Air New Zealand announces 2025 financial result

28 August 2025

Air New Zealand announces 2025 financial result
Financial summary
• Earnings before taxation of $189 million
• Net profit after taxation of $126 million
• ASK capacity down 4 percent, with up to 6 narrowbody and 5 widebody jets grounded
due to additional global engine maintenance requirements
• Final unimputed ordinary dividend of 1.25 cents per share declared
• $38 million of shares repurchased under the share buyback
1

Air New Zealand today announced earnings before taxation of $189 million for the 2025
financial year, compared with $222 million in the prior year. This result is at the upper end of
the guidance range provided to the market in April. Net profit after taxation was $126 million.
The result reflects resilience despite ongoing global engine maintenance challenges,
significant cost inflation and a soft domestic market.
Passenger revenue declined by two percent to $5.9 billion, driven by a four percent reduction
in overall network capacity from engine availability constraints
2
.
Fuel costs improved 12 percent, or $208 million, reflecting a decline in average jet fuel prices
and lower volumes of fuel consumption in line with constrained capacity.
Non-fuel operating cost inflation of approximately $235 million, was driven primarily by higher
landing charges, labour costs and engineering materials. This represents a year-on-year
increase of around six percent, as system-wide aviation costs continue to ris e faster than the
New Zealand Consumer Price Index. This pricing pressure is expected to persist.
The airline maintained a disciplined focus on cost control. Targeted actions included
renegotiating supplier contracts, reprioritising investment spend and further embedding
procurement discipline across the business to deliver greater value.
The airline’s Kia Mau transformation initiatives delivered approximately $100 million in
benefits, driven by stronger ancillary revenue from improved product offerings, ongoing
premium demand and digital self-service initiatives such as live chat and automated
passenger rebooking. Operational improvements also contributed, reducing disruption costs
and lifting on-time performance by six percentage points in the second half. Together these

1
This includes an on-market buyback component through the NZX and ASX and an off-market buyback 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.
2
Included within passenger revenue is $35 million of credit breakage for customer credits now considered unlikely to be
redeemed.

benefits helped partially offset inflation while laying foundations for stronger long-term financial
performance.
Chair Dame Therese Walsh said the result reflected the underlying strength of the business
and the discipline with which it has been run.
“This is a solid result in a year where the airline faced real operational and economic pressure.
It speaks to the capability of the team, the robustness of the business, and the financial
discipline that Greg has instilled during his time as CEO. While near-term challenges remain,
our balance sheet is strong, and our strategy is clear.
“Based on the result announced today, and reflecting that confidence, the Board has declared
a final unimputed ordinary dividend of 1.25 cents per share, payable on 25 September 2025
to shareholders on record as at 12 September 2025. During the year, Air New Zealand was
also pleased to return $38 million to shareholders through the share buyback programme
announced in February,” said Dame Therese.
Dame Therese also took the opportunity to thank Greg Foran, who will step down later this
year.
“Greg has led the business through an extraordinary period. He’s been clear, considered, and
focused, and leaves Air New Zealand in a position of real strength. On behalf of the Board, I
want to thank him for his leadership.”
On the financial result, Chief Executive Officer Greg Foran said Air New Zealand carefully
managed engine-related disruptions throughout the year, with up to six narrowbody and five
widebody aircraft out of service at times. While the airline received $129 million in
compensation from engine manufacturers, it estimates earnings before taxation of $189
million could have been approximately $165 million
3
higher had the fleet operated as intended.
Mr Foran noted that the airline remained focused on what it could control, making purposeful
decisions to support customers and maintain schedule reliability.
“We acted early and decisively, securing additional engines and aircraft, and optimising our
schedule to keep customers moving. While this came at a significant cost, it was the right
decision to deliver for our customers and maintain network stability,” said Mr Foran.
The airline continues to work closely with both Rolls-Royce and Pratt & Whitney on
compensation arrangements, and to secure a more reliable picture of when engines will return
to service.
“We are confident in the medium-term recovery path but note the next year will likely be every
bit as constrained as the last. Unfortunately, there are no quick fixes, and navigating the next
two years will require the same focus and discipline we’ve shown to date.”
Despite the challenges, we have delivered meaningful progress this year, with four fully
retrofitted Boeing 787-9 Dreamliners returning to service, the unveiling of a new uniform, and
the announcement of plans for a new international lounge at Auckland Airport. Investments in
infrastructure and digital capability were also made, with a new engineering hangar on track

3
This estimate was calculated based on internal modelling using operational assumptions, including capacity, passenger
demand, revenue yield, disruption costs and historical performance across affected routes.

to open later in 2025, the Christchurch Engine Centre expansion progressing well, and around
3,000 staff equipped with AI tools to improve service, speed, and efficiency.
“These achievements show the airline’s ability to execute against our plan, while seizing
opportunities to deliver growth as scale returns,” said Mr Foran.
2026 Outlook
While groundings related to engine availability constraints will continue into 2026, the airline
notes signs of gradual improvement are beginning to emerge.
“While we’re not through it yet, we are seeing early signs that the most acute phase of
disruption will be behind us within the year. The path to recovery won’t be linear, but we’re
approaching it with focus and discipline,” said Mr Foran.
In the year ahead, more than half of the airline’s existing Boeing 787 fleet is expected to be
flying with fully modernised, premium-focused interiors. Air New Zealand will also take delivery
of its first two new Boeing 787s fitted with GE-powered engines, a major milestone in the long-
term fleet renewal strategy. These aircraft, alongside an additional A321neo and ATR, will
support increased capacity within New Zealand, across the Tasman and to North America,
particularly during the peak summer period.
Mr Foran noted these are important steps, not just to restore capacity, but to position the airline
for the future.
“We know what needs to happen to lift our financial performance. Good progress is already
underway, and it will become increasingly evident as the network scales back up and our
transformation work continues.
“While we aren’t yet seeing signs of recovery in the local economy, we remain confident that
demand will return, and that we’re well placed to respond when it does.
“The year ahead will still have its challenges. System-wide aviation costs will be around $85
million higher, driven by increased air navigation fees, passenger levies and landing charges.
Engine constraints will also remain a factor. But we’ve got the right strategy, a strong balance
sheet, and a team that continues to deliver with heart, and that gives us real confidence in
what lies ahead,” said Mr Foran.
Guidance
The outcome and timing of compensation discussions with engine manufacturers remains
uncertain, making it challenging for the airline to provide earnings guidance for the full year.
In the near-term, that uncertainty, combined with sharp recent increases in aviation sector
levies and other charges, all set against the backdrop of subdued domestic demand, is
expected to adversely impact the airline’s financial performance in the first half.
As such, the airline expects earnings before taxation for the first half of the 2026 financial year
to be similar to or less than that reported in the second half of the 2025 financial year ($34
million).
The airline is well positioned for recovery when the engine challenges and economic
conditions start to alleviate, but these issues continue to have a significant impact on current
financial performance.
Ends

This announcement has been authorised for release by Jennifer Page, General Counsel &
Company Secretary.
For investor relations queries, please contact: For media enquiries, please contact:
Kim Cootes, Head of Investor Relations
Email: kim.cootes@airnz.co.nz
Phone: +64 27 297 024
Air New Zealand Communications
Email: media@airnz.co.nz
Phone: +64 21 747 320

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AIR NEW ZEALAND 2025 ANNUAL RESULTS ALL INFORMATION IS PRIVATE AND CONFIDENTIAL
2025
ANNUAL
RESULTS
Investor presentation
28 August 2025
NZX: AIR / ASX: AIZ / US OTC: ANZLY

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AIR NEW ZEALAND 2025 ANNUAL 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
consolidated financial statements for the year ended 30 June 2025, 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 year ended 30 June 2025 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
Air New Zealand, 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: Adjusted CASK, Net Debt,
and EBITDA. Amounts used within the calculations are derived from the audited
Group annual financial statements and Five-Year Statistical Review contained
in the 2025 Annual Report. 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 43 for a glossary of the key terms used in this presentation.
FORWARD-LOOKING STATEMENTS AND DISCLAIMER

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AIR NEW ZEALAND 2025 ANNUAL RESULTS
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2025 Highlights
2025 Financial Performance
Strategic Business Update
Outlook
Agenda

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AIR NEW ZEALAND 2025 ANNUAL RESULTS ALL INFORMATION IS PRIVATE AND CONFIDENTIAL
2025 Highlights
Greg Foran
Chief Executive Officer

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AIR NEW ZEALAND 2025 ANNUAL RESULTS
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Focused on steady delivery amidst significant near-term operational
complexity
Grounded aircraft position expected to improve slowly, with majority
returned to service by end of calendar 2027
Strong capacity growth from 2027 onwards driven by new Boeing
787 deliveries and alleviation of engine issues
Demand trends remain strong for international, boosted by
premium cabin strength and ancillary offerings; domestic remains
challenging
Aviation system cost inflation has consistently outpaced New
Zealand CPI with that trend expected to continue
Transformation benefits on track, partially offsetting current cost
pressure. Benefits become margin-accretive as network scale
rebuilds
Key messages

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ASKs down 4%
With up to 11 jet aircraft grounded at
times due to additional engine
maintenance requirements globally
16m passengers flown
Across the network – down 3%
on 2024
> 5m loyalty members
Up 9% on 2024
2025 Year in review – a resilient underlying business
Network growth temporarily constrained by engine availability
$189m earnings
before taxation
Includes $35m of unused travel
credit breakage
~$165m
1
adverse impact
to 2025 earnings
From aircraft availability challenges,
net of compensation of $129m
$487m cargo revenue
Up 6% on 2024
1.25 cps unimputed
final ordinary dividend
Declared for 2025; resulting in total
2025 dividends declared of 2.5 cps
$38m to shareholders
Via the share buyback, up to
~$60m remaining under the
approved programme
Awarded World’s
Safest Airline
For 2025, rated by
AirlineRatings.com
1
This estimate was calculated based on internal modelling using operational assumptions, including capacity, passenger demand, revenue yield, disruption costs and historical performance across affected routes.

7
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•Good demand for Auckland, Christchurch and
Queenstown jet markets
•Softer Wellington and regional demand, driven
by Government and Corporate segments
•Corporate demand stabilised but remains
~10% below historical levels
•Improved operational reliability driving higher
customer satisfaction
•International passenger growth supporting
Domestic network
•Low-single digit growth expected in 2026
•Strong leisure demand on the Tasman, passenger
share ahead of capacity
•Continued demand strength for Pacific Islands,
passengers up on stable market capacity
•Steady forward bookings into 2026, supported by
Tasman and Pacific Islands growth
•New Christchurch-Adelaide seasonal route and
resumption of Nouméa in 2026
•Cargo market share improved in key markets
•Strong Kiwi-outbound demand to Asia -
Singapore, Japan and Bali performing well​
•Robust North America premium demand,
economy cabins showing shorter booking
curves
•Targeting high single digit US capacity growth
over peak Northern Winter season, supported
by return of retrofit aircraft
•Wet lease deployment in Northern Winter to
support schedule resiliency
•Cargo demand strong, particularly out of Asia
Domestic
Long-Haul
Short-Haul
Taking steps to stimulate Domestic market
Demand strong across international markets

8
AIR NEW ZEALAND 2025 ANNUAL RESULTS
8
Investments in the customer proposition and our people are
generating positive results
Key customer metrics
improved 2H vs 1H 2025
1H2HMvmt
On-time
performance
74.5%80.6%+6.1pp
Customer
satisfaction
8384+1pts
Controllable
cancellations
2.7%1.7%+1.0pp
Digital self
service on
contact centre
channels
34%42%+8pp
Unlock operational efficiencies
Win on customer experience
•First four retrofitted 787 back, three more to come in calendar 2025
•Automated passenger rebooking capability launched on Domestic
•New Contact Centre Livechat channel
•Refreshed Loyalty tiers and benefits work underway
Maximise revenue potential
•NextGen revenue management tool now rolled out to all route
groups
•Upgraded groups booking system
•New cargo management system launched
Unlock operational efficiencies
•Digitised end-to-end catering system launched
•Enabled AI tools across ~3,000 of our people
•Ops Collab tool rolled out across entire Domestic network
•New engineering hangar in Auckland nearing completion,
unlocking maintenance productivity and capability

9
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What we said at
2024 Investor Day:
2025
Transformation initiatives delivered ~$100 million in
EBITDA benefits in 2025
2025 Actuals
• NextGen revenue management on
Domestic and Tasman/Pacific Islands
networks, partial benefit on Long-Haul
• Direct ancillary buy-ups
• Contact Centre efficiencies
• Airpoints
TM
store enhancements
• Operations productivity
• Inflight catering system efficiencies
• Cargo digital platform efficiencies
Benefits in 2025 included:
~$100m

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Actively managing aircraft availability from global engine
maintenance delays
7 - 8
Grounded
1
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
Narrowbody
Widebody
Narrowbody
Widebody
1H 2025
2H 2025
1H 2026E
10 - 11
Grounded
1
9 - 10
Grounded
1
Up to 11 aircraft grounded out of 60 jet fleet in 2025
Latest actions to mitigate impact
Two leased Airbus A321neo aircraft (up to 12
year lease) delivered
Investing in four additional short-term leased
Pratt & Whitney engines to enable additional
neo flying – taking total pool of spares to 19
Schedule adjustments to reflect changing
engine availability forecasts
Renegotiating new compensation terms with
both Rolls-Royce and Pratt & Whitney

11
AIR NEW ZEALAND 2025 ANNUAL RESULTS ALL INFORMATION IS PRIVATE AND CONFIDENTIAL
2025 Financial
Performance
Richard Thomson
Chief Financial Officer

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•Operating revenue of $6.8 billion,
comparable with the prior year
•Earnings before taxation of $189 million,
down 15%
•Net profit after taxation of $126 million,
down 14%
•Liquidity of $1.7 billion
1
•Net Debt to EBITDA of 1.1x
•Full year unimputed ordinary dividends of
2.5 cents per share
2
Covid-19 impacted
period
Earnings/(Loss) Before Taxation
($ millions)
1
Includes $1.4 billion cash and $250 million in undrawn funds under the syndicated revolving credit facility (established in May 2024).
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. NPAT is calculated on a rolling twelve-month basis, divided
by two to reflect the six-monthly period.
(415)
(810)
574
222
189
20212022202320242025
Financial summary

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Impact of engine delays on financial performance has
been significant, despite compensation
Earnings before taxation adjusted for estimated impact of engine issues
($ millions)
~$165 million
1

residual adverse impact to
earnings, despite compensation of
$129 million in 2025
189
2025
Earnings
before taxation
(Reported)
2025
Estimated impact of
engine issues
(107)
Compensation
received relating to
2025
financial year
(22)
Compensation
received relating to
to other
periods
2025
Comparable
Earnings before
taxation
~340 to 380
~280
to
~320
1
This estimate was calculated based on internal modelling using operational assumptions, including capacity, passenger demand, revenue yield, disruption costs and historical performance across affected routes.

