Timing of new 787 deliveries remains
subject to Boeing production rates
‒Approximately $180 million relates to
weaker New Zealand Dollar compared to
FY2024
•Chart includes the forecast cost of interior
retrofit of 14 existing 787 aircraft and 6 777-
300ER aircraft
‒Estimated aggregate cost of ~$515
million for both programmes, phased
over the next ~3 years
‒First 787 retrofit currently expected to be
in-service first half calendar year 2025
‒First 777-300ER retrofit expected to
retrofitted by late calendar year 2026
1
Includes progress payments on aircraft and aircraft improvements (e.g. refurbishment); excludes engine maintenance. Please refer to slide 31 for fleet delivery table.
2
Based on expected delivery dates, not contractual delivery dates.
Fleet investment update
0
200
400
600
800
1,000
1,200
1,400
2020202120222023202420252026202720282029
$ millions
HistoricalForecast 787 &
777-300ER
retrofit
Forecast excl. retrofit
AIR NEW ZEALAND 2025 INTERIM RESULTS
15
15
AIR NEW ZEALAND 2025 INTERIM RESULTS
15
Invest in core operations
Maintain financial resilience and flexibility
DistributionsGrowth capex
Underpinned by our commitment to maintain investment grade credit rating metrics
• Target liquidity range of $1.2 billion to $1.5 billion
• Net Debt to EBITDA ratio of 1.5x to 2.5x
• Fleet and infrastructure investments above WACC through the cycle
• Investment to support the airline’s decarbonisation ambitions
• Ordinary dividend pay-out ratio of
40% to 70% of underlying net
profit after tax (NPAT)
1
• Return excess capital via special
dividends or share buybacks
• Disciplined investment in value
accretive capex
• Target ROIC above pre-tax
WACC
•Delivery of 30
th
ATR72-600 for the regional domestic
network
•Largest SAF purchase to date completed (represents
~1.6% of total estimated fuel consumption for FY2025)
•~$40 million unimputed ordinary interim dividend
declared
•Announced share buy-back of up to $100 million
•Commenced Christchurch Engine Centre JV expansion
•~$285m debt and leases paid down
•~$290m of cash collateral released from restricted
cash, with further working capital optimisation planned
for FY2026
•~$190 million from sale and leaseback of four A320s
PROGRESS MADE IN 1H 2025
Further progressing towards our capital
management framework targets
1
The payout ratio for each of the interim and final dividends is calculated based on the rolling 12-month NPAT, which is divided by two, to reflect the six-monthly period.
AIR NEW ZEALAND 2024 INTERIM RESULTS
16
16
AIR NEW ZEALAND 2025 INTERIM RESULTS
OUTLOOK
GREG FORAN
CHIEF EXECUTIVE OFFICER
AIR NEW ZEALAND 2024 INTERIM RESULTS
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17
AIR NEW ZEALAND 2025 INTERIM RESULTS
17
Sector
2024 ASKs
(millions)
1H 2025
Actuals
(on 1H 2024)
2H 2025
Estimate
(on 2H 2024)
FY2025 Estimated
Capacity
1
Domestic6,620
(3%)1% to (1%)(1%) to (2%)
Tasman and Pacific
Islands
11,655
(1%)0% to 2% up0% to 1%
International long-haul23,792
(7%)(1%) to (3%)(4%) to (5%)
Group
42,067
(4%)0% to (2%)(2%) to (3%)
1
Compared to FY2024 levels.
FY2025 capacity outlook, 2H 2025 uncertain
due to engine constraints
AIR NEW ZEALAND 2025 INTERIM RESULTS
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18
AIR NEW ZEALAND 2025 INTERIM RESULTS
18
•The airline notes that the 2025 financial year will be the first full 12-month period impacted by global
additional engine maintenance requirements on the Pratt & Whitney and Rolls-Royce engines that
power its Airbus neo and Boeing 787 Dreamliner fleet.
•For the second half of the financial year, Air New Zealand’s best estimate currently is that it will have
up to 11 jet aircraft grounded at times as a result of these requirements, however the airline notes a
large degree of uncertainty exists regarding engine maintenance timeframes.
•In light of these aircraft groundings, the associated diseconomies of scale and inefficiencies, and
potential compensation, the airline currently expects performance for the second half of the 2025
financial year to be significantly lower than the first half.
•Given the degree of uncertainty surrounding the number of grounded aircraft across the second half
and any associated compensation, the airline is not in a position to provide guidance at this time.
2025 Outlook
AIR NEW ZEALAND 2025 INTERIM RESULTS 20
SUPPLEMENTARY
INFORMATION
AIR NEW ZEALAND 2024 INTERIM RESULTS
21
21
AIR NEW ZEALAND 2025 INTERIM RESULTS
• Cargo revenue of $257 million, up 6% on prior
comparative period. Key drivers include:
‒Volumes up driven by increased load factors
and a higher proportion of trans-shipments,
particularly out of Asia
‒Partly offset by capacity and yield declines,
reflecting competitive market conditions
Cargo performance
Cargo revenue up 6%
driven by:
Volumes12%
Yields(6%)
AIR NEW ZEALAND 2025 INTERIM RESULTS
22
22
AIR NEW ZEALAND 2025 INTERIM RESULTS
22
746
879
(20)
(121)
13
(5)
DEC 2023
FUEL COST
VOLUMEUNDERLYING
PRICE
NET HEDGING
IMPACT
FX
MOVEMENTS
DEC 2024
FUEL COST
$ millions
$108 million
effective decrease
in fuel price
Decrease in
jet fuel price
US$109 to
US$91
per barrel
Dec 2024
hedge loss
of $18m
vs
Dec 2023
hedge loss
of $5m
Into plane costs
•1H 2025 $112
US$/barrel
•1H 2024 $128
US$/barrel
(12%)
Fuel cost movement
1
Sustainable aviation fuel (SAF) costs of $9 million and New Zealand Emissions Trading Scheme (NZETS) expenses of $19 million are included within fuel costs for the period.
1
AIR NEW ZEALAND 2025 INTERIM RESULTS
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23
AIR NEW ZEALAND 2025 INTERIM RESULTS
23
Dec 2024Jun 2024
Capital management targets
(effective from FY2024)
Gross debt
1
(2,964)(2,816)
Cash, restricted deposits and net open
derivatives
1
2,0832,044
Net debt
1
(881)(772)
Gross debt/EBITDA3.1x2.9x
Net debt/EBITDA0.9x0.8x
Net Debt to EBITDA ratio of
1.5x to 2.5x
Gearing30.1%27.7%
Return on invested capital (ROIC)
2
NC9.7%Target ROIC above pre-tax WACC
Total liquidity
1
1,7921,529
Target liquidity range of
$1.2 billion to $1.5 billion
Moody's ratingBaa1 (investment grade)Baa1 (investment grade)Investment grade
Shareholder distributions declared1.25cps interim unimputed
ordinarydividend
2.0 cps interim and 1.5 cps final
unimputed ordinary dividends
Ordinary dividend payout ratio of
40% to 70% of underlying net profit
after taxation (NPAT)
3
1
In $ millions.
2
Return on invested capital not calculated (NC) at the interim results.
3
NPAT is calculated on a rolling twelve-month basis as further explained on slides 9 and 15.
Key capital management metrics
AIR NEW ZEALAND 2025 INTERIM RESULTS
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24
AIR NEW ZEALAND 2025 INTERIM RESULTS
24
Debt maturity profile as at 31 Dec 2024
($ millions)
•Gross Debt of $3.0 billion comprising:
–~$1.4 billion secured aircraft debt and finance leases
1
–~$0.9 billion operating leases
1
–~$0.7 billion unsecured bonds and notes
•Cash of ~$1.5 billion, restricted deposits of $0.5 billion and net open
derivatives of $42 million
•Net Debt of ~$0.9 billion
•Undrawn $250 million Revolving Credit Facility, expiring May 2027
•Weighted average debt and finance lease maturity of ~3.5 years
2
Capital structure as at 31 Dec 2024
Unencumbered aircraft portfolio
•50 unencumbered aircraft as at Dec 2024 including 7 A320/A321neos
•Market value as at Jun 2024 of ~$2.0 billion
3
•In addition, equity of ~$1.9 billion
3
in existing aircraft within debt
facilities
143
252
254
133
97
75
171
150
48
105
327
270
H2-25FY26FY27FY28FY29FY30FY31FY32
27
FY33FY34
Secured Debt and Finance Leases
NZ Retail Bond
Australian Medium Term Notes
1
Finance leases are lease liabilities with purchase options. Operating leases are lease liabilities without purchase options.
2
Weighted average life of secured aircraft debt, finance leases and unsecured debt. Excludes operating leases.
3
Aircraft and spare engines. Aircraft valuations based on Aircraft Value Analysis Company Limited (AVAC) as at 30 June 2024. Spare engines are included at book value as at 30 June 2024. USD values are converted to NZD at 31 December 2024
balance sheet rate of 0.5630. Foreign currency denominated debt outstanding as at 31 December 2024 also converted to NZD at balance sheet rates (JPY: 88.90, EUR: 0.5400). Aircraft valuations are subject to market conditions, aircraft condition,
FX rates, technology advancement and other factors.