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Additional commentary
•Revenue and other income includes $92
million favourable movement from
compensation received
•Broad based price inflation of ~6% across
the non-fuel cost base, a headwind of
$235 million vs the prior year
•Waterfall chart includes the benefit of
transformation initiatives as outlined on
slide 9
Profitability waterfall
2025 price change
Maintenance, aircraft
operations and
passenger services
+8%
Labour+5%
Sales, marketing and
other expenses
+2%
1
For further details on fuel cost movement, refer to slide 38.
2
Full-time equivalent staff levels were broadly flat at ~11,700.

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Addressing inflation with:
Continued investments in
digital systems and tooling to
drive cost efficiencies
Scaling costs as our network
growth returns into 2027/28
Passing on some of the
increases through fares
Aviation system inflation has outpaced NZ CPI
Trend expected to continue
Cumulative price inflation across cost base vs NZ CPI
(2019 vs 2025)
Prudent management of
these levers is a key focus
30%
26%
39%
27%
30%
57%
40%

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16
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AIR NEW ZEALAND 2025 ANNUAL RESULTS
•Reported CASK increased 4.2%, largely due to reduced capacity, ongoing inflationary
pressures and inefficiencies associated with fleet constraints
•Excluding the impact of fuel price movement and foreign exchange in the prior year,
underlying CASK increased 7.5% due to:
–Non-fuel operating cost inflation of ~6% across the cost base
–Diseconomies of scale and inefficiencies resulting from significant levels of grounded
aircraft
2025 CASK adjusted for estimated
impact of engine maintenance delays
Unit cost increases reflect impact of fleet constraints and
continued price pressure across the aviation ecosystem
13.81
14.39
0.46
0.57
JUN 2024
CASK
DISECONOMIES
OF SCALE
AND
INEFFICIENCIES
PRICE
(0.50)
FUEL
PRICE
0.05
FOREIGN
EXCHANGE
JUN 2025
CASK
REPORTED
JUN 2025
CASK
(0.54)
ADJUST FOR
ENGINE-RELATED
DISECONOMIES
AND
INEFFICIENCIES
ADJUSTED
JUN 2025
CASK
14.39
13.85
REPORTED CASK
(cents)

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Actual and forecast aircraft capital expenditure
1
•Forecast investment of ~$3.7 billion in
aircraft and associated assets through to
2030
2
‒Options exercised for two additional 787-
10s, expected delivery in 2028 and 2030
3
‒Approximately $210 million lower forecast
expenditure relates to stronger New
Zealand Dollar compared to 2025 Interim
Results forecast
•Chart includes the forecast cost of interior
retrofit of 14 existing 787 aircraft and 7x 777-
300ER aircraft
‒Estimated aggregate cost of ~$500
million for both programmes, phased over
the next ~3 years
‒787 retrofit currently expected to be
completed by end of calendar 2026
‒First 777-300ER cabin refresh expected to
start by early calendar year 2027
1
Includes progress payments on aircraft and aircraft improvements (e.g. refurbishment); excludes engine maintenance. Please refer to slide 42 for fleet
delivery table. Assumes NZD/USD FX rate of 0.60.
2
Based on expected delivery dates, not contractual delivery dates.
3
Contractual options were exercised post 30 June 2025.
Fleet investment update
0
100
200
300
400
500
600
700
800
900
1,000
1,100
1,200
1,300
2024202520262027202820292030
Forecast excl. retrofitForecast retrofitHistorical
$ millions

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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
•Purchased one 777-300ER off lease for future fleet
resilience
•Sixth owned PW1100 spare engine purchased
•Two retrofitted 787-9 aircraft back in service, with a
further two returning post balance date
•Declared ~$40 million unimputed ordinary final
dividend
•Returned ~$40 million to shareholders in 2H 2025, as
part of a $100 million share buyback programme
•Transitioned to new global payments provider,
releasing ~$175 million in cash collateral to available
liquidity
•~$535 million debt and leases paid down
•Moody’s Baa1 (stable) credit rating reaffirmed Jul 2025
PROGRESS MADE IN 2025
Robust capital management metrics in preparation for
increased capex profile
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.

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GREG FORAN
CHIEF EXECUTIVE OFFICER
RICHARD THOMSON
CHIEF FINANCIAL OFFICER
Strategic Business
Update

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FY24FY25FY28 ESTIMATEFY27 ESTIMATEFY26 ESTIMATE
Current estimates of aircraft return point to a slower rate
than anticipated 9 to 12 months ago
Available Airbus A320/321ceos/neos
1
New Airbus A321neo deliveries
Available domestic jet fleet profile
Illustrative internal estimates for available fleet impacted by engine issues
Available widebody fleet profile
Available Boeing 787s and 777s
New Boeing 787 deliveries
Short-term leased widebodies
17/20
jet aircraft
15/20
jet aircraft
Estimate
21/22
jet aircraft
20/21
widebody
aircraft
19/24
widebody
aircraft
Estimate
27/28
widebody
aircraft
FY24FY25FY28 ESTIMATEFY27 ESTIMATEFY26 ESTIMATE
1
Chart excludes Air New Zealand’s short-haul international narrowbody jet aircraft.
Forecast periodForecast period

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Return to network scale now estimated by 2028, largely
due to widebody availability
Domestic capacity growth
(Billion ASKs)
Domestic estimated to grow at a CAGR
of ~1% to 2%
1
International capacity growth
(Billion ASKs)
International estimated to grow at a CAGR of
~3% to 4%
2
Pre-Covid
capacity
2024
Actual
2025
Actual
202620272028
6.6
6.4
1
2024 to 2028 CAGR. Compared to ~2% to 3% CAGR growth as estimated at the airline’s Investor Day in Nov 2024, with the reduction due to latest internal estimates of A321neo aircraft availability.
2
2024 to 2028 CAGR. Compared to ~3% to 5% CAGR growth as estimated at the airline’s Investor Day in Nov 2024, with the reduction due to latest internal estimates of B787 aircraft availability.
Pre-Covid
capacity
2024
Actual
2025
Actual
202620272028
35.4
34.1
Current assumption
Previously communicated at 2024 Investor Day
Current assumption
Previously communicated at 2024 Investor Day

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Pace of unit cost improvement impacted by slower return
of our most efficient fleet
Certain unit cost headwinds are temporary and improvement
will occur gradually as engine issues alleviate...
Aviation system inflation
•Constrained aviation supply chain expected to
persist in the medium-term, continuing to impact
OEM pricing and delivery timelines
•Expectation that aviation-related price growth in
NewZealand will continue to run ahead of CPI
•Aeronautical charges set to rise substantially in
the coming years, with planned increases well
above NZ CPI
Temporary operational resiliency
•Direct and indirect costs of managing
aircraft on ground
Sub-scale network
•Currently ~12% fewer ASKs than pre-Covid
...while other costs will be longer lasting
Managed with cost reductions, fleet efficiencies and digital investments
to support productivity and scale benefits

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Commercial & Network
Cost efficiencies
Ancillary & Loyalty
Transformation benefits play a critical role
With initiatives on track to deliver cumulative $300 to $400 million benefit to
EBITDA performance by 2028
Transformation benefits will shift
from helping offset cost inflation in
2025 and 2026 to driving
incremental profit improvement as
the network scales back up
$300m
to
$400m

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Financed
Unencumbered
2025
Robust liquidity and prudent capital management framework
provide resiliency through this period
Significant debt headroom
leading into increased
capex period
Additional resilience and
optionality with ~$1.8 billion
unencumbered fleet
Liquidity at upper
bounds of $1.2 billion to
$1.5 billion target
Liquidity
target range
Leverage
target range
1.5 – 2.5x
20252025
Cash
Undrawn Debt Facilities
Net Debt / EBITDA
38% of
aircraft value is
unencumbered,
including 20% from
latest generation
fleet
1.1x
$1.7b
$4.9b
$1.8b

25
AIR NEW ZEALAND 2025 ANNUAL RESULTS ALL INFORMATION IS PRIVATE AND CONFIDENTIAL
Outlook
Greg Foran
Chief Executive Officer

AIR NEW ZEALAND 2024 ANNUAL RESULTS
26
26
AIR NEW ZEALAND 2025 ANNUAL RESULTS
26
Sector
2025 ASKs
(billions)
1H 2026
(vs 1H 2025)
2H 2026
(vs 2H 2025)
2026
Estimated
Capacity
1
Commentary
Domestic6,4092% to 3%3% to 5%3% to 4%
•Assumes one A321neo returns to
service with procurement of additional
leased engines
Tasman and Pacific
Islands
11,5629% to 10%9% to 10%9% to 10%
•Strong growth supported by widebody
flying and additional A321neo aircraft in
May and August 2025
International long-
haul
22,530(4%) to (2%)1% to 3%(2%) to 0%
•Enabled by six month wet lease aircraft
in NW25 season and includes 2 new
787 deliveries flying from Q4 2026
Group
40,5010% to 2%3% to 5%2% to 4%
Equates to ~90% of
pre-Covid capacity
1
Compared to 2025 levels. Based on expected delivery dates, not contractual delivery dates. Subject to a high degree of uncertainty based on the ongoing extended maintenance requirements on our A321neo and 787 fleet.
2026 capacity growth reflects cumulative impact of
actions taken to mitigate engine availability constraints

AIR NEW ZEALAND 2024 ANNUAL RESULTS
27
27
AIR NEW ZEALAND 2025 ANNUAL RESULTS
27
Business factors
• New compensation agreements currently under
negotiation with Rolls-Royce and Pratt & Whitney
• Premium cabin demand strength expected to continue,
with ~12% more seats in 2026 compared to 2025
• Two new GE-powered Boeing 787s expected to be
deployed in the fourth quarter of the financial year
• Continued price increases in landing charges, aviation
security and air navigation for 2026 are expected to
result in ~$85 million (13%) incremental cost
• Interchange regulation impact on loyalty cash flows
currently uncertain
• Have not observed material impact from supplier costs
related to tariffs – remains under close watch
2026 considerations
Financial factors
• Covid related customer travel credits will expire 31 Jan
2026; potential additional breakage for 1H 2026
• Fuel costs are ~80% hedged for 1H 2025 and ~55%
hedged for 2H (~70% for full year); at US$85/bbl jet fuel,
costs would be ~$1.5 billion
• Non-fuel operating cost inflation expected to increase ~3%
to 5%
• Life cycle maintenance expense primarily on 787 and A320
fleets expected to drive ~$50 million headwind
• Incremental depreciation of $60 million to $80 million,
driven largely by 787 retrofit and 787 deliveries
• FX is ~50% hedged at USD/NZD of 0.59

AIR NEW ZEALAND 2023 ANNUAL RESULTS
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AIR NEW ZEALAND 2025 ANNUAL RESULTS
28
28
28
AIR NEW ZEALAND 2025 ANNUAL RESULTS
The outcome and timing of compensation discussions with engine manufacturers remains
uncertain, making it challenging for the airline to provide earnings guidance for the full year.
In the near-term, that uncertainty, combined with sharp recent increases in aviation sector
levies and other charges, all set against the backdrop of subdued domestic demand, is
expected to adversely impact the airline’s financial performance in the first half.
As such, the airline expects earnings before taxation for the first half of the 2026 financial
year to be similar to or less than that reported in the second half of the 2025 financial year
($34 million).
The airline is well positioned for recovery when the engine challenges and economic
conditions start to alleviate, but these issues continue to have a significant impact on current
financial performance.
2026 outlook

AIR NEW ZEALAND 2025 ANNUAL RESULTS
29

30
AIR NEW ZEALAND 2025 ANNUAL RESULTS ALL INFORMATION IS PRIVATE AND CONFIDENTIAL
Supplementary
Information

30 Jun 202530 Jun 2024
Capital management targets
1
Grossdebt
2
(2,838)(2,816)
Cash,restricteddepositsandnet
openderivatives
2
1,7582,044
Netdebt
2
(1,080)(772)
Grossdebt/EBITDA2.9x2.9x
Netdebt/EBITDA1.1x0.8x
NetDebtto EBITDAratio
of1.5x to 2.5x
Returnoninvestedcapital(ROIC)8.2%9.7%
TargetROIC abovepre-tax WACC
Totalliquidity
2
1,6861,529
Target liquidity range of
$1.2 billion to $1.5 billion
Moody'sratingBaa1 stable (investment grade)Baa1 stable (investment grade)
Investment grade
Shareholderdistributions
1.25cps interim and 1.25 cps final
unimputed ordinarydividends
2.0 cps interim and 1.5 cps final
unimputed ordinary dividends
Ordinarydividendpayoutratioof 40%
to70%of netprofitafter taxation
(NPAT)
3
1
Please see slide 18for more information on the capital management framework.
2
In $ millions.
3
NPAT is calculated on a rolling twelve-month basis.
Key capital management metrics
31
AIR NEW ZEALAND 2025 ANNUAL RESULTS

AIR NEW ZEALAND 2024 ANNUAL RESULTS
32
32
32
AIR NEW ZEALAND 2025 ANNUAL RESULTS
Jun 2025
$M
Jun 2024
$M
Movement
$
Movement
%
Operating revenue
6,7556,7523NM
Earnings before taxation
189222(33)(15%)
Net profit after taxation
126146(20)(14%)
Operating cash flow
94081013016%
Cash position
1,4361,279
15712%
Ordinary dividends declared
2.5 cps3.5 cps
(1.0) cps(29%)
Financial overview

AIR NEW ZEALAND 2024 ANNUAL RESULTS
33
33
33
AIR NEW ZEALAND 2025 ANNUAL RESULTS
Jun 2025Jun 2024Movement
1
%
Passengers carried (‘000s)15,90716,460(3%)
Available seat kilometres (ASKs, millions)
40,50142,067
(4%)
Revenue passenger kilometres (RPKs, millions)
33,76934,285
(2%)
Load factor
83.4%81.5%
1.9 pts
Passenger revenue per ASKs as reported (RASK, cents)
14.414.1
2%
Passenger revenue per ASKs, excluding FX (RASK, cents)
14.414.1
2%
Passenger revenue per ASKs excluding FX and unused credit
breakage (RASK, cents)
2
14.313.9
3%
1
Calculation based on numbers before rounding.
2
This is RASK excluding $35 million in unused customer credit breakage (Jun 2024: $90 million) which has been recognised within passenger revenue in 2025.
Group performance metrics