Debt structure and maturity profile
AIR NEW ZEALAND 2025 INTERIM RESULTS
25
25
AIR NEW ZEALAND 2025 INTERIM RESULTS
25
$94 million in compensation and $3 million gain
on sale recognised in the 1H 2025 result
Dec 2024
$M
Dec 2023
$M
Other revenue
83-
Fuel
2-
Maintenance
1-
Depreciation and amortisation
8-
Total compensation received from manufacturers
94-
Compensation recognised in Statement of Financial Performance
Gain on sale and leaseback of four Airbus A320 aircraft recognised in Statement of Financial Performance
Dec 2024
$M
Dec 2023
$M
Other expenses
3-
~$30 million
of which pertains to
other periods
AIR NEW ZEALAND 2025 INTERIM RESULTS
26
26
AIR NEW ZEALAND 2025 INTERIM RESULTS
26
Dec 2024
$M
Dec 2023
$M
Movement
%
Operating revenue
3,4033,474(2%)
Earnings before taxation
155185(16%)
Net profit after taxation
106129(18%)
Operating cash flow
4244113%
Cash position
1
1,5421,27921%
Ordinary dividends declared
1.25 cps2.0 cps(37%)
1
Comparatives at 30 June rather than 31 December.
Financial overview
AIR NEW ZEALAND 2025 INTERIM RESULTS
27
27
AIR NEW ZEALAND 2025 INTERIM RESULTS
27
Dec 2024Dec 2023Movement
1
%
Passengers carried (‘000s)
8,0868,352(3%)
Available seat kilometres (ASKs, millions)
20,45321,405(4%)
Revenue passenger kilometres (RPKs, millions)
17,03217,467(2%)
Load factor
83.3%81.6%1.7 pts
Passenger revenue per ASKs as reported (RASK,
cents)
14.214.3(1%)
Passenger revenue per ASKs, excluding FX
(RASK, cents)
14.214.3(1%)
Passenger revenue per ASKs, excluding FX and
unused credit breakage (RASK, cents)
2
14.214.11%
1
Calculation based on numbers before rounding.
2
This is RASK excluding $10 million in unused customer credit breakage which has been recognised within passenger revenue in 1H 2025 and $45 million in 1H 2024.
Group performance metrics
AIR NEW ZEALAND 2025 INTERIM RESULTS
28
28
AIR NEW ZEALAND 2025 INTERIM RESULTS
28
Dec 2024Dec 2023Movement
1
%
Passengers carried (‘000s)
5,1745,460(5%)
Available seat kilometres (ASKs, millions)
3,2353,353(3%)
Revenue passenger kilometres
(RPKs, millions)
2,6952,826(5%)
Load factor
83.3%84.3%(1.0) pts
Passenger revenue per ASKs as reported (RASK,
cents)
29.930.1(1%)
Passenger revenue per ASKs, excluding FX
(RASK, cents)
29.930.1(1%)
Passenger revenue per ASKs, excluding FX and
unused credit breakage (RASK, cents)
2
29.829.8-
Domestic
1
Calculation based on numbers before rounding.
2
This is RASK excluding ~$3 million in unused customer credit breakage which has been recognised within passenger revenue in 1H 2025 and $9 million in 1H 2024.
AIR NEW ZEALAND 2025 INTERIM RESULTS
29
29
AIR NEW ZEALAND 2025 INTERIM RESULTS
29
Dec 2024Dec 2023Movement
1
%
Passengers carried (‘000s)
1,9411,9022%
Available seat kilometres (ASKs, millions)
5,8645,898(1%)
Revenue passenger kilometres
(RPKs, millions)
5,0704,9043%
Load factor
86.5%83.2%3.3 pts
Passenger revenue per ASKs as reported (RASK,
cents)
13.213.6(2%)
Passenger revenue per ASKs, excluding FX (RASK,
cents)
13.213.6(3%)
Passenger revenue per ASKs, excluding FX and
unused credit breakage (RASK, cents)
2
13.213.4(2%)
Tasman and Pacific Islands
1
Calculation based on numbers before rounding.
2
This is RASK excluding ~$3 million in unused customer credit breakage which has been recognised within passenger revenue in 1H 2025 and $10 million in 1H 2024.
AIR NEW ZEALAND 2025 INTERIM RESULTS
30
30
AIR NEW ZEALAND 2025 INTERIM RESULTS
30
Dec 2024Dec 2023Movement
1
%
Passengers carried (‘000s)
971990(2%)
Available seat kilometres (ASKs, millions)
11,35412,154(7%)
Revenue passenger kilometres
(RPKs, millions)
9,2679,737(5%)
Load factor
81.6%80.1%1.5 pts
Passenger revenue per ASKs as reported (RASK,
cents)
10.210.3-
Passenger revenue per ASKs, excluding FX (RASK,
cents)
10.310.3-
Passenger revenue per ASKs, excluding FX and
unused credit breakage (RASK, cents)
2
10.210.11%
International long-haul
1
Calculation based on numbers before rounding.
2
This is RASK excluding ~$3 million in unused customer credit breakage which has been recognised within passenger revenue in 1H 2025 and $26 million in 1H 2024.
AIR NEW ZEALAND 2025 INTERIM RESULTS
31
31
AIR NEW ZEALAND 2025 INTERIM RESULTS
31
Aircraft delivery schedule (as at 31 December 2024)
1
Number
in
existing
fleet
Number
on
order
Expected delivery dates
(financial year)
20252026202720282029
Owned Fleet on Order
Boeing 787128-231
2
Airbus A320neo / A321neo132--2-
-
ATR 72-6003011--
-
-
Operating Leased
Aircraft
Airbus A320neo / A321neo522---
-
1
Delivery table excludes the BETA ALIA CTOL, our first electric aircraft which will enter the fleet as a cargo-only commercial demonstrator from FY2026. It should be noted that the table above is based on our assumed delivery
schedule. This differs to the contractual delivery dates.
Aircraft delivery schedule
AIR NEW ZEALAND 2025 INTERIM RESULTS
32
32
AIR NEW ZEALAND 2025 INTERIM RESULTS
32
1
For 2021 and 2022, the chart excludes the Boeing 777-200ER fleet. It does not include the BETA ALIA CTOL, our first electric aircraft which will enter the fleet as a cargo-only commercial demonstrator from FY2026. It also does not
include three short-term leased 777-300ER aircraft.
2
Includes the three short-term leased 777-300ER aircraft.
Fleet type
202520262027
Boeing 777-300ER
2
10109
Boeing 787
141619
Airbus A320
171713
Airbus A320/A321neo
202022
ATR72-600
313131
Bombardier Q300
232323
Total Fleet
115117117
Fleet age update
6.7
7.3
7.9
8.7
9.4
10.1
10.2
2021202220232024202520262027
Aircraft fleet age in years
(seat weighted)
1
HistoricalForecast
AIR NEW ZEALAND 2025 INTERIM RESULTS
33
33
AIR NEW ZEALAND 2025 INTERIM RESULTS
33
Available Seat Kilometres (ASKs)Number of seats operated multiplied by the distance flown (capacity)
Cost/ASK (CASK)Operating expenses divided by the total ASK for the period
Earnings before interest, tax, depreciation
and amortisation (EBITDA)
Operating earnings before depreciation and amortisation, finance costs and taxation
Gross DebtInterest-bearing liabilities and lease liabilities
Net Debt
Interest-bearing liabilities and lease liabilities less bank and short-term deposits, net open derivatives held in relation to
interest-bearing liabilities and lease liabilities, and interest-bearing assets
Cash, restricted deposits and net open
derivatives
Bank and short-term deposits, interest-bearing assets and net open derivatives held in relation to interest-bearing
liabilities and lease liabilities
Liquidity
Cash and cash equivalents (which excludes restricted deposits) plus the outstanding amount of any revolving credit
facility available to be drawn
Passenger Load FactorRPKs as a percentage of ASKs
Passenger Revenue/ASK (RASK)Passenger revenue for the period divided by the total ASKs on passenger flights for the period
Revenue Passenger Kilometres (RPKs)Number of revenue passengers carried multiplied by the distance flown (demand)
The following non-GAAP measures are not audited: CASK, Net Debt, Gross Debt, EBITDA and RASK. Amounts used within the calculations are derived from the condensed Group interim financial statements where possible. The interim financial
statements are subject to review by the Group’s external auditors. The non-GAAP measures are used by management and the Board of Directors to assess the underlying financial performance of the Group in order to make decisions around the
allocation of resources.