AIR NEW ZEALAND 2024 ANNUAL RESULTS
34
34
34
AIR NEW ZEALAND 2025 ANNUAL RESULTS
1
Calculation based on numbers before rounding.
2
This is RASK excluding $10 million in unused customer credit breakage (Jun 2024: $15 million) which has been recognised within passenger revenue in 2025.
Jun 2025

Jun 2024

Movement
1
%
Passengers carried (‘000s)
10,14210,721
(5%)
Available seat kilometres (ASKs, millions)
6,4096,620
(3%)
Revenue passenger kilometres (RPKs, millions)
5,3115,571
(5%)
Load factor82.9%84.2%
(1.3 pts)
Passenger revenue per ASKs as reported (RASK, cents)
30.129.6
2%
Passenger revenue per ASKs, excluding FX (RASK, cents)
30.029.6
2%
Passenger revenue per ASKs excluding FX and unused credit
breakage (RASK, cents)
2
29.929.3
2%
Domestic

AIR NEW ZEALAND 2024 ANNUAL RESULTS
35
35
35
AIR NEW ZEALAND 2025 ANNUAL RESULTS
Jun 2025Jun 2024Movement
1
%
Passengers carried (‘000s)3,8403,8111%
Available seat kilometres (ASKs, millions)
11,56211,655(1%)
Revenue passenger kilometres (RPKs, millions)10,0559,8312%
Load factor87.0%84.3%
2.7 pts
Passenger revenue per ASKs as reported (RASK, cents)
13.313.0
2%
Passenger revenue per ASKs, excluding FX (RASK, cents)
13.213.0
1%
Passenger revenue per ASKs excluding FX and unused credit
breakage (RASK, cents)
2
13.112.9
1%
1
Calculation based on numbers before rounding.
2
This is RASK excluding $11 million in unused customer credit breakage (June 2024: $17 million) which has been recognised within passenger revenue in 2025.
Tasman & Pacific Islands

AIR NEW ZEALAND 2024 ANNUAL RESULTS
36
36
36
AIR NEW ZEALAND 2025 ANNUAL RESULTS
Jun 2025Jun 2024Movement
1
%
Passengers carried (‘000s)1,9251,928NM
Available seat kilometres (ASKs, millions)
22,53023,792(5%)
Revenue passenger kilometres (RPKs, millions)18,40318,883(3%)
Load factor81.7%79.4%
2.3 pts
Passenger revenue per ASKs as reported (RASK, cents)10.610.42%
Passenger revenue per ASKs, excluding FX (RASK, cents)10.610.42%
Passenger revenue per ASKs excluding FX and unused credit
breakage (RASK, cents)
2
10.510.14%
1
Calculation based on numbers before rounding.
2
This is RASK excluding $14 million in unused customer credit breakage (Jun 2024: $58 million) which has been recognised within passenger revenue in 2025.
International long-haul

37
AIR NEW ZEALAND 2025 ANNUAL RESULTS
37
•Cargo revenue of $487 million, up 6% on prior
year. Key drivers include:
−Volume driven by increased load factors in
international long-haul services, particularly on
North American routes despite reduced capacity
−Increased capacity from larger 777 aircraft on
the Asian network further strengthened by
strong cargo demand
−Partially offset by increased international
competition driving reduced yields by 2% on the
prior year
•Investment in new digital platform in 2025 and
upgrades to revenue management tooling in
2026 will drive future growth
Cargo performance
459
487
32
2024VolumeYield
6
FX2025
(10)
Cargo revenue
($ millions)

AIR NEW ZEALAND 2024 ANNUAL RESULTS
38
38
AIR NEW ZEALAND 2025 ANNUAL RESULTS
38
Fuel cost movement
29
JUN 2024
FUEL COSTS
VOLUMEUNDERLYING PRICE
19
NET HEDGING
IMPACT
FX
MOVEMENTS
JUN 2025
FUEL COSTS
1,692
1,484
(27)
(229)
(
$210 million
effective decrease
in fuel price
(12%)
Jun 2025 hedge
loss of $37m
vs
Jun 2024 hedge
loss of $18m
Decrease in jet
fuel price
US
$105to
US
$88per barrel

AIR NEW ZEALAND 2023 ANNUAL RESULTS
39
AIR NEW ZEALAND 2025 ANNUAL RESULTS
39
39
39
AIR NEW ZEALAND 2025 ANNUAL RESULTS
1
Includes cost of carbon and the associated hedging portfolio, in addition to SAF purchases.
2
As at 15 Aug 2025
3
Assumes NZD/USD rate of 0.60.
39
Fuel hedging
•Currently hedging Brent Crude only; exposed to
pricing movements in the crack spread
•Hedged with collar structures, balancing fuel cost
protection and participation to lower prices
•Assuming an average jet fuel price of US$85 per
barrel for 2026, fuel cost would be ~$1.5 billion
1

•2026 hedges cover ~70% of estimated volumes of
~8.3 million barrels
2
Foreign exchange hedging
•US dollar is ~50% hedged for 2026 at 0.59
Fuel hedge position
(as at 15 Aug 2025)
Period
Hedged volume
(in barrels)
% hedged
1H 20263,400,00081
2H 20262,250,00055
2026 Fuel cost
3
sensitivity
Fuel and FX volatility expected to continue – well hedged for
2026
1,000
1,100
1,200
1,300
1,400
1,500
1,600
1,700
1,800
65758595105
NZD costs of fuel (millions)
Singapore Jet USD Barrel
UnhedgedHedged
1

AIR NEW ZEALAND 2024 ANNUAL RESULTS
40
40
AIR NEW ZEALAND 2025 ANNUAL RESULTS
40
•Gross Debt of $2.8 billion comprising:
–~$1.2 billion secured aircraft debt and finance leases
1
–~$950 million operating leases
1
–~$700 million unsecured NZD bond and AUD notes
•Cash of ~$1.4 billion, restricted deposits of $335 million and net open
derivatives of ($13) million
•Net Debt of ~$1.1 billion
•Undrawn $250 million Revolving Credit Facility, expiring May 2027
•Weighted average debt and finance lease maturity of ~2.8 years
2
•An unsecured bond issuance in 1H 2026 is currently under
consideration
Capital structure as at 30 June 2025Debt maturity profile
($ millions)
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.
Debt structure and maturity profile
253
245
130
95
74
174
151
46
105
323
270
FY26FY27FY28FY29FY30FY31FY32
25
FY33FY34
Secured Debt and Finance Leases
New Zealand Retail Bond
Australian Medium Term Notes

AIR NEW ZEALAND 2024 ANNUAL RESULTS
41
41
AIR NEW ZEALAND 2025 ANNUAL RESULTS
41
Unencumbered aircraft as at 30 Jun 2025
777-300ER3x
787-91x
A320/321neo7x
A320ceo9x
AT R 7 2-6009x
Q30023x
Current market valuesDebt and equity mix
4.94.9
UnencumberedFinancedEquityDebt
Aircraft values and capital mix
($ billions
2,3
)
1
Excludes spare engine assets and operating leases (leases without a purchase option).
2
Aircraft valuations based on Aircraft Value Analysis Company Limited (AVAC) as at 30 June 2025. Aircraft valuations are subject to market conditions, aircraft condition, FX rates, technology advancement and other factors.
3
Aircraft values are in USD and converted to NZD at June 2025 balance sheet rate of 0.6050. Foreign currency denominated debt outstanding as at 30 June 2025 also converted to NZD at balance sheet rates (JPY: 87.30, EUR: 0.5160).
In addition to ~$1.8 billion in
unencumbered aircraft,
there is significant equity
value within financing
structures
1
.
Unencumbered aircraft of $1.8 billion

AIR NEW ZEALAND 2024 ANNUAL RESULTS
42
42
AIR NEW ZEALAND 2025 ANNUAL RESULTS
42
AircraftEngines
Number in
Fleet
Average Age
1
(Years)
Expected Delivery Dates
20262027202820292030
International
777-300ER
GE90
Core fleet: 7
Short term
leased: 3
13.2
13.6
787-9
3
Trent 1000
(GE engines
for 2026
deliveries
onward)
148.823221
A321neo
(short haul)
PW110085.512
A320neo
(short haul)
PW1100 65.3
Domestic
A321neo
(domestic)
PW1100 52.12
A320ceo
(domestic)
V25001711.4
ATR72-600
PW127308.01
Q300
PW1232318.4
TOTAL
1139.6
2
Fleet profile
3
New 787 deliveries expected from 2026 to 2029 will be a mix of 787-9 and 787-10 aircraft. Contractual options were
exercised for two 787-10s post 30 June, with expected delivery in 2028 and 2030.
1
Total fleet average age is seat weighted for operating aircraft. This includes aircraft currently grounded due to maintenance delays.
2
This excludes short-term leased aircraft.

AIR NEW ZEALAND 2024 ANNUAL RESULTS
43
43
AIR NEW ZEALAND 2025 ANNUAL RESULTS
43
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 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 for the period
Revenue Passenger Kilometres (RPKs)Number of revenue passengers carried multiplied by the distance flown (demand)
Return on Invested Capital (ROIC)Operating earnings before finance costs and taxation divided by the average capital employed
The following non-GAAP measures are not audited: Adjusted CASK, Net Debt and EBITDA. Amounts used within the calculations are derived from the audited Group financial statements and Five-Year Statistical Review contained in the 2025
Annual Report. 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 2024 ANNUAL RESULTS
44
44
AIR NEW ZEALAND 2025 ANNUAL RESULTS
44
Resources
Contact information
Email: investor@airnz.co.nz
Share registrar: enquiries@linkmarketservices.co.nz
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 2024 ANNUAL RESULTS
45

---

Annual Report
2025

About this ReportContents
At Air New Zealand, we are driven by a deep sense of purpose
– to keep New Zealanders connected to each other and the world,
even in the most testing of times.
From our first trans-Tasman flight in
1940 to the dynamic global network we
operate today, we have continued to
adapt and evolve, all while maintaining
a relentless focus on Aotearoa New
Zealand and its people.
This year’s report highlights the
determination and care that defined our
performance in 2025. Ongoing global
supply chain constraints and increased
engine maintenance requirements
placed significant pressure on fleet
availability, which tested the agility of our
operation. Yet even in the face of these
constraints, we continued to progress
our strategic initiatives, investing in our
people, our customer experience and
the future of flight.
Through it all, our people demonstrated
remarkable tenacity, ingenuity and
heart, staying focused on what matters
most – our customers, our country and
each other.
Inside this report, you’ll find an
overview of the key moments that
shaped our year, all made possible by
the resilience and dedication of around
11,700 Air New Zealanders.
We welcome your feedback on this
report. Please send any comments or
suggestions to investor@airnz.co.nz.
A digital version of this report, along
with previous annual and interim reports
is available at: airnewzealand.co.nz/
financial-information.
This report covers the financial year
ended 30 June 2025 and is dated
28 August 2025. It has been approved
by the Board and is signed on behalf of
the Air New Zealand Group by Dame
Therese Walsh, Chair of the Board, and
Greg Foran, Chief Executive Officer.
In conjunction with the Air New Zealand
2025 Climate Statement, this document
constitutes the 2025 Annual Report to
shareholders of Air New Zealand Limited.
Dame Therese Walsh
Chair
Greg Foran
Chief Executive Officer
About this Report 01
Our Purpose 02
Air New Zealand at a Glance 04
Performance Highlights 06
Letter from the Chair and
Chief Executive Officer 07
Business Highlights 12
Our Strategy 15
Our Financial Performance 18
Financial Commentary 19
Financial Summary 22
Change in Earnings 23
Our Sustainability Update 24
Our Corporate
Governance Statement 35
Remuneration Report 48
Employee Remuneration 51
Interests Register 52
Directors’ Interests in
Air New Zealand Securities 53
Indemnities and Insurance 53
Subsidiary Companies 53
Other Disclosures 54
Operating Fleet Statistics 55
Securities Statistics 56
General Information 58
Directors’ Statement 59
Our Consolidated
Financial Statements 60
Statement of Financial
Performance 62
Statement of
Comprehensive Income 63
Statement of Changes in Equity 64
Statement of Financial Position 65
Statement of Cash Flows 66
Statement of Accounting Policies 67
Notes to the Financial Statements 70
Independent Auditor’s Report 103
Five Year Statistical Review 107
Shareholder Directory 111
Front cover: Sapphire, Cabin Crew.
Back cover: Hanna, Cabin Crew.
01
Air New Zealand GroupAir New Zealand Annual Report 2025

Our Purpose
Our guiding purpose is to
enrich our country by connecting
New Zealanders to each other,
and New Zealand to the world.
Ko au ko koe, ko koe ko au

I am you and you are me
He toa takitini
be proud of who you are and
where you have come from
Whāia te iti kahurangi
strive for what matters most and
don’t let obstacles get in your way
Ko Aotearoa e ngunguru nei

Aotearoa New Zealand is a
vibrant land
This is an idea that has been at the
heart of our airline since the very
beginning. Embedded in this purpose
is a promise to our people, our
customers and our community.
That promise is manaaki – taking care
further than any other airline.
This idea of care is encapsulated in
our values and is implicit in everything
we do – from taking care of each
other, our customers, our environment
and the communities we serve.
0302
Air New Zealand Annual Report 2025Air New Zealand Group

Air New Zealand at a Glance
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
* This routes is temporarily suspended.
** Air New Zealand will not resume direct flights to Seoul. The last seasonal service concluded in March 2025.
*** Auckland to Hobart is a seasonal service not currently operating.
––– Christchurch to Adelaide will be a seasonal service commencing October 2025.
Kerikeri
Whangārei
Ta u r a n g a
Hamilton
Rotorua
Ta u p ō
Gisborne
Hawke’s Bay
Palmerston North
New Plymouth
Nelson
Blenheim
Hokitika
Tīmaru
Dunedin
Invercargill
Queenstown
Christchurch
Wellington
Auckland
At Air New Zealand we provide world-class air passenger and cargo
services to, from and within New Zealand.
We operate one of the most comprehensive
domestic and regional networks in the
world, flying to 20 destinations across
Aotearoa New Zealand, offering more than
380 flights per day.
Internationally, our strategic focus and competitive advantage lie within
the Pacific Rim where our network reach extends from New Zealand
into Australia, the Pacific Islands, Asia and North America.
Alongside key global alliance partners,
including United Airlines, Singapore
Airlines, Cathay Pacific and Air China,
we connect New Zealand to more than
600 destinations worldwide.
Our network serves around 16
million passengers a year and is
operated by a fleet of 113 aircraft and
around 11,700 employees globally.
––– Air New Zealand ceased direct flights between
Invercargill and Wellington in January 2025.0504
Air New Zealand Annual Report 2025Air New Zealand Group