Glossary of key terms
AIR NEW ZEALAND 2025 INTERIM RESULTS
34
34
AIR NEW ZEALAND 2025 INTERIM RESULTS
34
Resources
Contact information
Email: investor@airnz.co.nz
Share registrar: enquiries.nz@cm.mpms.mufg.com
Investor website:
www.airnewzealand.co.nz/investor-centre
Monthly traffic updates:
www.airnewzealand.co.nz/monthly-investor-updates
Corporate governance:
www.airnewzealand.co.nz/corporate-governance
Sustainability: https://www.airnewzealand.co.nz/sustainability
Find information on Air New Zealand
AIR NEW ZEALAND 2025 INTERIM RESULTS
35
---
Interim
Financial Report
/ 2025
N e w Yo r k
Chicago*
Vancouver
San Francisco
Los Angeles
Houston
Honolulu
Ta h i t i
Rarotonga
Samoa
Niue
Tonga
Fiji
New Caledonia*
Cairns
Sunshine Coast
Brisbane
Gold Coast
Sydney
Adelaide
Melbourne
Hobart
Perth
Queenstown
Christchurch
Wellington
Auckland
Denpasar
Singapore
Hong Kong
Ta i p e i
Shanghai
Seoul*
To k y o
INTERIM FINANCIAL REPORT 2025INTERIM FINANCIAL REPORT 2025
02 | AIR NEW ZEALAND GROUPAIR NEW ZEALAND GROUP | 03
Where we fly
CONTENTS
02 Where we fly
04 Letter from the Chair and Chief Executive Officer
10 Financial Commentary
13 Change in Earnings
14 Condensed Consolidated Interim Financial Statements
22 Independent Auditor's Review Report
23 Shareholder Enquiries
Kerikeri
Whangārei
Tauranga
Hamilton
Rotorua
TaupōGisborne
Hawke’s Bay
Palmerston North
New Plymouth
Nelson
Blenheim
Hokitika
Timaru
Dunedin
Invercargill
Queenstown
Christchurch
Wellington
Auckland
*Route is temporarily suspended.
Kia ora koutou
LETTER FROM THE CHAIR AND CHIEF EXECUTIVE OFFICER
Our performance for the
first half of the 2025
financial year is a testament
to the resilience and skill
of our 11,600-strong
Air New Zealand whānau.
Despite navigating what has now been 12 months of some
of the toughest conditions we have ever experienced,
Air New Zealand is proud to have delivered earnings
before taxation of $155 million, at the upper end of
guidance, and net profit after taxation of $106 million.
Dame Therese Walsh
Chair
Greg Foran
Chief Executive Officer
INTERIM FINANCIAL REPORT 2025INTERIM FINANCIAL REPORT 2025
04 | AIR NEW ZEALAND GROUPAIR NEW ZEALAND GROUP | 05
Our strong balance sheet
and liquidity position allow
us to not only manage
the short-term challenges
we face successfully,
but also to invest in the
future with confidence
and return capital to our
shareholders.
Reflecting the result for the period and our balance sheet
stability, the Board has declared an unimputed interim
ordinary dividend of 1.25 cents per share and approved
a share buy-back of up to $100 million*. This decision
underscores our commitment to delivering value to our
shareholders, while ensuring we remain well-positioned for
the long-term.
In a normal year the result we have announced today might
not seem that remarkable. But given the challenges we have
faced – rising costs, a softer domestic economy with reduced
corporate and government spending, and unprecedented
levels of grounded aircraft due to additional engine
maintenance requirements – it is a result that reflects the
hard mahi, determination, and agility of our team.
*This includes an on-market buy-back component through the NZX and ASX and an off-market buy-back
component under which Air New Zealand will, following any on-market acquisitions, acquire a corresponding
number of shares held by the Crown, in order to maintain the Crown's shareholding.
To perhaps put the biggest
of these challenges into
perspective, over $1 billion
worth of our newest and
most efficient aircraft
have been grounded
at times across the six
month period.
LETTER FROM THE CHAIR AND CHIEF EXECUTIVE OFFICER (CONTINUED)
The impact of this on our operations,
our financial performance, our
people and our customers cannot be
understated. We estimate earnings
before taxation of $155 million
for the period would have been
around $40 million higher, net of
compensation, had we been able
to operate our aircraft and network
schedule as intended.
But we knew this would be the
case and went into the year with
our eyes wide open, determined
to control what we could, continue
putting effective mitigations in place
and maintain a relentless focus on
delivering for our customers.
And while disruption remains part
of our daily rhythm for now, we
are optimistic about the future.
As we outlined at our Investor Day
in November, we are undertaking
exciting work across the business
to strengthen and develop our
foundations even further.
Looking ahead to the next 12 months,
more than half of our Boeing 787
Dreamliner fleet will be retrofitted with
our latest cabin products, including
the new Business Premier Luxe™
seats in our Business Premier™ cabin.
A new inflight entertainment system
and bigger screens will be rolled out
across all cabins and a Sky Pantry™,
where customers can get a snack
or drink at their leisure, will be
added to our Premium Economy and
Economy cabins.
We will also officially launch our
trial of digital bag tags, enabling
customers to track baggage on a
real-time basis throughout their travel
journey. Starting in March, domestic
Wi-Fi will be rolled out on select
aircraft, including, in a world first,
on an ATR aircraft. Free internet on
domestic flights marks a significant
step in transforming the way we
connect and travel here in Aotearoa
New Zealand and we are excited to
have this innovation on-board.
Our first battery-powered,
all-electric demonstrator
aircraft will also join
the fleet in the 2025
calendar year.
This delivery represents an important
step in our journey towards
decarbonisation. The demonstrator
will provide us with invaluable insights
into the broader transformation
needed in the aviation ecosystem
to support adoption of these
technologies on a larger scale. Work is
also progressing on a new near-term
carbon emissions reduction target,
that better reflects the challenges
we face with respect to aircraft and
alternative jet fuel availability.
The Mangōpare Pilot Cadetship has
had a tremendous start, receiving
over 2,000 applications for its
inaugural intake. 30 cadets were
selected and began their training in
Arizona last September, a critical step
to ensure we maintain a pipeline of
talent to support future growth.
And as aircraft availability issues
start to ease and the first of our new
Boeing 787 Dreamliners arrive in early
calendar year 2026, we are actively
evaluating network opportunities and
potential new routes we may look to
serve in the medium to longer term.
These initiatives are just the
beginning of what promises to be an
exciting year ahead. In times like this,
it might be easier to pull back and
delay investment, but that’s not who
we are. Our focus remains firmly on
the future – ensuring that we continue
to connect New Zealanders to each
other and to the world, while driving
innovation and creating value for our
customers and shareholders alike.
INTERIM FINANCIAL REPORT 2025
06 | AIR NEW ZEALAND GROUP
Mania
Flight Attendant
INTERIM FINANCIAL REPORT 2025
AIR NEW ZEALAND GROUP | 07
BETA’s ALIA CTOL
aircraft which has been selected
as our first next-generation aircraft
Financial Results
Turning to the detail of the results,
Air New Zealand has delivered
earnings before taxation of $155 million
for the six months to 31 December
2024. This was an expected decline
on the prior period.
Passenger revenue decreased
five percent to $2.9 billion, largely
due to capacity constraints arising
from additional engine maintenance
requirements, as well as lower domestic
demand particularly in corporate and
government segments. Also included
within passenger revenue is $10 million
of credit breakage for unused travel
credits that are considered highly
unlikely to be redeemed.
Operating costs including fuel
decreased two percent, driven
primarily by reduced capacity and
lower fuel cost for the period.
US dollar (USD) fuel prices declined
16 percent over the period from an
average of USD 109 per barrel to an
average of USD 91 per barrel,
driving a $133 million decrease in
total fuel costs. Overall capacity for
the period declined four percent
due to fleet constraints related
to the ongoing additional engine
maintenance requirements impacting
Pratt & Whitney and Rolls-Royce
customers globally.
Cost inflation continues to significantly
impact financial performance,
with approximately $100 million of
additional non-fuel operating cost
headwinds for the half. This represents
an uplift of five percent compared to
the same period last year, and brings
the cumulative impact of inflation
across the past five years to around
25 to 30 percent. The reduction
in capacity for the period has also
hampered productivity efforts as
the airline carries extra costs and
inefficiencies as it manages ongoing
disruptions in the supply chain.
LETTER FROM THE CHAIR AND CHIEF EXECUTIVE OFFICER
(CONTINUED)
Capital Management
and Dividends
Management continues to make
solid progress to move the airline
closer to the targets set out in its
Capital Management Framework.
This includes the resumption of
ordinary dividends, voluntary early
repayment of debt and an increase
in unencumbered aircraft.
Liquidity as at 31 December 2024
was $1.8 billion and net debt to
EBITDA was 0.9 times. The airline
continues to maintain its investment
grade credit of Baa1, reaffirming
Air New Zealand’s position as one
of the highest credit-rated airlines
in the world. Maintaining our
investment grade rating provides us
with continued access to capital at
competitive rates, giving us flexibility
and resiliency.
On the basis of our ongoing balance
sheet strength and the result, the
Board has declared an unimputed
interim ordinary dividend of 1.25 cents
per share, which equates to a payout
ratio of 69 percent of the prior 12
month's underlying net profit after
taxation. This aligns with the airline's
policy to pay ordinary dividends equal
to between 40 percent to 70 percent
of underlying net profit after taxation,
subject to Board discretion.
The Board was also pleased to
announce that up to $100 million
will be returned to shareholders
through a share buy-back.
Air New Zealand continues to
demonstrate its financial stability
with a strong balance sheet,
excess liquidity and performance
over and above our Capital
Management Framework targets.
Outlook
The airline notes that the 2025
financial year will be the first full
12-month period impacted by global
additional engine maintenance
requirements on the Pratt & Whitney
and Rolls-Royce engines that power
its Airbus neo and Boeing 787
Dreamliner fleets.
For the second half of the financial
year, Air New Zealand’s best estimate
currently is that it will have up to 11
jet aircraft grounded at times as a
result of these requirements, however
the airline notes a large degree of
uncertainty exists regarding engine
maintenance timeframes.