Performance Highlights
$6.8b
Operating revenue
Comparable to last year
$126m
Net profit after taxation
Down 14% on last year
$189m
Earnings before taxation
Down from $222 million, as the cost
environment and aircraft availability
challenges constrained the result
$83m
Dividends
Declared for the 2025 financial year
1 .1x
Net Debt to EBITDA
Compared to a target range of
1.5x to 2.5x
$235m
Increase in non-fuel operating
costs due to inflation
Up 6% on last year
$165m
¹

Adverse impact to earnings
Due to aircraft availability challenges,
net of compensation
$1 .7b
Liquidity
With a target range of $1.2 billion
to $1.5 billion
Letter from the Chair and Chief Executive Officer
Kia ora koutou,
Air New Zealand continued to move forward with purpose this year,
raising the bar for customers, navigating complexity, and laying
strong foundations for the future.
~
~
to manage disruption and deliver
continuity. Their performance is a
testament to the capability, care and
commitment that runs deep within the
Air New Zealand whānau.
Amid these challenges we remained
focused on what we could control,
adjusting schedules, leasing temporary
capacity, and prioritising investment
where it protected reliability and the
customer experience. While these
actions came at a significant financial
cost, they were the right decisions to
deliver for our customers and for the
sustainability of our business long-term.
Through it all, we’ve continued making
progress on the things that matter. In a
year where the industry was reminded
how critical safety is, we remained
uncompromising, reinforcing the
systems, culture and discipline that
underpin everything we do.
Passenger revenue was lower year-on-
year, reflecting capacity constraints
and softer demand in parts of the
network. Inflationary pressure remained
intense, reinforcing the importance of
the cost discipline we have embedded
through our Kia Mau strategy.
Despite significant engine availability
constraints, our team continued to lift
the customer experience, bringing
reimagined cabins to life, trialling
smarter digital tools, and advancing
key infrastructure and sustainability
priorities. These efforts reflect a business
focused on disciplined execution, even in
a dynamic and demanding environment.
For the 2025 financial year, Air New
Zealand reported earnings before
taxation of $189 million, and net profit
after taxation of $126 million. This result
reflects strong delivery of our Kia Mau
strategy and the underlying resilience of
our business. It was also achieved in the
face of engine availability constraints,
global supply chain pressures, softer
domestic demand, and stubbornly high
levels of inflation.
Engine availability remained our most
significant operational challenge this
year, with up to 11 aircraft grounded at
times due to global maintenance delays.
This represents around 20 percent
of our entire jet fleet. While the airline
received $129 million in compensation
from engine manufacturers, it estimates
earnings before taxation of $189 million
could have been approximately $165
million higher had the fleet operated
as intended.
Across the business, our people stepped
up. Pilots and cabin crew retrained to
support changes in fleet availability,
while our network and planning teams
adapted schedules to keep customers
moving. Behind the scenes, teams
right across the airline worked at pace
1. Please refer to the footnote in the Financial Commentary on page 19 for more information on this estimate.06
Air New Zealand Annual Report 2025
07
Air New Zealand Group

Letter from the Chair and Chief Executive Officer (continued)
Importantly, foundational investments to
lift infrastructure and digital capability
were also made. Our new engineering
hangar in Auckland is on track to open
later in the 2025 calendar year, and the
Christchurch Engine Centre expansion
is progressing well. Full rollout of digital
tools like Ops Collab, which enables
instant communication between cabin
crew, ground staff and operations
control and our automated passenger
rebooking platform are already improving
disruption recovery and on-time
performance on the Domestic network.
Looking ahead, engine maintenance
related groundings are expected to
persist through the 2026 financial year
and beyond, however small signs of
improvement are emerging. Global
maintenance capacity is beginning to
recover, and we expect this pressure to
ease materially by the end of the 2027
calendar year. The path to normalised
operations won’t be linear, but we are
heading in the right direction.
In the months ahead, we will take
delivery of two new GE-powered Boeing
787-9 aircraft, a major milestone in
our fleet renewal strategy. More than
half our Dreamliner fleet will be back in
service with fully modernised interiors,
and an additional A321neo and ATR
will support growth across the Tasman
and regional New Zealand. We are
also reinstating jet services between
Hamilton and Christchurch and
launching a new seasonal route from
Christchurch to Adelaide.
None of this progress would be possible
without our people. Their skill, adaptability
and manaaki have been the backbone of
our response this year. From engineers
managing complex groundings, to
frontline teams supporting disrupted
journeys, to those quietly improving
systems behind the scenes; the collective
commitment has been extraordinary.
Financial result
Turning to the results, Air New Zealand
has delivered earnings before taxation
of $189 million for the year. This was an
expected decline on the prior year and
was the first full year in which the airline
was impacted by engine maintenance-
related groundings.
Passenger revenue decreased two
percent to $5.9 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 $35 million
of credit breakage for unused travel
credits that are considered highly
unlikely to be redeemed.
Operating costs including fuel were
broadly flat, with the benefits of lower fuel
prices and reduced flying offset by rising
costs across the rest of the business.
Fuel prices averaged US$88 per barrel,
down from US$105 per barrel the year
prior, which alongside reduced capacity,
contributed to a $208 million reduction
in total fuel costs.
However, cost inflation continues to
weigh heavily on the business. Non-fuel
operating cost inflation of approximately
Kia ora: Neal Barclay
We were pleased
to welcome Neal
Barclay to the Air
New Zealand Board
in May 2025.
Neal brings extensive experience
in commercial leadership,
sustainability and transformation.
He has led large-scale cultural and
operational change, championed
customer-focused strategies, and
driven investment in renewable
energy, experience that closely
aligns with Air New Zealand’s
decarbonisation and customer
ambitions. He also brings strong
expertise in complex infrastructure
and digital networks. His strategic
mindset, commercial discipline
and proven ability to lead through
growth and change will be a
valuable addition to the Board.
Emily, Customer Service Agent.
Charlotte, Cabin Crew.Tui, Cargo Agent.
This year Kia Mau transformation
initiatives delivered approximately
$100 million in benefits, driven by
stronger ancillary revenue from
improved product offerings, ongoing
premium demand and digital self-
service initiatives such as live chat
and automated passenger rebooking.
Operational improvements also
translated into lower disruption
costs and a six percentage-point
improvement in on time performance
in the second half. Together these
benefits helped partially offset inflation
while laying the foundations for stronger
long-term financial performance.
With system-wide aviation costs
rising faster than the New Zealand
Consumer Price Index, and this pricing
pressure expected to continue, the
airline maintained a disciplined focus on
cost control. Targeted actions included
renegotiating supplier contracts,
reprioritising investment spend and
further embedding procurement
discipline across the business to deliver
greater value.
Despite the disruptions, we made
tangible progress on our strategic
priorities. Four fully retrofitted Boeing
787-9 aircraft have returned to service,
with more to come shortly, featuring all
new interiors and our Business Premier
Luxe™ seat. Customer feedback has
been extremely positive, particularly in
our premium cabins. We also launched
trials of digital bag tags and onboard
domestic Wi-Fi and unveiled a new
uniform that reflects the evolution of
the Air New Zealand brand.
Our loyalty programme continues to
grow strongly, with more than five
million members. New additions to
Airpoints™ vast retail partner ecosystem,
such as Sharesies and HelloFresh,
are driving strong engagement with
increased earn and burn opportunities.
Plans for a new international lounge at
Auckland Airport were also announced,
featuring expanded seating, elevated
dining options, and dedicated premium
zones for our loyal customers.
Momentum also continued on our
sustainability journey. In May, we
published our first 2030 Emissions
Guidance, outlining a projected 20 to
25 percent reduction in net emissions
from jet fuel by 2030, from a 2019
baseline. This new, annually updated
guidance replaces our former science-
based target and reflects both the
practical steps we are taking today and
the external conditions shaping our
path to net zero by 2050. Through our
Climate and Nature Fund, we committed
almost $7 million this year to support
initiatives like the Every Corner Project,
which enables charities, kura, iwi and
hapū to deliver environmental action in
their communities.
Air New Zealand Annual Report 2025
0809
Air New Zealand Group

Letter from the Chair and Chief Executive Officer (continued)Letter from the Chair and Chief Executive Officer (continued)
$235 million reflects a year-on-year
uplift of six percent. Reduced levels
of flying also constrained productivity
gains, with the airline continuing to
carry additional cost and operational
inefficiencies associated with managing
these disruptions.
Capital management and dividends
Management has made good progress
this year to move the airline closer to
our capital management targets.
This year we have declared unimputed
ordinary dividends, returned $38
million to shareholders via a share
buyback, and increased the number of
unencumbered aircraft.
As at 30 June 2025, liquidity was
$1.7 billion and net debt to EBITDA
was 1.1x, remaining below our target
range of 1.5x to 2.5x. In July, Moody’s
reaffirmed our investment-grade credit
rating of Baa1, reflecting the stability
of our financial profile despite short-
term headwinds. This means Air New
Zealand retains one of the highest
credit ratings in the global aviation
industry. Maintaining our investment
grade rating provides us with continued
access to capital at competitive rates,
giving us flexibility and resiliency.
On the basis of the airline’s 2025
financial result and balance sheet
strength, the Board has declared an
unimputed final ordinary dividend of
1.25 cents per share. This will be paid on
25 September 2025 and equates to a
66 percent payout ratio of underlying
NPAT. This brings total dividends for the
year to 2.5 cents per share.
Guidance
The outcome and timing of compensation
discussions with engine manufacturers
remains uncertain, making it challenging
for the airline to provide earnings
guidance for the full year.
In the near-term, that uncertainty,
combined with sharp recent increases
in aviation sector levies and other
charges, all set against the backdrop of
subdued domestic demand, is expected
to adversely impact the airline’s financial
performance in the first half.
As such, the airline expects earnings
before taxation for the first half of the
2026 financial year to be similar to or
less than that reported in the second half
of the 2025 financial year ($34 million).
The airline is well positioned for recovery
when the engine challenges and
economic conditions start to alleviate,
but these issues continue to have a
significant impact on current financial
performance.
Closing remarks
Air New Zealand enters the 2026
financial year clear-eyed about the
headwinds but confident in the strategy
we have in place. We remain focused on
delivering a better customer experience,
a more competitive cost base and
stronger returns for our shareholders.
The building blocks are in place, and the
momentum is real.
To our people, customers, shareholders
and partners, thank you. We are proud
of the progress made this year and
excited for what lies ahead.
Ngā mihi nui,
Haere rā: Greg Foran
Greg stepped into the role in early
2020, just before the global aviation
industry was thrown into turmoil.
What followed was one of the most
challenging chapters in global aviation
history. Through it all, Greg brought
calm, clarity and determination,
guiding Air New Zealand through the
disruption of Covid-19 and helping us
emerge not just intact, but stronger.
But his impact goes far beyond crisis
leadership. Under Greg’s watch, the
airline accelerated digital innovation,
lifted the customer experience,
progressed key infrastructure, and
embedded our Kia Mau strategy.
Greg has also led with heart, and this
has been a defining part of his legacy.
His visibility across the business,
genuine care for our people, and
commitment to culture have shaped
the way we work and the way we
serve. He has always led by example,
with humility, integrity and a sharp
focus on what matters most.
As he prepares to hand over the
baton, Greg leaves the airline in a
strong position, with a clear strategy,
a capable team, and solid momentum
behind our most important priorities.
His decision to remain through to
October ensures a smooth leadership
transition and reflects the same
commitment he has shown from
day one.
On behalf of the Board, and with deep
respect and gratitude, thank you,
Greg. You have made a lasting impact
on Air New Zealand, and we wish you
every success in what comes next.
Dame Therese Walsh
Chair, on behalf of the Board of
Air New Zealand
As our Chief Executive Officer Greg Foran
prepares to step down later this year, the
Board and I would like to acknowledge the
exceptional contribution he has made over
the past six years.
Neia, Customer Service Agent.
Michael, Strategy & Networks Specialist.
Ahmad & Don, Aircraft Engineers.
Dame Therese Walsh
28 August 2025
Greg Foran
28 August 2025
11
Air New Zealand Group
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Air New Zealand Annual Report 2025

Business Highlights
A new era of style takes flight
Earlier this year, Air New Zealand
unveiled a bold new uniform, blending
timeless design with powerful cultural
storytelling. At the heart of this project
was a landmark collaboration between
globally renowned Kiwi fashion designer
Emilia Wickstead and acclaimed Māori
artist Te Rangitu Netana.
Selected from more than 40 of New
Zealand’s top designers, Emilia stood
out for her creative vision, global
reputation, and ability to craft elegant,
modern designs that balance form and
function. Working alongside Emilia
was Te Rangitu Netana, a master of tā
moko with over 35 years of experience
and a deep commitment to cultural
storytelling through art. Te Rangitu’s
hand-drawn prints – woven into the
uniform design – are rich in Māori
symbolism and inspired by the natural
landscapes and cultural heritage of
Aotearoa New Zealand.
Unveiled in April 2025, the uniform will
be progressively rolled out across the
airline. More than something our people
wear, this uniform is a symbol of pride –
crafted with care, shaped by our culture,
and proudly Air New Zealand.
Air New Zealand’s new uniform.
Kiwi fashion designer
Emilia Wickstead and acclaimed
Māori artist Te Rangitu Netana.
Air New Zealand takes off with
new partnerships
Air New Zealand has expanded
the reach of its Airpoints™ loyalty
programme with the two new strategic
partnerships – Woolworths’ Everyday
Rewards and New Zealand-based
investment platform Sharesies. These
additions further strengthen the
programme’s ability to turn everyday
activity into tangible travel rewards.
Launched in December, the partnership
with Woolworths allows Everyday
Rewards members to convert their
grocery spend into travel benefits,
with 2,000 Everyday Rewards points
equating to 15 Airpoints Dollars™.
Airpoints™ also entered the wealth
management space for the first time
through its partnership with Sharesies.
This innovative collaboration enables
members to earn Airpoints Dollars™ as
they invest – whether they are building
a portfolio or saving for the future.
These new partnerships mark the
continued evolution of the Airpoints™
ecosystem, which now includes over
40 retail, travel and service partners
across New Zealand.
As one of New Zealand’s most loved
loyalty programmes, Airpoints™ continues
to deliver on its promise – to make
rewards more accessible, more relevant,
and more engaging than ever before.
Contributing $1.2 million to 115 local organisations to
bring their nature projects to life.
Aiming to provide a regular and transparent
assessment of progress towards our 2050 net-zero
carbon emissions target.
A numeracy and literacy programme focused on uplifting
the Mana of our People, building their capability in critical
skills and confidence they can apply at home, work and
within our community. With over 90 graduates, Project
Mana enables our People to thrive, shaping tomorrow’s
leaders through our promise of Manaakitanga.
To around 3,000 Air New Zealanders across the airline to
help solve problems faster, serve our customers better,
and reimagine how work gets done.
Including Christchurch-Adelaide as well as the
reinstatement of Hamilton- Christchurch jet services.
Named as World’s Safest Airline for 2025 by
AirlineRatings.com
Four additional aircraft have now arrived, and the airline
expects to have seven retrofitted aircraft by the end of
calendar 2025.
EveryCornerProject
Recognised
for safety
leadership
First ever nose-
to-tail retrofitted
Boeing 787
Dreamliner
back in service
Project Mana
Deployed AI
tooling
Published first
2030 emissions
guidance
Announced
new routes
Launched the
Every Corner
Project
13
Air New Zealand Group
12
Air New Zealand Annual Report 2025