In light of these aircraft groundings,
the associated diseconomies of scale
and inefficiencies, and potential
compensation, the airline currently
expects performance for the second
half of the 2025 financial year to be
significantly lower than the first half.
Given the degree of uncertainty
surrounding the number of grounded
aircraft across the second half and
any associated compensation, the
airline is not in a position to provide
guidance at this time.
While the challenges we face will
remain a while longer, our strong
balance sheet, clear strategic focus,
and the dedication of our team give
us confidence in the path ahead.
The momentum we’ve built over the
past year, through decisive actions
to create value for our customers
and shareholders, has laid a strong
foundation for the future.
Both the Board and management
are committed to continue delivering
stronger returns while staying true
to our culture and our promise of a
world-class travel experience.
Thank you for your continued support
of Air New Zealand.
Ngā mihi nui,
Dame Therese Walsh
Chair
Greg Foran
Chief Executive Officer
Air New Zealand
INTERIM FINANCIAL REPORT 2025
AIR NEW ZEALAND GROUP | 09
INTERIM FINANCIAL REPORT 2025
08 | AIR NEW ZEALAND GROUP
L to R: Geordan & Traci
Standards and Quality Assurance
Lead & Delivery Enablement
Specialist, Cargo
AIR NEW ZEALAND 2025 INTERIM RESULTS
1
1
AIR NEW ZEALAND 2025 INTERIM RESULTS
1
Invest in core operations
Maintain financial resilience and flexibility
DistributionsGrowth capex
Underpinned by our commitment to maintain investment grade credit rating metrics
•Target liquidity range of $1.2 billion to $1.5 billion
•Net Debt to EBITDA ratio of 1.5x to 2.5x
•Fleet and infrastructure investments above WACC through the cycle
• Investment to support the airline’s decarbonisation ambitions
•Ordinary dividend pay-out ratio of
40% to 70% of underlying net
profit after tax (NPAT)
1
•Return excess capital via special
dividends or share buybacks
•Disciplined investment in value
accretive capex
•Target ROIC above pre-tax
WACC
Unimputed interim ordinary dividend
1.25cps
69%pay-outratio
Returnofexcesscapital
Announcedsharebuy-back
of up to$100million
1H 2025 performance vs target
1
The payout ratio for each of the interim and final dividends is calculated based on the rolling 12-month NPAT, which is divided by two, to reflect the six-monthly period.
Progressing towards our capital management framework targets
Liquidity
$1.8 billion
Net Debt to EBITDA
0.9x
L to R: Keita, Bikku & Steve
Aircraft Maintenance Engineer, Trainee ANZTO
& Team Leader, Aero Support AKL, Operations
Sophie
Flight Attendant
INTERIM FINANCIAL REPORT 2025
10 | AIR NEW ZEALAND GROUP
FINANCIAL COMMENTARY
Air New Zealand has reported
earnings before taxation of $155
million for the first six months of
the 2025 financial year, compared
to $185 million for the equivalent
period last year. Net profit after
taxation was $106 million.
Considerable levels of grounded
aircraft due to global accelerated
maintenance requirements on
engines that power the airline’s
Boeing 787 Dreamliner and Airbus
A320/321neo fleets significantly
impacted the result for the period.
Ongoing weakness in the economic
backdrop in New Zealand also
affected the result, with lower
domestic demand, particularly in the
corporate and government segments.
Revenue Performance
Operating revenue for the period
was $3.4 billion, a decrease of 2.0
percent. Excluding the impact of
foreign exchange, operating revenue
decreased 1.9 percent.
Passenger revenue declined 5.0 percent
to $2.9 billion largely due to capacity
constraints from aircraft groundings,
and softer domestic demand. Excluding
the impact of foreign exchange and
travel credit breakage, passenger
revenue decreased by 3.9 percent.
Total capacity (Available Seat
Kilometres, ASK) decreased 4.4
percent, reflecting fleet constraints
arising from the global accelerated
engine maintenance requirements.
Demand (Revenue Passenger
Kilometres, RPK) increased by more
than capacity, resulting in increased
load factors of 83.3 percent, up 1.7
percentage points on the prior period.
Revenue per Available Seat Kilometre
(RASK) excluding foreign exchange
and travel credit breakage increased
slightly, by 0.7 percent.
Capacity across the international
long-haul network decreased 6.6
percent, as a result of engine
constraints on the airline’s Dreamliner
fleet, which was only partly offset
by the deployment of three leased
widebody aircraft. Demand on
international long-haul routes relative
to capacity growth saw load factors
increase 1.5 percentage points to 81.6
percent. International long-haul RASK
excluding foreign exchange and travel
credit increased by 1.0 percent.
International short-haul capacity
decreased by 0.6 percent, and load
factors increased 3.3 percentage points
to 86.5 percent due to a combination
of higher passenger volumes and
reduced narrowbody flying associated
with additional engine maintenance
requirements. International short-haul
RASK decreased 1.5 percent excluding
foreign exchange and travel credit
breakage due to lower average fares.
Domestic capacity decreased 3.5
percent, with up to five narrowbody
aircraft removed from service for parts
of the period due to the global Pratt
& Whitney PW1100 accelerated engine
maintenance requirements. Despite
this, passenger volumes decreased
by more than the capacity reduction
due, in part, to ongoing softness in
the New Zealand economy which
impacted business travel. Load factors
decreased 1.0 percentage point to 83.3
percent, while RASK excluding foreign
exchange and travel credit breakage
was consistent with the prior period.
Cargo revenue was $257 million, an
increase of 5.8 percent. This was
largely driven by higher load factors
particularly on North American and
Asia routes, partly offset by capacity
and yield declines due to stronger
market competition.
Contract services and other revenue
was $241 million, an increase of 39
percent, due to compensation received
from engine manufacturers related to
accelerated maintenance requirements,
partly offset by reduced third-party
maintenance revenue resulting
primarily from the permanent closure
of the Gas Turbines business which
occurred in the prior period. Foreign
exchange had a nominal impact.
Expenses
Operating expenditure decreased
1.7 percent to $2.9 billion for the
period as a result of lower overall
capacity from ongoing engine
maintenance disruptions, as well
as a substantial decrease in jet
fuel prices.
Reported costs per ASK (CASK)
deteriorated 2.9 percent, as lower
fuel price and favourable foreign
exchange movements were more
than offset by ongoing inflationary
pressure across the cost base and
inefficiencies associated with fleet
constraints. For the six months to
31 December 2024, broad-based
inflation led to an increase of
approximately $100 million in non-
fuel operating costs compared to
the prior period. Underlying CASK,
which excludes the impact of fuel
price, foreign exchange and third-
party maintenance, deteriorated by
6.7 percent.
Labour costs were $824 million,
increasing by 3 percent compared
to the same period last year. Wage
inflation of 4.7 percent contributed
to higher labour costs but was
partly offset by less flying in the
period. Full-Time Equivalent labour
(FTE) decreased 0.5 percent to
approximately 11,600.
Fuel costs were $746 million,
decreasing 15 percent on the prior
period largely due to a decline in
Singapore Jet fuel price, as well as
the reduced flying over the period.
A 16 percent decrease in the
underlying jet fuel prices from
USD 109 per barrel to USD 91 per
barrel, and, to a lesser extent, a
decrease in the price of domestic
carbon offsets was partially offset
by unfavourable hedging losses.
Combined, these factors contributed
$108 million of lower costs relative
to the prior period. A stronger New
Zealand dollar relative to the prior
period also contributed $5 million to
the decrease in fuel costs.
Aircraft operations, passenger
services and maintenance costs
increased $70 million, or 8 percent
driven primarily by increased landing
charges across a number of domestic
airports, increased engineering and
maintenance costs and broader
inflation pressure both in New
Zealand and in offshore locations to
which Air New Zealand operates.
This was partly offset by reduced
costs from lower overall capacity.
Sales, marketing and other expenses
decreased $16 million, or 4 percent
due to lower commissions and
other underlying sales activity due
to reduced overall capacity from
ongoing fleet disruptions, offset partly
by increased market development and
related activities.
Ownership costs were $388 million,
an increase of $5 million or 1.3 percent
from the prior period. Decreased
interest income due to a reduction in
average cash holdings is reflected in
increased net interest costs.
The impact of foreign exchange
rate changes on the revenue and
cost base resulted in a favourable
foreign exchange movement of $6
million. After considering a $5 million
unfavourable movement in hedging,
overall foreign exchange had a net
$1 million positive impact on the
Group result for the period.
$155m
Earnings before
taxation
$106m
Net profit
after taxation
$424m
Operating cash flow
1.25c
Unimputed interim
ordinary dividend
$1.5b
Cash on hand
$3.4b
Operating revenue
$2.9b
Passenger revenue
$100m
Share buy-back
Up to
INTERIM FINANCIAL REPORT 2025
AIR NEW ZEALAND GROUP | 11
INTERIM FINANCIAL REPORT 2025
AIR NEW ZEALAND GROUP | 13
INTERIM FINANCIAL REPORT 2025
12 | AIR NEW ZEALAND GROUP
FINANCIAL COMMENTARY (CONTINUED)
Share of Earnings
of Associates
Share of earnings of associates were
$15 million, a $5 million decrease on
the prior period due to unfavourable
foreign exchange impacts.