Visualisations
Our Strategy
Business Highlights (continued)
Automatic passenger rebooking
(APR): Raising the bar on disruption
management
This year, Air New Zealand has
introduced a new automated rebooking
capability on its domestic network – a
key step in transforming how we support
customers to get back on track when
travel plans are disrupted.
When a domestic flight is cancelled,
affected customers are automatically
rebooked onto the next best Air New
Zealand service. There’s no need to
accept or confirm – just check in and go.
So far, the data shows that APR
resolves 86 percent of rebookings
within two minutes – something that
previously took up to 30 minutes. Since
the introduction of APR capability
on the domestic network, manual
intervention for impacted customers
has reduced from 70 percent to 18
percent, significantly easing pressure on
airport and Contact Centre teams, and
improving the customer experience.
The introduction of APR capability
is part of a broader move toward
end-to-end digital recovery, where
automation handles the basics and
our front line people focus on where
they’re needed most.
Currently available for Air New Zealand
domestic services only, this is just the
beginning of a more connected, more
resilient customer recovery experience.
Hangar 4
If you’ve travelled to Auckland Airport
recently, you might have spotted a
major new addition on the horizon.
Construction on our new state-of-the-
art engineering hangar, Hangar 4, is
progressing rapidly and remains on
track to open later this calendar year.
Once complete, Hangar 4 will hold the
title of the largest single-span timber
arch aircraft hangar in the southern
hemisphere. This impressive facility
will be large enough to accommodate
a widebody aircraft (such as our
Boeing 787-9 Dreamliner), and two
narrowbody aircraft (such as the Airbus
A321neo), at the same time. Our existing
hangars have served us well for decades,
but Hangar 4 is designed to meet
the demands of modern aviation and
beyond. It’s a long-term investment in
our operational resilience, our people,
and the continued excellence of our fleet.
Sustainability has been front and centre,
and we are targeting a 6-star Green Star
rating – the highest accreditation from
the New Zealand Green Building Council.
Auckland Airport’s Hangar 4 – artist impression
courtesy of Studio Pacific Architecture.
Sam, Aircraft Engineer.
15
Air New Zealand Group
14
Air New Zealand Annual Report 2025

Our Strategy
Profit DriversSelect 2025 AchievementsLooking ahead, opportunities on our strategic roadmap include:
Grow Domestic
• Improved operational reliability
• Reinstated Hamilton to Christchurch jet services
• Automated passenger rebooking capability launched
on Domestic
• Delivery of new Airbus A321neo for the domestic network
• Refreshed Airpoints™ proposition for small and medium-sized
businesses
• Launch of interline trial with Air Chathams
• Capacity growth into Wellington and Queenstown
Elevate
International
• First 2 retrofitted Boeing 787 aircraft back in service
with new interior product and an increased number of
premium seats¹
• Launched new service from Christchurch to Adelaide
• Completed roll out of next generation revenue
management tool across all international markets
• Grew ancillary revenue by 15 percent
• Arrival of first new Boeing 787-9 aircraft, powered by GE engines
and featuring our latest long-haul experience
• New cargo forecast and demand optimisation tool to be
rolled out
• Addition of new international markets
Lift Loyalty
• Launch of iFly platform, enabling faster rollout of
improved functionality
• Introduction of Apple Pay on the Airpoints™ Store
• New partners announced (Woolworths and Sharesies).
• Stronger Airpoints™ Store sales, up 14 percent
compared to 2024
• Special flight offers for members only (Airpoints™ Variable
Redemption)
• Roll out of new tiers and benefits
• Commencement of Auckland International Lounge upgrade
EnablersSelect 2025 AchievementsLooking ahead, opportunities on our strategic roadmap include:
Brilliant Basics
• Ops Collab tool rolled out across entire Domestic
network
• Automated passenger rebooking capability
launched on Domestic
• Migration to new inflight catering digital platform to
unlock food wastage and increase efficiency
• Transitioned to new global payments provider
• Completion of new engineering hangar at Auckland, unlocking
maintenance productivity and capability
• Development of new cargo terminal
• Continued investment in and modernisation of Ground
Service Equipment
Serious about
Sustainability
• Announced annual guidance for expected net emissions
to 2030
• Uploaded 1.7 percent of SAF as a proportion of total jet
fuel volumes
• Launched the Every Corner Project to invest in local
nature projects
• Sign long-term SAF offtake agreements to secure a portion of
the fuel required to meet the airline’s 10% SAF by 2030 target
• Implementation of internal shadow carbon price for
investment decisions
Digital Dexterity
• New contact centre livechat channel launched
• Migration of majority of applications and systems to the
cloud from servers, increasing resiliency and speed of
future software development
• Enabled around 3,000 of our people with AI tooling to
enhance productivity
• Launched Digital Academy, an internally curated training
repository our people to enhance digital skills, attend
classes and events, and improve data, and AI literacy
• Next generation kiosk design and next generation check-in
• Launch of tool control app in Engineering
• Roll-out of Ops Collab across international ports
• Cargo web portal development
Prioritising People
and Safety
• Named World Safest Airline by AirlineRatings.com
• Successfully ratified 11 bargains across various
workforces
• Won 2025 Ranstad Employer of Choice award
• Rolled-out two formal talent development programmes
• Launch emerging leaders programme across the business
• Launch ELEVATE apprenticeship programme to reduce
barriers to move into a digital career and increase
representation of Māori, Pacific peoples and women in Digital
• Launch a refreshed recognition framework
Kia Mau
The strategy that guides us is called
Kia Mau, which means “get ready and
remain steadfast”. The aviation sector
is dynamic, with externalities such as
competition, economic conditions
and supply chain uncertainty driving
the need for business agility. At the
same time, customer expectations
for seamless travel with excellent
service are valued more than ever –
and that is our opportunity. The Kia
Mau strategy outlines how we will step
change our customer proposition to
deliver sustainably stronger financial
performance over the medium- to long-
term and unlock our full potential.
The Kia Mau strategy has three drivers
of profit enhancement – growing
our domestic business, elevating
our international business and lifting
the value of our Airpoints™ loyalty
programme. Supporting these drivers
are four important enablers that guide
our efforts – Brilliant Basics, Serious
about Sustainability, Digital Dexterity,
and Prioritising People and Safety.
Grow Domestic
Our domestic business is core to Air
New Zealand’s purpose and provides
critical infrastructure to connect
New Zealand. Through decades of
investment in fuel-efficient aircraft,
modern lounges and innovative digital
products, we have sustained strong
market share of approximately 82
percent. We do not take our position
as the national airline for granted,
and continuing to grow our domestic
network while delivering a world-class
service is a key strategic priority.
Elevate International
Elevating our international business
allows us to connect New Zealand with
the world, by flying to destinations where
our core New Zealand customers want to
travel, and to markets that will enhance
New Zealand’s tourism and economic
ambitions. Profitable international
growth will leverage considerable
investment in aircraft, new product and
service offerings on-board, and strong
alliance partnerships to ensure we are
fulfilling our promise as a premium
leisure carrier. Cargo is a key component
of our international network strategy.
Lift Loyalty
Our Airpoints™ loyalty programme
is ubiquitous in New Zealand, with
over 5 million members, which
essentially means there is at least one
Airpoints™ member for every New
Zealand household. The popularity
of our programme and our member
engagement enables both increased
airline revenue and additional profit
streams from our valued partners.
To deliver the profit potential across
these three areas, we are focused on
continuously improving on four enablers:
Brilliant Basics
Brilliant operational execution is
the foundation for an exceptional
customer experience. For us, Brilliant
Basics means world-class operational
performance and service for our
customers so they will choose to fly
with Air New Zealand. To execute on
this promise, we are building new
proprietary digital tools, leveraging
predictive maintenance technology
across our fleet, developing more
self-service options for customers via
our app and implementing new ways
of working for our airport teams which
are focused on improving our on-time
performance for customers.
Serious about Sustainability
Achieving our sustainability ambitions
is critical to our long-term success,
however we know that targeting net
zero carbon emissions by 2050 will
be incredibly challenging for the
aviation industry. We are focused on
investments in Sustainable Aviation
Fuel (SAF), new generation and next
generation aircraft, high integrity
carbon credits, and operational
efficiencies to reduce our fuel burn
and waste. As an important stepping-
stone to our 2050 net zero target, we
announced 2030 Emissions Guidance
for the first time in May 2025. This
guidance will be updated on an annual
basis, enabling us to share progress on
our decarbonisation ambitions.
Digital Dexterity
We aspire to be the world’s leading
digital airline. That means investing in
innovations and digital infrastructure
that make life easier for our customers
and our people – from the moment they
start planning their trip or turn up to
work for their shift, to the moment they
exit the aircraft. One of the objectives of
our cross-functional operating model is
to embed digital capability and thinking
across all parts of Air New Zealand.
This includes a leading position on
the adoption of Artificial Intelligence
(AI) to enhance the productivity and
development of our people.
Prioritising People and Safety
Our number one priority is ensuring
that our customers get to and from their
destinations safely and that the health,
safety and wellbeing of our people is at the
forefront of every decision we make. Our
people have proven time and time again
to be the secret to our success. We have
a strong legacy of Air New Zealanders
who go the extra mile for our customers.
This is what makes our service offering
so unique and we will continue to drive a
strong culture to sustain our world-class
customer offering.
Progress to date
Progress on our Kia Mau strategy
continues to drive significant
improvements to our core capabilities.
The table to the right provides detail
on some of our achievements in the
2025 financial year and highlights key
opportunities across each profit driver.
1. Two further aircraft have arrived in the 2025 calendar year, meaning there are currently four retrofitted aircraft in service as at 28 August 2025.1716
Air New Zealand Annual Report 2025Air New Zealand Group

Financial Commentary
Our Financial
Performance
The result was significantly impacted
by elevated levels of aircraft
groundings due to global engine
maintenance requirements affecting
the airline’s Boeing 787 Dreamliner
and Airbus neo fleets. While the airline
received $129 million in compensation
from engine manufacturers, it
estimates that earnings before taxation
could have been approximately $165
million¹ higher in the absence of these
engine availability constraints.
The softer domestic economic
environment also weighed on
performance, with lower demand
particularly evident in the corporate
and government travel segments.
Revenue Performance
Operating revenue for the year was
$6.8 billion, a nominal increase on the
prior year. Excluding the impact of
foreign exchange, operating revenue
decreased 0.4 percent.
Passenger revenue decreased 1.5
percent to $5.9 billion, primarily due to
a significant reduction in flying activity
from engine availability constraints and
weaker domestic demand. Excluding
the impact of foreign exchange and
travel credit breakage, passenger
revenue decreased by 1.0 percent.
Also included within passenger
revenue is $35 million of credit
breakage for unused travel credits that
are considered highly unlikely to be
redeemed. This is compared to $90
million recognised in the prior year.
Total capacity (Available Seat
Kilometres, ASK) decreased 3.7
percent, reflecting fleet constraints
arising from ongoing global engine
maintenance delays, while demand
(Revenue Passenger Kilometres, RPK)
reduced by 1.5 percent. This resulted
in an increase in load factor to 83.4
percent, up 1.9 percentage points on
the prior year. Revenue per Available
Seat Kilometre (RASK) excluding
foreign exchange and travel credit
breakage increased 2.8 percent.
Capacity across the international long-
haul network decreased 5.3 percent, due
to engine availability constraints on the
airline’s Boeing 787 fleet. This is despite
the airline deploying three short-term
leased Boeing 777-300 aircraft during
the year. Load factors increased 2.3
percentage points to 81.7 percent. RASK
excluding foreign exchange and credit
breakage increased by 3.9 percent.
International short-haul capacity
decreased 0.8 percent, and load factors
increased 2.7 percentage points to
87.0 percent, due to a combination
of stronger passenger numbers and
reduced narrowbody flying associated
with additional engine maintenance
requirements. International short-haul
RASK excluding foreign exchange and
credit breakage increased 1.5 percent.
Domestic capacity decreased 3.2
percent, with up to six narrowbody
aircraft out of service at times
during the year due to accelerated
maintenance requirements on the
Pratt & Whitney PW1100 engines
that power the neo fleet. Passenger
demand declined more than the
capacity reduction, reflecting the
softer economic environment in New
Zealand, particularly in the Corporate
and Government sectors. Load factors
decreased 1.3 percentage points to
82.9 percent, while RASK excluding
foreign exchange and credit breakage
increased 1.8 percent.
Cargo revenue was $487 million, an
increase of 6 percent. This was largely
driven by higher load factors, particularly
on long-haul services to North America
and Asia, partially offset by capacity
constraints and softer yields due to
increased levels of competition.
Contract services, and other revenue
and income was $417 million, an
increase of 19 percent, primarily due
to compensation received from engine
manufacturers, in addition to growth
in ancillary revenue. This was partially
offset by the closure of the Gas Turbines
business in the prior year and a reduction
in third-party maintenance.
The impact of foreign exchange rate
changes on the revenue and cost base
resulted in an unfavourable foreign
exchange movement of $22 million.
After taking into account a $28 million
favourable movement in hedging,
overall foreign exchange had a net $6
million positive impact on the Group
result for the year.
Air New Zealand reported earnings before taxation of $189 million for
the 2025 financial year, compared with $222 million in the prior year.
Net profit after taxation was $126 million.
1. This estimate was calculated based on internal modelling using operational assumptions, including capacity, passenger demand, revenue yield, disruption
costs and historical performance across affected routes.
Ashleigh, First Officer.
1918
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Air New Zealand Annual Report 2025