Cash and
Financial Position
Cash on hand at 31 December 2024
was $1.5 billion, an increase of $263
million on 30 June 2024. This increase
reflects the higher operating cash
flows, proceeds from the sale and
leaseback of four A320 aircraft and
the return of a restricted deposit
placed as part of a commercial
arrangement to provide security
over the airline’s New Zealand-based
credit card obligations. The increase
was partly offset by the payment of
a 2024 final dividend, acquisition of
fixed assets and scheduled debt and
lease payments in the period.
At 31 December 2024, liquidity was
$1.8 billion, reflecting cash balances
of $1.5 billion as well as a revolving
credit facility of $250 million, which
remains undrawn.
Cashflow and Debt
Operating cash flows were $424 million,
reflecting positive cash earnings.
Net debt to EBITDA increased to
0.9x, which remains favourable to
the airline’s target leverage range of
1.5x to 2.5x. The Board will continue
to review appropriate tools to
prudently transition this metric into
the target range.
Distributions
On the basis of the airline’s balance
sheet strength and the result
announced for the period, the Board
has declared an unimputed interim
ordinary dividend of 1.25 cents per
share. The dividend will be paid on
19 March 2025, to shareholders on
record as at 7 March 2025.
In addition to this, the airline also
announced the commencement of a
share buy-back of up to $100 million.
Dividend
record date
7 March 2025
Ex-dividend date
6 March 2025
Dividend
payment date
19 March 2025
CHANGE IN EARNINGS
The key changes in earnings, after isolating the impact of foreign exchange movements, are set out in the table below*:
December 2023
earnings before
taxation
Passenger capacity
($119m)
- Capacity decreased by 4 percent due to reductions in aircraft availability arising from
engine issues affecting the Airbus narrowbody fleets and Boeing 787 fleet.
- Domestic capacity decreased 3 percent due to the impact of the global Pratt & Whitney
engine issues on the A321neo fleet.
- International short-haul capacity decreased 0.6 percent due to a reduction in Airbus
narrowbody flying partially offset by additional deployment of leased Boeing 777 fleet.
- International long-haul capacity decreased 7 percent due to a reduction in aircraft
availability as a result of Trent 1000 engine issues.
Passenger RASK
$2m
- Overall Group Revenue per Available Seat Kilometre (RASK) increased by 0.7 percent
excluding FX and travel credit breakage. Loads increased by 1.7 percentage points to
83.3 percent.
- Domestic RASK excluding FX and travel credit breakage was consistent with the prior
period with load factor decreasing 1.0 percentage points to 83.3 percent. RASK was
impacted by strong demand for regional travel and events offset by a reduction in capacity
flown and lower demand from corporate and government segments.
- International short-haul RASK decreased by 1.5 percent excluding FX and travel credit
breakage with load factor increasing 3.3 percentage points to 86.5 percent.
- International long-haul RASK increased by 1.0 percent excluding FX and travel credit
breakage with load factors increasing 1.5 percentage points to 81.6 percent. The current
period was impacted by Boeing 787 availability issues with passenger demand reducing at
a lesser rate than the reduction in aircraft capacity.
Unused travel credits
($35m)
- A breakage allowance was recognised for passenger unused travel credits for which it is
considered the likelihood of those credits being utilised is remote.
Cargo revenue
$17m
- Load factor improvements particularly on North American and Asian routes partially offset
by a reduction in yield due to an increase in market capacity.
Contract services and
other revenue
$68m
- The increase reflects compensation income received from manufacturers for the impact
of engine shortages on the business recognised in the current period (of $83 million) and
higher ancillary income. This was partially offset by reduced third-party maintenance
work primarily due to the closure of the Gas Turbines operation in September 2023 and
lower customer heavy maintenance activity.
Labour
($23m)
- Higher labour costs due to wage inflation and higher activity from increased engineering
maintenance requirements offset by a reduction in operating activity.
Fuel
$128m
- Consumption decreased by 2 percent ($20 million) compared to reduction in capacity of
4 percent. The average fuel price, net of hedging and carbon costs, decreased 12 percent
compared to the prior year resulting in a decrease in costs of $108 million. MOPS price
decreased by 16 percent.
Aircraft operations,
passenger services and
maintenance
($ 74 m)
- Higher costs related to landing price increases, price inflation, higher utilisation of
Boeing 777 aircraft and additional costs associated with leased engines.
Sales and marketing and
other expenses
$14m
- Lower commissions and other sales costs due to a reduction in capacity offset by higher
market development spend.
Ownership costs
($4m)
- Higher net financing costs driven by lower average cash reserves were offset by a
reduction in depreciation due to favourable foreign exchange movements on residual
values partially counteracted by new leased aircraft and engine maintenance.
Net impact of foreign
exchange movements
$1m
- Favourable movements on operating revenue and costs partially offset by lower hedging
gains due to market movements.
Share of earnings of
associates
($5m)
- Decrease in earnings from the Christchurch Engine Centre due to unfavourable foreign
exchange movements.
December 2024
earnings before
taxation
$185m
*The numbers referred to in the Financial Commentary on the previous page
have not isolated the impact of foreign exchange.
$155m
Donna
Flight Attendant
INTERIM FINANCIAL REPORT 2025INTERIM FINANCIAL REPORT 2025
14 | AIR NEW ZEALAND GROUPAIR NEW ZEALAND GROUP | 15
NOTES
2024
UNAUDITED
$M
2023
UNAUDITED
$M
Operating revenue
Passenger revenue
Cargo
Contract services
Other revenue2.7
2,905
257
33
208
3,057
243
58
116
Operating expenditure
Labour
Fuel
Maintenance
Aircraft operations
Passenger services
Sales and marketing
Foreign exchange gains
Other expenses
3
2.7
2.7
2.6
3,403
(824)
( 746)
(274)
(446)
(214)
(157)
-
(214)
3 ,474
(801)
(879)
(255)
(403)
(206)
(160)
5
(227)
(2,875)(2,926)
Operating earnings (excluding items below)
Depreciation and amortisation2.7
528
(364)
548
(369)
Earnings before net finance costs, associates and taxation
Finance income
Finance costs
Share of earnings of associates (net of taxation)
2.1
164
57
(81)
15
179
83
(97)
20
Earnings before taxation
Taxation expense
155
(49)
185
(56)
Net profit attributable to shareholders of parent company 106 129
Per share information:
Basic and diluted earnings per share (cents)
Interim dividend declared per share (cents)
3.1
1.25
3.8
2.0
These condensed consolidated interim financial statements have not been audited. They have been the subject of a review by the auditor pursuant to
NZ SRE 2410 (Revised) Review of Financial Statements Performed by the Independent Auditor of the Entity, issued by the External Reporting Board.
CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE
For the six months ended 31 December
These condensed consolidated interim financial statements have not been audited. They have been the subject of a review by the auditor pursuant to
NZ SRE 2410 (Revised), issued by the External Reporting Board. The accompanying notes form part of these financial statements.
2024
UNAUDITED
$M
2023
UNAUDITED
$M
Net profit for the period
Other comprehensive (loss)/income:
Items that will not be reclassified to profit or loss:
Actuarial gains/(losses) on defined benefit plans
106
-
129
(2)
Total items that will not be reclassified to profit or loss-(2)
Items that may be reclassified subsequently to profit or loss:
Changes in fair value of cash flow hedges
Transfers to net profit from cash flow hedge reserve
Net translation gain/(loss) on investment in foreign operations
Changes in costs of hedging reserve
Taxation on above reserve movements
14
(29)
3
(17)
13
28
(20)
(1)
3
(4)
Total items that may be reclassified subsequently to profit or loss(16)6
Total other comprehensive (loss)/income for the period, net of taxation(16)4
Total comprehensive income for the period, attributable to shareholders
of the parent company90133
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 December
INTERIM FINANCIAL REPORT 2025INTERIM FINANCIAL REPORT 2025
16 | AIR NEW ZEALAND GROUPAIR NEW ZEALAND GROUP | 17
UNAUDITED
NOTES
SHARE
CAPITAL
$M
HEDGE
RESERVES
$M
FOREIGN
CURRENCY
TRANSLATION
RESERVE
$M
GENERAL
RESERVES
$M
TOTAL
EQUITY
$M
Balance as at 1 July 2024 3,379 (5) (9) (1,355) 2,010
Net profit for the period
Other comprehensive loss for the period
-
-
-
(23)
-
7
106
-
106
(16)
Total comprehensive income for the period- (23)710690
Transactions with owners:
Equity-settled share-based payments
(net of taxation)
Equity settlements of staff share
award obligations
Dividends on Ordinary Shares
2.4
6
3
(2)
-
-
-
-
-
-
-
-
-
(51)
3
(2)
(51)
Total transactions with owners1 - - (51) (50)
Balance as at 31 December 20242.5 3,380 (28) (2)(1,300)2,050
UNAUDITED
NOTES
SHARE
CAPITAL
$M
HEDGE
RESERVES
$M
FOREIGN
CURRENCY
TRANSLATION
RESERVE
$M
GENERAL
RESERVES
$M
TOTAL
EQUITY
$M
Balance as at 1 July 2023 3,377 (59) (9) (1,230) 2,079
Net profit for the period
Other comprehensive income for the period
-
-
-
8
-
(2)
129
(2)
129
4
Total comprehensive income for the period- 8(2)127133
Transactions with owners:
Equity-settled share-based payments
(net of taxation)
Equity settlements of staff share
award obligations
Dividends on Ordinary Shares
2.4
6
4
(5)
-
-
-
-
-
-
-
-
-
(202)
4
(5)
(202)
Total transactions with owners (1) - - (202) (203)
Balance as at 31 December 20232.5 3,376 (51) (11)(1,305)2,009
These condensed consolidated interim financial statements have not been audited. They have been the subject of a review by the auditor pursuant to
NZ SRE 2410 (Revised), issued by the External Reporting Board. The accompanying notes form part of these financial statements.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 December
These condensed consolidated interim financial statements have not been audited. They have been the subject of a review by the auditor pursuant to
NZ SRE 2410 (Revised), issued by the External Reporting Board. The accompanying notes form part of these financial statements.
NOTES
31 DEC 2024
UNAUDITED
$M
30 JUN 2024
AUDITED
$M
Current assets
Bank and short-term deposits
Trade and other receivables
Inventories
Derivative financial assets
Intangible assets
Income taxation
Interest-bearing assets
Other assets
2.2
1,542
549
144
157
41
28
329
12
1,279
538
131
88
40
28
326
10
Total current assets 2,802 2,440
Non-current assets
Trade and other receivables
Property, plant and equipment
Right of use assets
Intangible assets
Investments in other entities
Derivative financial assets
Interest-bearing assets
Other assets
2.1
2.2
44
3,867
1,431
200
235
88
170
7
33
3,608
1,520
188
205
92
454
8
Total non-current assets 6,042 6,108
Total assets 8,844 8,548
Current liabilities
Trade and other payables
Revenue in advance
Interest-bearing liabilities
Lease liabilities
Derivative financial liabilities
Provisions
Income taxation
Other liabilities
2.3
1,022
1,736
187
337
55
12
6
276
849
1,831
157
331
76
53
7
295
Total current liabilities 3,631 3,599
Non-current liabilities
Trade and other payables
Revenue in advance
Interest-bearing liabilities
Lease liabilities
Derivative financial liabilities
Provisions
Deferred taxation
Other liabilities
2.3
5
219
1,201
1,239
79
267
117
36
-
220
1,236
1,092
101
174
81
35
Total non-current liabilities 3,163 2,939
Total liabilities 6,794 6,538
Net assets 2,050 2,010
Equity
Share capital
Reserves
2.4
2.5
3,380
(1,330)
3,379
(1,369)
Total equity 2,050 2,010
Dame Therese Walsh
Chair
For and on behalf of the Board, 20 February 2025
Alison Gerry
Director
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at
INTERIM FINANCIAL REPORT 2025INTERIM FINANCIAL REPORT 2025
18 | AIR NEW ZEALAND GROUPAIR NEW ZEALAND GROUP | 19
These condensed consolidated interim financial statements have not been audited. They have been the subject of a review by the auditor pursuant to
NZ SRE 2410 (Revised), issued by the External Reporting Board. The accompanying notes form part of these financial statements.
NOTES
2024
UNAUDITED
$M
2023
UNAUDITED
$M
Cash flows from operating activities
Receipts from customers
Receipts from suppliers
Payments to suppliers and employees
Income tax (paid)/refunded
Interest paid
Interest received
3,248
39
(2 ,844)
(1)
(80)
62
3,295
-
(2,876)
-
(93)
85
Net cash flow from operating activities 424 411
Cash flows from/(used in) investing activities
Disposal of property, plant and equipment, intangibles and assets held for sale
Distribution from associates
Acquisition of property, plant and equipment, right of use assets and intangibles
Interest-bearing assets
193
-
(297)
293
2
12
(458)
(6)
Net cash flow from/(used in) investing activities189(450)
Cash flows used in financing activities
Rollover of foreign exchange contracts*
Equity settlements of staff share award obligations
Interest-bearing liabilities payments
Lease liabilities payments
Dividends on Ordinary Shares
2.4
6
(14)
(2)
(76)
(207)
(51)
-
(5)
(102)
(202)
(209)
Net cash flow used in financing activities(350) (518)
Increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
263
1,279
(557)
2,227
Cash and cash equivalents at the end of the period 1,542 1,670
Reconciliation of net profit attributable to shareholders to net cash flows
from operating activities:
Net profit attributable to shareholders
Plus/(less) non-cash items:
Depreciation and amortisation
Net loss on disposal of property, plant and equipment, intangibles and assets
held for sale
Fair value adjustments on investments held at fair value through profit or loss
Share of earnings of associates
Movements on fuel derivatives
Foreign exchange (gains)/losses
Other non-cash items
2.1
106
364
1
-
(15)
(3)
(7)
4
129
369
4
4
(20)
6
20
4
Net working capital movements:
Assets
Revenue in advance
Liabilities
450
(35)
(96)
105
516
11
(200)
84
(26) (105)
Net cash flow from operating activities 424 411
*Relates to gains/losses on rollover of foreign exchange contracts that hedge exposures in other financial periods.
CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 31 December
1. CORPORATE INFORMATION
Reporting entity
The condensed consolidated interim financial statements (‘interim financial statements’) presented are for the parent company Air New
Zealand Limited (‘the Company’) and its subsidiaries (together referred to as ‘the Group' or ‘Air New Zealand’), and the Group's interests
in associates.
Air New Zealand is a profit-oriented entity that is domiciled in New Zealand. The Company is registered under the Companies Act 1993
and listed on the New Zealand Stock Exchange (NZX) and Australian Securities Exchange (ASX) and has bonds listed on the NZX debt
market. The Company is an FMC Reporting Entity under the Financial Markets Conduct Act 2013.
Air New Zealand’s primary business is the transportation of passengers and cargo on scheduled airline services.
Basis of preparation
The interim financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice
(‘NZ GAAP’) as its applies to the interim period. They comply with NZ IAS 34: Interim Financial Reporting and IAS 34: Interim Financial
Reporting, as appropriate for profit-oriented entities. The accounting policies adopted are consistent with those followed in the
preparation of the Group’s annual financial statements for the year ended 30 June 2024. Where necessary, certain comparative
information has been updated to conform with the current year’s presentation.
These interim financial statements have not been audited. They have been subject to review by the auditor, pursuant to NZ SRE 2410
(Revised) Review of Financial Statements Performed by the Independent Auditor of the Entity, issued by the External Reporting Board.
The interim financial statements are presented in New Zealand Dollars ($ or NZD), which is Air New Zealand’s functional currency, and
rounded to the nearest million, except where otherwise stated.
Interim financial statements do not include all of the information and disclosures required in annual financial statements and should be
read in conjunction with the annual financial statements of the Group for the year ended 30 June 2024.
These interim financial statements were approved by the Board of Directors on 20 February 2025.
Critical accounting judgements and key sources of estimation uncertainty
The estimates and assumptions applied in these interim financial statements are consistent with those applied in the annual financial
statements for the year ended 30 June 2024.
Material accounting policy information
The accounting policies and computation methods used in the preparation of the interim financial statements are consistent with those
used as at 30 June 2024 and 31 December 2023.
New accounting standards, amendments and interpretations adopted during the period
There were no new accounting standards, interpretations or amendments that had a material impact on these interim financial
statements.
New and revised NZ IFRSs, narrow scope amendments to NZ IFRSs and IFRS Interpretations not yet effective
Certain pronouncements have been issued by the IASB that are mandatory for accounting periods beginning after 31 December 2024.
Management is still evaluating and does not expect any such pronouncements to have a significant impact upon adoption, other than on
the presentation of the financial statements.
2. GENERAL DISCLOSURES
2.1. Interest in other entities
The Group has a 49% interest in the Christchurch Engine Centre (‘CEC’) and a 21% interest in Drylandcarbon One Partnership LLC,
which are recognised as investments in associates. The Group's share of equity accounted earnings from the CEC for the six months to
31 December 2024 was $15 million (six months to 31 December 2023: $20 million).
2.2. Interest-bearing assets
Interest-bearing assets are measured at amortised cost, using the effective interest method, less any impairment. The fair value of
interest-bearing assets as at 31 December 2024 was $505 million (30 June 2024: $783 million). Interest-bearing assets are subject to
fixed and floating interest rates. Fixed interest rates in the six months to 31 December 2024 ranged from 3.1% per annum to 6.5% per
annum (six months to 31 December 2023: 3.1% per annum to 6.3% per annum).
NOTES TO THE INTERIM FINANCIAL STATEMENTS
For the six months ended 31 December 2024
INTERIM FINANCIAL REPORT 2025INTERIM FINANCIAL REPORT 2025
20 | AIR NEW ZEALAND GROUPAIR NEW ZEALAND GROUP | 21
NOTES TO THE INTERIM FINANCIAL STATEMENTS (CONTINUED)
For the six months ended 31 December 2024
2. GENERAL DISCLOSURES (CONTINUED)
2.3. Interest-bearing liabilities
Interest-bearing liabilities of $1,388 million (30 June 2024: $1,393 million) are recognised initially at fair value and subsequently measured
at amortised cost, with the changes in market interest rates on certain interest-bearing liabilities measured at fair value. The fair value at
31 December 2024 was $1,419 million (30 June 2024: $1,437 million).
Interest-bearing liabilities include unsecured bonds of $105 million (30 June 2024: $102 million), secured borrowings of $686 million
which are secured over aircraft assets (30 June 2024: $707 million) and unsecured Australian medium term notes of $597 million
(30 June 2024: $584 million). Secured borrowings are subject to both fixed and floating interest rates. Fixed interest rates on secured
borrowings were 1.0% per annum in the six months to 31 December 2024 (six months to 31 December 2023: 1.0% per annum). Unsecured
bonds have a fixed interest rate of 6.61% per annum payable semi-annually and Australian medium term notes have a fixed coupon
between 5.7% and 6.5% per annum payable semi-annually.