Ownership costs were $775 million, an
increase of $26 million, or 3 percent,
driven by a decrease in interest income
from lower average cash reserves and
higher depreciation on new aircraft and
engine maintenance.
Share of Earnings of Associates
Share of earnings of associates was
$38 million, an increase of $8 million
on the prior year. This was due to
improved performance from the
Christchurch Engine Centre, with a
higher volume of heavy maintenance
work and an improvement in the
supply chain constraints that impacted
performance in the prior year.
Cash and Financial Position
Cash on hand at 30 June 2025 was
$1.4 billion, an increase of $157 million
on 30 June 2024. This reflects stronger
operating cashflows, proceeds from
the sale and leaseback of aircraft, and
the return of cash collateral as the
airline transitioned to a new global
payments provider. This was partially
offset by dividends, share buyback
acquisitions, asset purchases, and
scheduled repayments.
Liquidity at 30 June 2025 was $1.7 billion,
and includes the airline’s $250 million
revolving credit facility, which
remained undrawn.
Cashflow and Debt
Operating cashflows were $940 million,
up from $810 million the prior year.
Net debt to EBITDA increased to 1.1x
as the airline transitioned to the new
Capital Management Framework,
remaining below the airline’s target
range of 1.5x to 2.5x.
Distributions
On the basis of the airline’s balance sheet
strength and the 2025 result, the Board
has declared an unimputed final ordinary
dividend of 1.25 cents per share, payable
on 25 September 2025, equating to
66 percent payout ratio of underlying
NPAT. This brings total dividends for the
year to 2.5 cents per share.
In addition to dividends, the airline
commenced a share buyback programme
in March 2025 of up to $100 million, with
$38 million returned to shareholders in
the 2025 financial year.
Financial Commentary (continued)
Expenses
Operating expenditure increased
$18 million, or 0.3 percent to $5.8 billion,
reflecting ongoing cost inflation and fleet
inefficiencies, partly offset by reduced
fuel costs and lower flying activity as a
result of engine maintenance constraints.
Reported cost per ASK (CASK)
deteriorated 4.2 percent, as ongoing
inflationary pressures across the cost
base and significant inefficiencies
associated with engine constraints
were partially offset by lower fuel
prices and favourable foreign exchange
movements. Underlying CASK
(excluding fuel and FX) was up 7.5
percent. Adjusting for the impact of
engine-related maintenance delays,
underlying CASK would have been up
approximately 3.9 percent.
Labour costs were $1.7 billion, increasing
5 percent compared to the prior year, in
line with market. This was driven by wage
inflation across multiple work groups,
partially offset by productivity initiatives
and reduced flying activity. Full-Time
Equivalent labour (FTE) increased 0.1
percent to approximately 11,700.
Fuel costs were $1.5 billion, down
12 percent year-on-year, largely due
to a 16 percent fall in the average
Singapore jet fuel price from US$105
to US$88 per barrel, and lower
consumption from reduced flying.
This was partially offset by hedging
losses and weaker foreign exchange.
Overall, these factors delivered a
$208 million reduction in cost
compared to the prior year.
Aircraft operations, passenger
services and maintenance costs
increased $209 million, or 12 percent,
reflecting increased landing charges
across a number of domestic airports,
higher engineering costs associated
with additional leased engines, and
increased air navigation fees, partially
offset by reduced flying activity.
Sales, marketing and other expenses
decreased $33 million, or 4 percent,
reflecting lower wet lease aircraft
costs, reduced third-party support
charges and lower sales commissions
due to a reduced flying schedule. This
was partially offset by higher merchant
service fees and advertising costs.
$189m
earnings before taxation
down 1.5% on last year
$83m
dividends declared
for the 2025 financial year
$5.9b
passenger revenue
flat on last year
Ali & Shareen, Loaders.
Shazeel, Cargo Team Lead.
Neia & Romain, Customer Service Agents.
2120
Air New Zealand Annual Report 2025Air New Zealand Group

June 2024 earnings
before taxation
$222m
Passenger capacity
-$212m
- Capacity decreased by 4 percent due to reductions in aircraft availability arising from engine issues affecting the Airbus
A321neo fleet and Boeing 787 fleet.
- Domestic capacity decreased 3 percent due to the impact of the global Pratt & Whitney engine issues on the Airbus
A321neo fleet.
- International short-haul capacity decreased 0.8 percent due to a reduction in narrowbody flying partially offset by
additional deployment of leased Boeing 777 aircraft.
- International long-haul capacity decreased 5 percent due to a reduction in aircraft availability as a result of Trent 1000
engine issues.
Passenger RASK
$154m
- Overall Group Revenue per Available Seat Kilometre (RASK) excluding FX and travel credit breakage increased by
2.8 percent. Loads increased by 1.9 percentage points to 83.4 percent.
- Domestic RASK excluding FX and travel credit breakage increased by 1.8 percent with load factor decreasing 1.3
percentage points to 82.9 percent. This was driven by stronger unit revenue despite demand softness particularly from
Corporate and Government customers.
- International short-haul RASK increased by 1.5 percent excluding FX and travel credit breakage with load factor increasing
2.7 percentage points to 87.0 percent. An improvement in RASK reflected demand for events as well as the launch of new
product offerings.
- International long-haul RASK increased by 3.9 percent excluding FX and travel credit breakage with load factors increasing
2.3 percentage points to 81.7 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
-$55m
- A reduction year-on-year in breakage allowance recognised for passenger unused travel credits for which it is considered
the likelihood of those credits being utilised is remote ($35 million recognised in the current year compared to $90 million
in the comparative period).
Cargo revenue
$22m
- Load factor improvements particularly on long-haul services to North America and Asia partially offset by capacity
constraints and lower yields due to an increase in market capacity.
Contract services and
other revenue income
$64m
- The increase reflects compensation income received from manufacturers for the impact of engine shortages on the
business recognised in the current period (increase of $96 million on the comparative period) 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
-$78m
- Higher labour costs due to wage inflation offset by productivity initiatives and a reduction in operating activity.
Fuel
$237m
- Consumption decreased by 2 percent ($27 million) compared to a 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
$210 million. MOPS price decreased by 16 percent.
Aircraft operations,
passenger services and
maintenance
-$194m
- Higher costs related to landing price increases, general price inflation and additional maintenance costs associated with
leased engines and timing of checks.
Sales and marketing and
other expenses
$39m
- Reduction in short-term aircraft wet lease costs and capacity driven sales costs offset by price increases.
Ownership costs
-$24m
- Lower investment income driven by lower average cash balances (as the airline transitions to targeted liquidity levels under
the new Capital Management Framework) as well as higher depreciation due to new aircraft deliveries including additional
leased aircraft to cover engine availability issues and capitalised engine maintenance.
Net impact of foreign
exchange movements
$6m
- Higher hedging gains due to market movements partially offset by unfavourable movements on operating revenue and costs.
Share of earnings
of associates
$8m
- Increase in share of earnings from the Christchurch Engine Centre due to improvement in supply chain and increase in the
number of heavy shop visits.
June 2025 earnings
before taxation
$189m
The key changes in earnings, after isolating the impact of foreign exchange movements, are set out in the table below*:
* The numbers referred to in the Financial Commentary on the previous pages have not isolated the impact of foreign exchange.
Change in EarningsFinancial Summary
UNIT20252024
Operating revenue$m6,755 6,752
Passenger revenue $m5,8515,942
Operating expenditure$m5,8295,811
Labour$m1,7071,629
Fuel$m1,4841,692
Depreciation and
amortisation
$m727716
Earnings before taxation$m189222
Net profit after taxation$m126146
Basic earnings per sharecps3.84.3
Diluted earnings per sharecps3.74.3
Dividends declaredcps2.53.5
Dividends paid$m93276
Net cash flow from
operating activities
$m940810
Net cash flow used in
investing activities
$m119822
Cash and cash equivalents
at the end of the year
$m1,4361,279
To t a l a s s e t s$m8,7318,548
Total liabilities$m6,7856,538
Total equity$m1,9462,010
Net debt to EBITDAtimes 1.1 0.8
23
Air New Zealand Group
22
Air New Zealand Annual Report 2025

Sustainability
Our airline’s future is inseparable
from the country we fly over and the
communities we serve, and it’s this
unique interdependency and connection
that has inspired our new Sustainability
Framework: When New Zealand thrives,
we thrive too.
Built on three pillars – People, Planet,
and Guardianship – the Framework
represents a renewed commitment from
Air New Zealand, not just to continue
to address our environmental impact,
but to protect and uplift the places and
people that make our work possible.
It acknowledges that sustainability is
integral to who we are, how we operate,
and where we’re going.
People He tāngata – reflects that we
are a people business, committed to
our team, our customers, our supply
chain, and the communities we connect
and serve.
Planet Te Ta i a o – guides our actions
to meet our 2050 net zero carbon
emissions target, care for nature, and
support the circular economy. From the
fleet choices we make to waste reduction,
we are aiming for meaningful change.
Guardianship Kaitiakitanga –
recognises our responsibility to our
airline, our investors and Aotearoa New
Zealand as a whole; to ensure Air New
Zealand, and the communities, trade
and tourism sectors we support, remain
strong well beyond the time we are in
our roles as Air New Zealanders.
During the 2025 financial year, we were
pleased to publish our first annual 2030
Emissions Guidance. Alongside our
second Climate Statement, which was
released to the market today, these
documents provide a comprehensive
overview of our climate-related risks
and an annually updated outlook of our
emissions trajectory. In the following
pages, you will also read about our
progress with other priorities, and focus
areas referred to in our new Framework.
Ngā mihi nui
Kiri Hannifin
Chief Sustainability and Corporate
Affairs Officer
Our Sustainability
Update
Tēnā koutou At the heart of our airline lies a
simple proposition: to connect New Zealanders
to each other and the world.
Our reporting approach
Data and commentary contained
in this sustainability update relates
to the financial year ended 30 June
2025, and reflects a snapshot of
Air New Zealand’s sustainability work.
Air New Zealand’s organisational
boundary for sustainability reporting
encompasses the companies listed
on page 3 of Air New Zealand’s
2025 Greenhouse Gas Emissions
Inventory Report. The following
supporting information can be found
on our website: Climate Statement;
Greenhouse Gas Emissions Inventory
Report; 2030 Emissions Guidance;
Workforce Profile; Gender Pay Report;
and Metrics Table.
When New Zealand thrives,
we thrive too
Guardianship
We are the caretakers of Air New Zealand
for future generations.
We help develop Aotearoa New Zealand
as a sustainable visitor destination,
benefitting visitors, communities, the
environment and the economy.
Ki te kotahi te kākaho ka whati, ki te kāpuia e kore e whati
When we stand alone we are vulnerable, but together we are unbreakable
Kaitiakitanga
Planet
Te Taiao
We are working towards net zero carbon
emissions by 2050.
We aim to design, buy and use
products and resources that support
the circular economy, and actively
work to reduce waste.
We help restore and regenerate nature
in Aotearoa New Zealand.
People
He tāngata
We care for our people by keeping
them safe, preparing for the future,
and supporting all our teams to thrive.
We enrich the lives of our customers
and are a positive part of the diverse
communities we connect and serve.
We are responsible for our supply chain
and promote positive impact and change.
2524
Air New Zealand Annual Report 2025Air New Zealand Group

People He tāngata
We care for our people by keeping them safe, preparing for the future,
and supporting all our teams to thrive.
Air New Zealand is proud to have been
awarded New Zealand’s most attractive
employer in 2025 by Randstad for a
third year running. This recognition
reflects the priority we place on culture,
engagement and inclusivity. Air New
Zealand’s engagement index score as of
June 2025 was 69¹ (compared with the
Glint Global Top 25 percent benchmark
of 78). This is one point down from our
2024 score of 70. Our “I feel a sense of
belonging” measure is currently at 66,
against our target of 69².
Across the airline we see a strong sense
of belonging at a team level, and are
implementing initiatives to increase
engagement and connection between
teams across the business. These
include refreshing our approach to how
we recognise our people, making sure
we have strong and well-communicated
action plans following feedback,
providing our leaders and employees
with development opportunities, and
Re:Connect (our initiative to drive
more face to face interaction and time
together across our workplaces).
For an update on how the airline is
tracking with its Diversity, Equity and
Inclusion Strategy, please see page 40
of this Annual Report.
A continued focus on wellbeing
Our ‘Mentally Healthy Work’ programme
has continued this year, primarily
focused on proactively managing
psychosocial risk. This has included
risk assessments of specific business
areas to identify, assess and manage the
organisational, social and environmental
factors that may impact our people’s
mental health and wellbeing. Led by
a dedicated team, Air New Zealand
continues to provide support to our
team members through a variety of tools
and resources (such as the Employee
Assistance Programme, Peer Support
and a Wellbeing Hub), and we are also
focused on increasing the wellbeing
leadership capability and competency
of our leaders through a variety of
workshops and training formats.
1. This score is out of 100 and based on the responses to two questions in our Employee Survey which is run three times a year on
the Glint platform – ‘How happy are you working at Air New Zealand’ and ‘I would recommend Air New Zealand as a great place to
work’. Responses are measured on a 5-point scale.
2. This score is out of 100 and responses are measured on a 5-point scale. The target was refined in the 2025 financial year to
reflect current progress, ensuring it remains both achievable and aspirational.
Embracing inclusivity
In December 2024, Air New Zealand
was proud to be named the world’s
most disability-friendly airline by
Condé Nast Traveller, and in February
2025, we were invited to join The
Valuable 500, a global movement
uniting 500 of the world’s most
influential businesses to drive
disability inclusion and accessibility.
In June 2025, we hosted our first
flight familiarisation experience
for neurodivergent children and
their families in partnership with
Autism New Zealand and Acorn
Neurodiversity. Using Air New
Zealand’s training facility, and in
conjunction with New Zealand Civil
Aviation – Aviation Security, the
experience replicated key stages of
the air travel process including check-
in, security screening, boarding, and
in-cabin procedures. This initiative is
part of Air New Zealand’s commitment
to making travel welcoming and
accessible for everyone.
We enrich the lives of our customers and are a positive part of the
diverse communities we connect and serve.
Every Corner Project
From Te Kao in the Far North to Tuatapere
in the South, grassroots environmental
champions across Aotearoa New Zealand
received a boost in June 2025 through
Air New Zealand’s Every Corner Project
funding. More than 600 registered
charities, schools/kura, and hapū
applied, with 115 organisations selected
to receive a share of $1.2 million of funding
to help bring their nature projects to life.
Projects include native planting, wetland
restoration, establishing rainwater
harvesting systems, building community
compost hubs, and installing predator
control networks to protect threatened
plant and animal species.
Give Back Pack
This year Air New Zealand launched
the Give Back Pack, bringing together a
group of Air New Zealanders who want
to contribute to the local environment
and communities we connect. Key
activities included planting 1,400 native
trees for Trees That Count near the
Papakura stream in South Auckland,
collecting kina to support the Waiheke
Marine Project’s work to rebalance the
ecosystem at Enclosure Bay (which
were then given to the local community
and marae), and providing school
supplies to Women’s Refuge through
our “Give a Backpack” campaign.
Flying our Little Stars
In August 2024, fifty Koru Care children
experienced a dream flight on an Air
New Zealand Boeing 787-9 Dreamliner,
soaring over the breathtaking scenery
of the lower South Island. Before
take-off, the Little Stars were treated
to a globe-trotting celebration at
Christchurch Airport, which took them
to Sydney, Fiji, Tokyo and New York.
Koru Care is a charity that provides
memorable experiences for children
with serious medical conditions or
disabilities. Air New Zealand has
partnered with Koru Care for more than
40 years, helping dreams take flight.
Sustainability (continued)
Mangōpare pilot cadets all underway
with training
The Mangōpare Pilot Cadetship is
designed to help Air New Zealand
continue to meet future demand for pilots
by inspiring people from all backgrounds
to pursue a career as a pilot. With the
airline funding most training costs, our
cadetship helps reduce financial barriers
and accelerate training. Currently run
in Arizona and Dubai over a 14-month
programme, all five Mangōpare cohorts
have now commenced training, and we
expect the first group to be joining Air
New Zealand by Christmas.
Neurodivergent
familiarisation.
Koru Care flight.
Native tree planting.
Kina dive day.
Freemans Bay School composting project.
Lunar New Year.
Celebrating our diversity through events
and supporting inclusion through
conversations about topics such as
menopause and neurodiversity.
2726
Air New Zealand Annual Report 2025Air New Zealand Group