2.4. Share capital
During the six months ended 31 December 2024 the Group funded the on-market purchase of 4,558,097 shares for $2 million (six
months ended 31 December 2023: 6,831,839 shares for $5 million). The shares were used to settle obligations under staff share awards
and long-term incentive schemes. The total cost of the purchase including transaction costs has been deducted from ‘Share capital’.
2.5. Hedge reserves
As at 31 December 2024, $14 million of losses (30 June 2024: $3 million of losses) were held in the cash flow hedge reserve and
$14 million of losses (30 June 2024: $2 million of losses) in the costs of hedging reserve. These reserves are combined within the
Statement of Changes in Equity as ‘Hedge reserves’.
2.6. Sale and leaseback transactions
During the six months ended 31 December 2024 four Airbus A320 aircraft were sold and leased back, with a gain on sale of $3 million
being recognised in the Statement of Financial Performance. Lease terms under the arrangement are six years with rights to extend at
fair market rentals. Air New Zealand recognised investing cash inflows of $193 million from the transaction during the period.
2.7. Compensation received from manufacturers
Air New Zealand has entered into confidential agreements with several manufacturers to compensate for the impact of engine shortages
on the business. Compensation of $94 million related to the agreements has been recognised in the Statement of Financial Performance
for the six months ended 31 December 2024 within the below lines:
For the six months ended 31 December
2024
UNAUDITED
$M
2023
UNAUDITED
$M
Other revenue
Fuel
Maintenance
Depreciation and amortisation
83
2
1
8
-
-
-
-
Total compensation received from manufacturers94-
In September 2024, Air New Zealand entered into a confidential compensation agreement with a supplier in connection with the negative
financial impact to Air New Zealand as a result of aircraft delivery delays. The compensation is conditional on delivery of the delayed
aircraft and will be accounted for as a reduction to the cost value of the future aircraft deliveries, which will reduce future depreciation
expense associated with these aircraft. Accordingly, no financial impacts of the agreement are realised in these financial statements.
3. SEGMENTAL INFORMATION
Air New Zealand operates predominantly 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. Resource allocation decisions across the network are
made to optimise the consolidated Group’s financial result.
For the six months ended 31 December
2024
UNAUDITED
$M
2023
UNAUDITED
$M
Analysis of revenue by geographical region of original sale
New Zealand
Australia and Pacific Islands
Asia, United Kingdom and Europe
Americas
2 ,153
413
449
388
2,165
396
454
459
Total operating revenue3,4033 ,474
The principal non-current assets of the Group are the aircraft fleet which is registered in New Zealand and employed across the
worldwide network. Accordingly, there is no reasonable basis for allocating the assets to geographical segments.
4. COMMITMENTS
Capital commitments
31 DEC 2024
UNAUDITED
$M
30 JUN 2024
AUDITED
$M
Aircraft and engines
Other property, plant and equipment and intangible assets
2 ,841
81
2,579
110
2,9222,689
Capital commitments include eight Boeing 787 aircraft (contractual delivery from 2026 to 2029 financial years), two Airbus
A321neo aircraft (delivery in the 2027 financial year) and one ATR aircraft (delivery in the second half of the 2025 financial year).
Lease commitments
31 DEC 2024
UNAUDITED
$M
30 JUN 2024
AUDITED
$M
Aircraft 191 232
191232
Lease commitments include two Airbus A321neo aircraft (delivery in the second half of the 2025 financial year).
5. CONTINGENT LIABILITIES
All significant legal disputes involving probable loss that can be reliably estimated have been provided for in the interim financial statements.
No other significant contingent liability claims are outstanding at balance sheet date.
Outstanding letters of credit and financial guarantees at 31 December 2024 totalled $67 million (30 June 2024: $30 million).
The Group has entered into a partnership agreement with Pratt & Whitney in relation to the Christchurch Engine Centre (‘CEC’),
in which the Group holds a 49% interest. By the nature of the agreement, joint and several liability exists between the two parties.
Total liabilities of the CEC as at 31 December 2024 were $227 million (30 June 2024: $157 million).
6. DIVIDENDS
On 20 February 2025, the Board of Directors declared an interim dividend of 1.25 cents per ordinary share payable on 19 March 2025
to registered shareholders at 7 March 2025. The total dividend payable will be $42 million. No imputation credits will be attached
and supplementary dividends will not be paid to non-resident shareholders. The dividend has not been recognised in these interim
financial statements.
An interim dividend in respect of the 2024 financial year of 2.0 cents per ordinary share was paid on 21 March 2024. No imputation
credits were attached and no supplementary dividends were paid to non-resident shareholders.
A final dividend in respect of the 2024 financial year of 1.5 cents per ordinary share was paid on 26 September 2024. No imputation
credits were attached and no supplementary dividends paid to non-resident shareholders.
A special dividend in respect of the 2023 financial year of 6.0 cents per ordinary share was paid on 21 September 2023. Imputation
credits were attached and supplementary dividends paid to non-resident shareholders.
The dividend reinvestment plan is currently suspended.
7. SUBSEQUENT EVENT
On 20 February 2025, the Board of Directors approved a share buy-back of up to $100 million, to commence in March 2025. An on-market
buy-back component will be acquired on the New Zealand Stock Exchange (NZX) and Australian Securities Exchange (ASX) and an
off-market buy-back component will commence, following any on-market acquisitions, whereby Air New Zealand will acquire a
corresponding number of shares held by the Crown, in order to maintain the Crown’s shareholding. Air New Zealand reserves the right
to vary, suspend without notice, or terminate the buy-back programme at any time.
INTERIM FINANCIAL REPORT 2025
AIR NEW ZEALAND GROUP | 23
INTERIM FINANCIAL REPORT 2025
22 | AIR NEW ZEALAND GROUP
The Auditor-General is the auditor of Air New Zealand Limited
('the Company’) and its subsidiaries (‘the Group’). The Auditor-
General has appointed me, Jason Stachurski, using the staff
and resources of Deloitte Limited, to carry out the review of
the condensed consolidated interim financial statements
(‘interim financial statements’) of the Group on his behalf.
CONCLUSION
We have reviewed the interim financial statements of the
Group on pages 14 to 21, which comprise the Consolidated
Statement of Financial Position as at 31 December 2024,
and the Consolidated Statement of Financial Performance,
Consolidated Statement of Comprehensive Income, Consolidated
Statement of Changes in Equity and Consolidated Statement
of Cash Flows for the six months ended on that date, and
condensed notes to the interim financial statements, including
material accounting policy information.
Based on our review, nothing has come to our attention that
causes us to believe that the interim financial statements of the
Group do not present fairly, in all material respects, the financial
position of the Group as at 31 December 2024, and its financial
performance and cash flows for the six months ended on that
date, in accordance with NZ IAS 34
Interim Financial Reporting
and IAS 34
Interim Financial Reporting.
BASIS FOR CONCLUSION
We conducted our review in accordance with NZ SRE 2410
(Revised)
Review of Financial Statements Performed by the
Independent Auditor of the Entity
(‘NZ SRE 2410 (Revised)’).
Our responsibilities are further described in the Auditor’s
Responsibilities for the Review of the Interim Financial
Statements section of our report.
We are independent of the Group in accordance with the
Auditor-General’s ethical requirements relating to the audit
of the annual financial statements, which incorporate the
independence requirements issued by the New Zealand Auditing
and Assurance Standards Board, and we have fulfilled our other
ethical responsibilities in accordance with these requirements.
In addition to this review and the audit of the Group’s annual
financial statements, we have carried out assurance services
relating to passenger facility charges, and greenhouse gas
emissions reported in the greenhouse gas emissions inventory
report and in the Climate Statement, and compliance with
student fee protection rules. We also provide non-assurance
services in the form of a climate-related disclosure pre-
assurance readiness assessment and services to the Corporate
Taxpayers Group for which the Air New Zealand is a member,
along with a number of other organisations. In addition to
these engagements, principals and employees of our firm
deal with the Group on normal terms within the ordinary
course of trading activities of the Group. These engagements
and trading activities have not impaired our independence as
auditor of the Group.
Other than the audit and these engagements and trading
activities, we have no relationship with, or interests in, the Group.
DIRECTORS’ RESPONSIBILITIES FOR THE INTERIM
FINANCIAL STATEMENTS
The directors are responsible, on behalf of the Group, for the
preparation and fair presentation of these interim financial
statements in accordance with NZ IAS 34
Interim Financial
Reporting
and IAS 34 Interim Financial Reporting and for
such internal control as the Board of Directors determine is
necessary to enable the preparation and fair presentation of
the interim financial statements that are free from material
misstatement, whether due to fraud or error.