Sustainability (continued)
This year’s three Ka Rere participants are:
Kaputī Studio, a wāhine Māori-led
collaborative project producing
a range of locally blended teas
and infusions;
The Sustainable Food Co., an all-
female owned and operated social
enterprise catering company; and
Stronghold Group, a Māori and
Pasifika-owned construction company.
Each received mentoring from across
the airline as well as a $20,000
cash grant to invest in and grow
their business.
Additionally, two of the three
businesses from the 2024 Ka Rere
cohort have since gone on to launch
products on Air New Zealand’s
Airpoints™ Store.
Supplier diversity and Ka Rere
mentoring programme
Air New Zealand believes that a diverse
supplier base is good for business. Global
supply chains remain strained and having
optionality, particularly in Aotearoa New
Zealand, is critical for resilience, and
to reflect the communities we serve.
A cross-functional supplier diversity
working group helps guide inclusive
sourcing across our operations, while the
Ka Rere Diverse Business Accelerator
programme provides participants with
business coaching and procurement
readiness support. These initiatives are
delivering measurable impact.
20252024 (revised)⁴
Diverse Supplier³
Spend ($)
19
million
17
million
Diverse Supplier
Engagements
68
suppliers
44
suppliers
Piloting global sustainable
procurement standards
Sustainable procurement is one of the
most powerful levers to drive positive
social and environmental impact in
supply chains. Air New Zealand has
joined ten leading carriers in a global
pilot to shape the International Air
Transport Association’s (IATA) new
Sustainable Procurement Certification
Standard, grounded in ISO 20400:2017.
When launched, the certification will
give aviation a consistent, measurable
pathway to sustainable procurement.
Our intention is for Air New Zealand to
be assessed against the new standard
in the 2026 financial year.
Circular economy principles part
of our procurement
This year, we have focused on
embedding circular principles into our
supply chain, reducing waste in the
system and finding opportunities to
reuse or repurpose materials. We have
also introduced a circular economy
clause in our supply agreements to
engage suppliers early and implement
solutions that reduce costs, lower
emissions, and improve resilience
against resource volatility.
In the 2025 financial year,
we updated our Supplier
Code of Conduct to provide
greater focus on modern
slavery and responsible
sourcing due diligence, and
released our 2024 Modern
Slavery Statement.
Planet Te Taiao
We are working towards net zero carbon emissions by 2050.
3. Air New Zealand currently defines diverse suppliers as Māori and Pasifika-owned businesses, and social enterprises.
4. Includes existing suppliers as at 30 June 2024 retrospectively identified as meeting diverse supplier criteria since the 2024
Annual Report was released.
Ka Rere participants for 2025.
We are responsible for our supply chain and promote positive
impact and change.
2025 Climate Statement
This year, we published our second
Climate Statement, as required by the
Aotearoa New Zealand Climate Standards
(NZ CS), which provides information on
the material risks that climate change
presents for Air New Zealand across
the short-, medium-, and long-term.
This includes how risks are governed,
our risk management processes, how
climate change impacts the airline today,
and how it may impact us in the future.
Climate-related metrics and targets
relevant to the airline are also provided.
For our full disclosure, please refer to
the 2025 Climate Statement.
This section should be read
in conjunction with that
Statement.
Snapshot of 2025 emissions
Like all airlines, Air New Zealand’s
business model currently relies on
fossil jet fuel, so we are a large emitter
of greenhouse gases, including carbon
dioxide (CO₂) and other equivalent gases
(CO₂-e). For the 2025 financial year,
Air New Zealand’s total CO₂-e emissions
were 4.2 million tonnes. This was a
decrease from 4.3 million tonnes
(or 1.1 percent) in the 2024 financial year.
International air travel emissions
reduced in the 2025 financial year as a
result of the increased use of SAF and
a number of grounded aircraft due to
engine availability issues. Domestic air
travel emissions also decreased, largely
due to reducing demand in corporate
and government travel.
Emissions snapshot 2025
Scope 3
25%
1.07 million tCO₂-e
63% is from jet fuel
25% is from purchased
goods and services
9% is from capital assets
3% is from remaining
categories
Scope 2
0%
0.003 million tCO₂-e
Scope 1
75%
3.16 million tCO₂e
99.8% is from jet fuel
91%
of Air New Zealand’s
total GHG emissions
relate to jet fuel
Modern Slavery
Statement 2024
This report is made pursuant to the Australian Commonwealth’s Modern Slavery Act 2018 (Cth), the United Kingdom’s Modern Slavery Act 2015,
and Canada’s Fighting Against Forced Labour and Child Labour in Supply Chains Act for the reporting period 1 July 2023 – 30 June 2024.
Version 2.
Our Supplier

Code of Conduct
Updated September 2024

Version 2.
28
Air New Zealand Annual Report 2025
29
Air New Zealand Group

SAF is currently estimated
to deliver around 40-67
percent of the emissions
reduction in 2050.
Carbon Credits (including
CORSIA to 2035) are
currently estimated to deliver
around 11-48 percent of the
emissions reduction in 2050.
Optimising Fleet and Network
(including NGA adoption) is
currently estimated to deliver
around 10-19 percent of the
emissions reduction in 2050.
Million tCO₂
Ye a r
7
6
5
4
3
2
1
0
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
Operational Efficiency is
currently estimated to deliver
around 2 percent of the
emissions reduction in 2050.
TARGET NET ZERO
CARBON EMISSIONS
BY 2050
NET CARBON
EMISSIONS
POTENTIAL
BUSINESS AS USUAL
CARBON EMISSIONS
Note: the actual combination of lever
contributions may vary.
2019 EMISSIONS
Sustainability (continued)
Our Transition Plan to net zero carbon
emissions by 2050
We are targeting net zero carbon
emissions by 2050 and have a Transition
Plan to reduce net emissions over time.
Aviation is a hard-to-abate sector due
to factors such as limited availability
of alternative fuels and slower than
anticipated progress in engine and
aircraft technology. Achieving net zero
will require substantial industry and
technology change, investment, and
policy support. While some actions are
within Air New Zealand’s control, most
rely on third parties and governments
to take material actions in the short-
and medium-term. Our Transition Plan
includes short-term (2025 – 2030) and
long-term (2031 – 2050) components,
reflecting the greater degree of visibility
the airline has over the levers available
to address emissions in the short-term.
Short-term: 2030 Emissions Guidance⁵
Air New Zealand published its first 2030
Emissions Guidance on 1 May 2025,
with “Well-to-Wake” net greenhouse
gas emissions expected to reduce by
20 to 25 percent by 2030, compared
with a 2019 baseline. Well-to-Wake
emissions are the total emissions from
jet fuel, including fuel production,
distribution and combustion in flight.
The 2030 Emissions Guidance is on a
net emissions reduction basis, rather
than an intensity basis, to more closely
align with our 2050 net zero carbon
emissions target.
In the 2025 financial year, Well-to-Wake
emissions from jet fuel accounted
for 91 percent of Air New Zealand’s
4.2 million tonnes of greenhouse gas
emissions. The 2030
Emissions Guidance will
be updated annually in the
airline’s Climate Statement.
Operational Efficiency
SAFOptimising Fleet and Network (including NGA adoption)
Carbon credits (including CORSIA to 2035)
5. The 2030 Emissions Guidance and the illustrative roadmap are based on different modelling and use a different scope of
emissions. For the 2030 Emissions Guidance, modelling was developed internally and covers a larger proportion of Air New
Zealand’s emissions from jet fuel; the illustrative roadmap was developed with reference to the IATA 2050 net zero target scope
and contains a greater reliance on external assumptions. In addition, for the 2030 Emissions Guidance, the scope of CO₂-e
emissions includes methane and nitrous oxide, whereas the scope of the illustrative roadmap is limited to CO₂ emissions only.
Air New Zealand’s illustrative roadmap for 2031-2050
Long-term: Air New Zealand’s illustrative
roadmap to the 2050 net zero carbon
emissions target (2050 Target)⁵
Beyond 2030, the airline’s long-term
roadmap from 2031 to 2050 illustrates
a central case scenario for how Air New
Zealand could potentially transition to
meet its 2050 Target. The central case
indicates the airline’s view of a potential
path of decarbonisation at a point in
time, among many possible pathways.
It is accompanied by ‘low’ (pessimistic)
and ‘high’ (optimistic) pathways, which
are not shown graphically but are
indicated by the number ranges in the
boxes to the right of the illustrative
roadmap graph.
This illustrative roadmap (see page 31)
should be read in conjunction with the
further information set out in the Strategy
section of the Climate Statement on
pages 29-30. It is based on our current
understanding of the tools available to
decarbonise, but is not intended as a
fixed prediction. The path may change
as technologies, policies, and market
conditions evolve. Air New Zealand intends
to update the roadmap annually in its
Climate Statement to reflect evolving
data, developments, and assumptions.
Sustainable Aviation Fuel (SAF)
The access to and price of SAF is a
material climate-related transition risk
noted in Air New Zealand’s Climate
Statement. In the 2025 financial year,
we increased SAF to 1.7 percent of total
jet fuel usage, up from 0.4 percent of
total jet fuel in financial year 2024 and
0.1 percent the year before. While still
small volumes, this year we achieved
emissions reductions of 48,387 tonnes
CO₂-e via SAF. We also formalised a
SAF Sourcing Position Statement this
year and are trialling options for SAF
certificate sales.
Fleet and network update
In the 2025 financial year, we added a
short-term lease of one Boeing 777-
300ER to cover for engine-related
Aircraft On Ground (AOG) and new
aircraft delays, as well as one leased
Airbus A321neo to enable growth on
the short-haul network. We also added
one owned ATR 72-600 to the fleet. The
planned replacement and retirement
of older aircraft with newer, more
fuel efficient aircraft is contingent on
manufacturers being able to deliver
Air New Zealand’s new conventional
aircraft within contracted timeframes.
This is an ongoing risk for us and for the
airline industry more generally given
current supply chain issues.
This year, we determined that the
contribution of Next Generation Aircraft
(NGA) to our Transition Plan and 2050
Target will be smaller than previously
expected. This reflects production
challenges across the global aviation
industry and our reliance on third
parties for these aircraft to become
a meaningful decarbonisation lever
before 2050. For example, during the
2025 financial year, Airbus announced
the target date for launching their
ZEROe hydrogen-powered aircraft had
changed from “by 2035” to “the second
half of the 2030s.”
Carbon credits
Air New Zealand expects to have
emissions remaining in 2050 that cannot
be addressed through fleet upgrades,
operational efficiency improvements or
SAF due to technology, cost or feasibility
constraints. Using carbon credits to
address these residual emissions is an
important part of achieving our 2050
net zero target. In the 2025 financial
year, we have assessed that the amount
of carbon credits we expect to require
in 2050 will be larger than we had
previously forecast in our Transition
Plan because the contribution of other
decarbonisation levers, such as fleet and
network, is expected to be lower.
New Zealand’s voluntary carbon
market is nascent. To support market
development, in the 2025 financial year,
we have developed a Voluntary Nature-
Based Removals Position Statement to
outline Air New Zealand’s commitment
to purchase high-integrity, voluntary
nature-based carbon removal credits,
and in May 2025 signed a letter of intent
with one potential supplier, with a second
letter in progress.
Air New Zealand plans to test NGA
in two phases, with a technical
demonstrator and a commercial
demonstrator aircraft. The technical
demonstrator is expected to fly from
October 2025 through to the end
of January 2026. The commercial
demonstrator is currently expected
to fly a short regional route in the
future. Both have already highlighted
some of the challenges associated
with NGA, with production delays
impacting intended delivery dates.
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Air New Zealand Group

Sustainability (continued)
Cargo champions
Our Cargo team sent 22.4 tonnes less
waste to landfill this year compared
to the year before, a 25.6 percent
reduction. This was achieved through a
range of initiatives including diverting
heavy materials such as wood from
landfill, reusing packaging materials
where possible, and updating onsite
waste infrastructure to make recycling
easier. Other key initiatives have
included the removal of single use cups
and introducing compost services.
We aim to design, buy and use products and resources that support
the circular economy, and actively work to reduce waste.
This year, Air New Zealand sent 1,041
tonnes of waste to landfill (a decrease of
75 tonnes from last year) and diverted
47 percent of total waste from landfill⁶.
• 748 tonnes of waste recycled,
compared to 842 tonnes in the
2024 financial year
• 176 tonnes of waste composted,
compared to 169 tonnes in the
2024 financial year
• 1,041 tonnes of waste sent to
landfill, compared to 1,116 tonnes
in the 2024 financial year
While we have made meaningful
progress in some areas, the year
has also seen delays in key circular
economy projects due to supply chain
and resource challenges.
Taking action on food waste
A focus for the airline this year has been
reducing food waste and establishing
waste baselines, with audits revealing
that food waste accounts for over
50 percent of landfill waste from our
domestic lounges. In response our
Lounge teams have implemented
solutions to divert food waste from
landfill. Where waste is unavoidable,
we’re working to ensure it is either
consumed or composted, including
partnering with food rescue groups to
redirect surplus edible food
to local communities.
We also conducted food waste audits
on four key international routes this
year to identify further opportunities to
reduce surplus food. The audit findings
have prompted a review and expansion
of the Project Green reinjection
programme, menu reviews and the
creation of a baseline to guide future
inflight food waste targets.
View the 2025 Metrics
Table for an update on the
airline’s waste targets
and progress.
Anything but uniform
This year, Air New Zealand revealed
its new uniform, which includes more
sustainable materials such as organic
cotton for men’s shirts, a recycled
polyester and wool blend for the
suiting, and recycled polyester for
women’s dresses and shirts. We will
also be partnering with a supplier to
recycle uniforms as they reach end of
life, into reusable signage, acoustic
panels, and packaging – replacing
single-use, hard-to-recycle materials.
In addition, with our current uniforms
soon to be phased out, we are exploring
onshore and offshore recycling options
and looking for ways to strengthen
responsible supply chains. This
marks a step forward in reducing the
environmental impact of our uniform,
with further innovations to come as
they become viable.
6. This total includes all the airline’s domestic ground sites and airports serviced by our main waste provider. We also
include data from our Auckland and Christchurch lounges which has been provided by our cleaning provider. It excludes
hazardous waste, international inflight biosecurity waste, building and construction waste, and other Air New Zealand
waste managed by airport companies.
Air New Zealand’s new uniform.
This year, Air New Zealand started
developing a Taiao (Nature) Strategy,
with assistance from Nature Positive
and a Māori Advisory Panel to advise on
incorporating a te ao Māori world view.
A key aim of our Taiao Strategy is to
protect and restore taonga in Aotearoa
New Zealand, including people, places,
species and cultural heritage. The first
part of the strategy will build on existing
workstreams to address the airline’s most
material nature-related opportunities
and risks by reducing impacts and
dependencies upon nature. These most
material nature-related risks have been
added to the Sustainability and Corporate
Affairs Divisional Risk Register.
Climate and Nature Fund
Air New Zealand’s Climate and Nature
Fund is funded by an internal carbon
charge on selected ultra long-haul
flights, plus any profits from our loyalty
partnership with Z Energy. Now in its
second year, the Fund is ringfenced for
sustainability efforts across four areas:
mitigating the impacts of our emissions,
increasing renewable energy, expanding
the supply of SAF, and enhancing internal
sustainability outcomes. In the 2025
financial year, we are pleased to have
funded initiatives to the value of $6.7
million including the Every Corner Project,
Department of Conservation (DOC)
biodiversity projects, SAF domestic
feasibility studies, a peatland restoration
project with The Nature Conservancy
- Aotearoa New Zealand, waste audits,
and an ongoing investment in the United
Airlines Ventures Sustainable Flight Fund.
Spotlight on solar
This year, we installed 1,200 solar panels
at our Auckland Campus premises. The
550 kVA AC solar array system was
funded by the Climate and Nature Fund
and is estimated to produce around
894.5 MWh per year – equivalent to
powering approximately 90-100 average
New Zealand homes each year. While the
amount of solar energy generated from
the solar panels is small in comparison
with our much bigger challenges to
decarbonise, it is a step we can take now
to reduce our impact, and one which is
in our direct control.
Department of Conservation
Our partnership with DOC continues
to support biodiversity projects
with 40,419 hectares of sustained
predator control alongside five Great
Walks. We have also launched a new
three-year project to support DOC’s
Bats Beyond Borders programme,
advancing research and conservation
management of the threatened native
long-tailed bats (pekapeka).
Through our support of DOC’s
Conservation Dogs Programme, we
enabled the full certification of 27 pest
and species detection dog handler
teams as well as interim certification
of 19 dog handler teams who were
supported by 63 mentoring days.
We also enabled 508 field days for
undertaking biosecurity checks,
incursion responses, surveillance and
species detection work; and 29 advocacy
events. In addition, we have flown 363
threatened species and conservation
dogs on our network.
Customer contributions
In the 2025 financial year, customers
opting in to our Voluntary Emissions
Contribution Programme (VECP)
purchased 43,673 tonnes of carbon
credits⁷, and contributed $684,000 to
Trees That Count to enable the planting
of 85,474 native trees, supporting
biodiversity outcomes across Aotearoa
New Zealand. Of bookings made through
online storefronts where the VECP is
available, 2.6 percent contributed to the
programme, a decrease of 0.8 percent
on the year prior.
Corporate, government, and cargo
customers can use our emissions
reporting platforms which provide
visibility of air travel emissions estimates
including by route and seat class where
applicable. The number of customers on
the platforms increased to 340 this year,
up 105 customers on the year prior.
The Mission: Pawssible campaign to raise awareness about the CDP’s critical work.
7. All of these credits have been retired on behalf of
Air New Zealand.
We help restore and regenerate nature in Aotearoa New Zealand.
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Air New Zealand Group

Our Corporate
Governance Statement
Sustainability (continued)
We are the caretakers
of Air New Zealand for
future generations.
Governance
At Air New Zealand, governance of
sustainability covers environmental and
social matters. It is a broader concept
than climate-related matters alone.
Information about how climate-related
risks and opportunities are
governed is outlined in our
2025 Climate Statement,
which can be found here.
Board of Directors
The Air New Zealand Board of Directors
has overarching responsibility for
sustainability, including climate-related
matters. In the 2025 financial year, the
Board engaged on key topics such
as the Climate Statement, our 2030
Emissions Guidance, Greenhouse Gas
Emissions Inventory Report, Transition
Plan, carbon regulatory compliance,
Taiao (Nature) Strategy, and our new
Sustainability Framework.
Executive team
The Executive team is responsible
for developing and implementing the
airline’s sustainability strategy. The Chief
Sustainability and Corporate Affairs
Officer (CSCAO) leads the Sustainability
team, who provide expertise and
advice to the airline about sustainability
matters. The CSCAO reports directly to
the Chief Executive Officer.
Sustainability Advisory Panel
The airline’s independent Sustainability
Advisory Panel meets formally twice a
year to provide advice to the airline in
relation to sustainability developments
and initiatives.
We help develop Aotearoa New Zealand as
a sustainable visitor destination, benefitting
visitors, communities, the environment and
the economy.
Done well, travel enriches both the
country and the traveller. It can make
the world smaller and remind us of our
shared humanity. This year, we have
continued to see tourism momentum,
however, we are also conscious of
the need to be purposeful as we look
to tourism’s future. Like most New
Zealanders, Air New Zealand wants
to support tourism that grows our
economy, enriches communities across
Aotearoa New Zealand, and safeguards
our natural environment.
Championing a thoughtful approach
We know from research that New
Zealanders continue to value the
economic and social contribution
that tourism makes, however, there is
growing public awareness of the need
to manage the impacts of tourism.
We believe that tourism should not
only support economic growth but
also uplift communities and protect
the unique natural heritage we have
here. Air New Zealand continues to
collaborate with the broader tourism
sector to advocate for and support
tourism for the long-term.
Our support for the Tiaki Promise remains
a cornerstone of our commitment to
a sustainable tourism sector. Tiaki
encourages everyone who lives and
travels within Aotearoa New Zealand to
act as guardians of the land, respecting
its people, culture, and environment. In
partnership with Te Kāhui Tautiaki, the
governing body of Tiaki, we have worked
to evolve the Tiaki proposition and
expand its reach through promotion and
engagement with visitors and the travel
industry via our channels. This initiative
aims to deepen local and international
visitor understanding of Tiaki and inspire
long-term behaviour.
Sharing the land
Our regional communities are vitally
important to our tourism story and Air
New Zealand is proud to support the 20
ports we fly to domestically. Highlights
from this year include partnership
campaigns with Regional Tourism
Organisations (RTOs) to showcase
the diverse range of experiences in
regions and encourage visitation,
including partnership activity promoting
Christchurch, Northland, Hawke’s Bay,
Nelson, Auckland and Wellington. We
also partnered with Southern Way
(encompassing eight lower South Island
RTOs), Invercargill, Queenstown and
Dunedin airports to market multi-stop
travel to the lower South Island.
Tiaki – a promise to protect Aotearoa New Zealand.
Bluff Oyster and Food Festival.
Guardianship Kaitiakitanga
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Air New Zealand Annual Report 2025

Effective corporate governance is at the heart of our agenda. The Board considers its governance practices to be consistent with the principles of the NZX
Corporate Governance Code dated 31 January 2025.
This Corporate Governance Statement was approved by the Board on 28 August 2025.
Ethical Standards
Air New Zealand is committed to upholding the highest ethical standards across all aspects of its global operations. The Board places strong emphasis
on honesty, integrity and transparency, recognising these values as fundamental to effective corporate governance. This is reflected in the Company’s
Code of Conduct and Ethics (Code), which sets out clear standards of conduct for all employees including Directors. The Code requires compliance with all
applicable laws and regulations and promotes a culture of transparency and accountability throughout the organisation. The Code is reviewed periodically
and approved by the Board to ensure its ongoing relevance and effectiveness. All new employees complete training on the Code as part of their onboarding,
and all staff are required to complete an annual refresher to reinforce and embed these standards.
Our Governance Structure
The Board
The Board is responsible for guiding the corporate strategy and direction of Air New Zealand and has overall responsibility for decision making.
Corporate Governance Statement
Board / Committee meeting attendance¹ – 1 July 2024 to 30 June 2025
BoardAudit & Risk Committee
People, Remuneration &
Diversity Committee
Health, Safety &
Security Committee
Dame Therese Walsh10/104/45/54/4
Claudia Batten10/104/42/2
Neal Barclay²2/21/11/1
Dean Bracewell10/105/54/4
Laurissa Cooney10/104/45/5
Larry De Shon10/104/4
Alison Gerry10/104/44/4
Paul Goulter²2/22/21/2
1. Attendance is the number of meetings attended/number of meetings for which the Director was a member.
2. Paul Goulter retired from the Board on 26 September 2024 and Neal Barclay joined the Board on 1 May 2025.
Current Directors
Note: Only principal management relationships are depicted.
Digital Integrity
Ensures that architecture, data,
cybersecurity and engineering best
practices are integrated across the
airline, including monitoring and treating
digital enterprise risks.
Sustainability
Identifies and manages climate-related
risks and opportunities, and
climate-related disclosures.
Finance
Manages financial risk, external
financial reporting and relationships
with external auditors and the Office
of the Auditor-General.
Other management committees
and functions
Group Safety Review
Board (GSRB)
Monitors effectiveness of
Safety Management Systems,
including people safety and air
worthiness risks, and associated
regulatory compliance.
Group Internal Audit
Provides assurance through independent challenge, verification and review of risk management and identifies opportunities for improvement.
Enterprise Risk
Analyses and consolidates business
unit risk information to prepare Group
Risk Profile.
Facilitates implementation of Enterprise
Risk Management Framework.
Group Insurance
Ensures appropriate policies are in place
to protect the airline and its assets from
damage or loss.
Cyber
Implements processes, systems and
tools to identify and protect critical
systems, assets and information from
threats as well as planning for business
continuity and recovery.
Data Privacy
Identifies and manages data privacy
risks and drives best practice across
business initiatives.
Audit & Risk Committee (ARC)
Advises and assists the Board in
discharging its responsibilities for
financial reporting, compliance and
risk management at Air New Zealand.
Oversees the risk management
framework and internal and external
audit functions, including oversight of
major strategic risks such as climate
and cybersecurity.
Chair: Alison Gerry.
Neal Barclay, Claudia Batten,
Laurissa Cooney, Dame Therese Walsh
People, Remuneration &
Diversity Committee (PRDC)
Advises and assists the Board
in discharging its governance
responsibilities in relation to oversight of
Air New Zealand’s People Strategy.
Chair: Laurissa Cooney.
Dean Bracewell, Claudia Batten,
Dame Therese Walsh
Health, Safety & Security
Committee (HSSC)
Advises and assists the Board in
discharging its responsibilities In
relation to health, safety and security
matters arising from Air New Zealand’s
operations, including oversight of
associated risks.
Chair: Dean Bracewell.
Neal Barclay, Larry De Shon,
Alison Gerry, Dame Therese Walsh
External Sustainability
Advisory Panel
External advisory panel
providing advice to the
Board and Management on
Sustainability matters.
External
Audit
Head of
Internal Audit
Reports functionally
to the Audit & Risk
Committee and
administratively
to the Chief Safety
& Risk Officer.
Disclosure Committee
Facilitates the provision of
timely and appropriate market
disclosure in accordance with the
Continuous Disclosure Policy.
Chief Executive
Officer
Delegated responsibility
for implementing
the Board’s strategy
and for managing
the operations.
Chief Financial
Officer
Responsible for
managing the
financial affairs of
Air New Zealand.
General Counsel
& Company
Secretary
Secretary to the Board
and is directly accountable
to the Board, through the
Chair, on all matters to
do with the proper
functioning of the Board.
Details of directors’ skills and experience can be found at:
airnewzealand.co.nz/air-new-zealand-board
Dame Therese Walsh
DNZM, BCA, FCA
Independent Non-Executive Director
Appointed 1 May 2016
Chair
Claudia Batten
LLB(Hons), BCA
Independent Non-Executive Director
Appointed 28 October 2021
Dean Bracewell
Independent Non-Executive Director
Appointed 20 April 2020
Health, Safety & Security Committee Chair
Laurissa Cooney
BMS(Hons), FCA, CMInstD
Independent Non-Executive Director
Appointed 1 October 2019
People, Remuneration & Diversity
Committee Chair
Alison Gerry
BMS(Hons), MAppFin
Independent Non-Executive Director
Appointed 28 October 2021
Audit & Risk Committee Chair
Neal Barclay
BCA
Independent Non-Executive Director
Appointed 1 May 2025
Larry De Shon
BA Communications, BA Sociology
Independent Non-Executive Director
Appointed 20 April 2020
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