The directors are also responsible for the publication of
the interim financial statements, whether in printed or
electronic form.
AUDITOR’S RESPONSIBILITIES FOR THE REVIEW OF THE
INTERIM FINANCIAL STATEMENTS
Our responsibility is to express a conclusion on the interim
financial statements based on our review. NZ SRE 2410
(Revised) requires us to conclude whether anything has come
to our attention that causes us to believe that the interim
financial statements, taken as a whole, are not prepared,
in all material respects, in accordance with NZ IAS 34
Interim
Financial Reporting
and IAS 34 Interim Financial Reporting.
A review of the interim financial statements in accordance
with NZ SRE 2410 (Revised) is a limited assurance
engagement. We perform procedures, primarily consisting
of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical
and other review procedures. The procedures performed in
a review are substantially less than those performed in an
audit conducted in accordance with International Standards
on Auditing (New Zealand) and consequently does not enable
us to obtain assurance that we would become aware of
all significant matters that might be identified in an audit.
Accordingly, we do not express an audit opinion on these
interim financial statements.
Jason Stachurski
Partner
for Deloitte Limited
On behalf of the Auditor-General
20 February 2025
Auckland, New Zealand
INDEPENDENT AUDITOR’S REVIEW REPORT
TO THE SHAREHOLDERS OF AIR NEW ZEALAND LIMITED
For the six months ended 31 December 2024
SHAREHOLDER ENQUIRIES
Shareholder
Communication
Air New Zealand’s investor website airnzinvestor.co.nz
provides shareholders with information on monthly
operating statistics, financial results, stock exchange
releases, corporate governance, annual meetings,
investor presentations, important dates and contact
details. Shareholders can also view webcasts of key
events from this site.
Shareholders who would like to receive electronic news
updates can register online at: airnzinvestor.co.nz or
email Investor Relations directly on: investor@airnz.co.nz
Share Registrar
New Zealand
MUFG Pension & Market Services (NZ) Limited
Level 7, PwC Tower
15 Customs Street West, Auckland, New Zealand
PO Box 91976, Auckland 1142, New Zealand
Phone: +64 9 375 5998 (investor enquiries)
Phone: +64 9 375 5999
Fax: +64 9 375 5990
Email: enquiries.nz@cm.mpms.mufg.com
Investor Relations
Private Bag 92007, Auckland 1142, New Zealand
Phone: +64 9 336 2607
Email: investor@airnz.co.nz
Website: www.airnzinvestor.com
---
Results for announcement to the market
Name of issuerAir New Zealand Limited
Reporting Period6 months to 31 December 2024
Previous Reporting Period6 months to 31 December 2023
CurrencyNew Zealand dollars
Amount (000s)Percentage change
Revenue from continuing
operations
$3,403,000(2.0)%
Total Revenue$3,403,000(2.0)%
Net profit from continuing
operations
$106,000(17.8)%
Total net profit$106,000(17.8)%
Interim Dividend (NZ$)
Amount per Quoted Equity
Security
0.01250000
Imputed amount per Quoted
Equity Security
0.00000000
Record Date07-Mar-2025
Dividend Payment Date19-Mar-2025
Current PeriodPrior comparable period
Net tangible assets per
Quoted Equity Security
$0.57$0.54
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer to media release.
The interim dividend was declared on 20 February 2025.
Authority for this announcement
Name of person authorised
to make this announcement
Jennifer Page, General Counsel and Company Secretary
Contact person for this
announcement
Jennifer Page, General Counsel and Company Secretary
Contact phone number+64 27 909 0691
Contact email address Jennifer.Page@airnz.co.nz
Date of release through MAP20 February 2025
Unaudited interim financial statements accompany this announcement.
PRELIMINARY HALF YEAR REPORT ANNOUNCEMENT
AIR NEW ZEALAND LIMITED
Half Year Ended 31 December 2024 (referred to in this report as the “current half
year”)
1 Information prescribed by NZX
Refer to Results for announcement to the market
2 The following information, which may be presented in whatever way the Issuer considers is
the most clear and helpful to users, e.g., combined with the body of the announcement,
combined with notes to the financial statements, or set out separately.
(a) A Statement of Financial Performance
Refer to the interim financial statements
(b) A Statement of Financial Position
Refer to the interim financial statements
(c) A Statement of Cash Flows
Refer to the interim financial statements
(d) Details of individual and total dividends or distributions and dividend or distribution
payments, which:
i. have been declared, and
ii. relate to the period (in the case of ordinary dividends or ordinary dividends and
special dividends declared at the same time) or were declared within the period (in the
case of special dividends).
On 20 February 2025, the Board of Directors declared an interim dividend for the 2025 financial year
of 1.25 cents per Ordinary Share, payable on 19 March 2025 to registered shareholders at 7 March
2025. The total dividend payable will be $42 million. No imputation credits will be attached and
supplementary dividends will not be paid to non-resident shareholders.
An interim dividend in respect of the 2024 financial year of 2.0 cents per Ordinary Share was paid on
21 March 2024. No imputation credits were attached and supplementary dividends were not paid to
non-resident shareholders.
A final dividend in respect of the 2024 financial year of 1.5 cents per Ordinary Share was paid on
26 September 2024. No imputation credits were attached and supplementary dividends were not paid
to non-resident shareholders.
NZ Cents per
Share$NZm*
Distributions recognised
Final dividend for 2024 financial year on Ordinary Shares1.551
Distributions paid
Final dividend for 2024 financial year on Ordinary Shares1.551
(e) A Statement of Movements in Equity
Refer to the interim financial statements
(f) Net tangible assets per Quoted Equity Security with the comparative figure for the previous
corresponding half year period
(NZ Cents per Share)
Current
period
Comparative
period
Ordinary Shares5754
(g) Commentary on the results
(i) (ii)
Measurement
Current
period
Comparative
period
Basic and diluted earnings per shareNZ cents per share3.1 3.8
Returns to shareholders
(also see section (d) above)
Special dividend on Ordinary Shares*$NZ’m - 202
Final dividend on Ordinary Shares$NZ’m51 -
* Reflects the special dividend for the 2023 financial year.
(iii) Significant features of operating performance:
Refer to the media release
(iv) Discussion of trends in performance:
Refer to the media release
(v) The Issuer’s divided policy
Refer to Air New Zealand website - https://www.airnewzealand.co.nz/dividend-history
(vi) Any other factors that have or are likely to affect the results, including those where the
effect could not be quantified:
Refer to the media release
(h) Audit of financial statements
The annoucement is based on unaudited interim financial statements. The interim financial
statements have been the subject of review by the external auditor, pursuant to NZ SRE 2410
(Revised) Review of Financial Statements Performed by the Independent Auditor of the Entity, issued
by the External Reporting Board.
Basis of preparation
The Group prepares financial statements in accordance with New Zealand Generally Accepted
Accounting Practice (‘NZ GAAP’) which consists of New Zealand equivalents to International
Financial Reporting Standards (‘NZ IFRS’) and other applicable financial reporting standards as
appropriate for profit-oriented entities. The interim financial statements comply with NZ IAS 34:
Interim Financial Reporting and IAS 34: Interim Financial Reporting.
Accounting policies
Refer to Note 1 of the interim financial statements
Changes in accounting policies
Refer to Note 1 of the interim financial statements
Audit Review Report
A copy of the review report is included at the end of the interim financial statements
Additional information
Not applicable
This half year report was approved by the Board of Directors on 20 February 2025.
Dame Therese Walsh
Chair
Section 1: Issuer information
Name of issuerAir New Zealand Limited
Financial product name/descriptionOrdinary Shares
NZX ticker codeAIR.NZ
ISIN (If unknown, check on NZX
website)
NZAIRE0001S2
Type of distribution
(Please mark with an X in the
relevant box/es)
Full YearQuarterly
Half YearXSpecial
DRP applies
Record date07/03/2025
Ex-Date (one business day before
the Record Date)
06/03/2025
Payment date (and allotment date
for DRP)
19/03/2025
Total monies associated with the
distribution
$42,105,804
Source of distribution (for example,
retained earnings)
Operating Free Cash Flow
CurrencyNew Zealand
Section 2: Distribution amounts per financial product
Gross distribution
$0.01250000
Gross taxable amount
$0.01250000
Total cash distribution
$0.01250000
Excluded amount (applicable to
listed PIEs)
N/A
Supplementary distribution amount
$0.00000000
Section 3: Imputation credits and Resident Withhold
Is the distribution imputed
Fully imputed
Partial imputation
No imputation
If fully or partially imputed, please
state imputation rate as % applied
N/A
Imputation tax credits per financial
product
$0.00000000
Resident Withholding Tax per
financial product
$0.00412500
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
N/A
Start date and end date for
determining market price for DRP
N/AN/A
Date strike price to be announced
(if not available at this time)
N/A
Specify source of financial products
to be issued under DRP
programme (new issue or to be
bought on market)
N/A
DRP strike price per financial
product
N/A
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
N/A
Section 5: Authority for this announcement
Name of person authorised to
make this announcement
Jennifer Page, General Counsel and Company Secretary
Contact person for this
announcement
Jennifer Page
Contact phone number
+64 27 909 0691
Contact email address Jennifer.Page@airnz.co.nz
Date of release through MAP20 February 2025
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.