Air New Zealand strategy reset: Te Pae Hou - Our Future

Strategic Review29 June 2026AIRIndustrials

Stock exchange listings: New Zealand (NZX: AIR) / Australia (ASX: AIZ) / ADR (OTC: ANZLY)

Air New Zealand postal address: Private Bag 92007, Auckland, 1142, New Zealand
Investor Relations email: investor@airnz.co.nz
Investor website: www.airnewzealand.co.nz/investor

30 June 2026
Air New Zealand strategy reset: Te Pae Hou - Our Future

Air New Zealand is announcing the priorities of its strategy reset which are now being implemented
across the airline. Further details can be found in the presentation accompanying this release.
Our Future strategy reset focuses on returning Air New Zealand to profitability and generating strong
returns for shareholders over time, with implementation well under way. The focus is on three strategic
priorities:
• Customer First: Delivering world leading reliability and punctuality with a relentless focus on
priority segments. We are already seeing positive outcomes, including on-time-performance
improvement FY26 year-to-date, reflecting the focus the airline has put into reliability,
punctuality, and disrupt management. This focus will continue.
• Targeted Growth: Growing a profitable network and building our presence in larger, resilient
markets to generate returns and support New Zealand tourism. We have already announced
new Christchurch routes to Japan, Singapore, and Perth. We are fine tuning our premium
service flow and product offering and allocating more resources to our highest return-on-
capital areas.
• Resilient and Future Fit: Transforming our cost base and applying rigorous capital allocation
discipline. We are delivering on the cost-out programme with circa. $100m of annualised
benefits forecast to flow from FY27, while creating momentum for ongoing cost transformation.
We are working with aircraft manufacturers to reprofile our aircraft deliveries to smooth capital
expenditure.
A conference call for investors and analysts will be hosted by Nikhil Ravishankar (Chief Executive
Officer) and Richard Thomson (Chief Financial Officer) at 1:00pm NZST today, Tuesday 30 June
2026, and can be accessed as follows:
1. Live via webcast: Click here for a link to the investor and analyst webcast.

2. Live via telephone (for “listen-only” participants and those who would like to ask a question):
Click here for a link to the conference call.
Please register in advance of the webcast and conference call using the links provided above. Upon
registering, you will be provided with participant dial-in numbers, Direct Event passcode and unique
registrant ID.
A replay of the webcast will be accessible through the results section of the Investor Centre on Air
New Zealand's website: https://www.airnewzealand.co.nz/investor-centre

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A I R N E W Z E A L A N D 2 0 2 4 I N T E R I M R E S U L T S
1
2026
Strategy Reset
Investor presentation
30 June 2026

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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 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;
•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; and
•is expressed in New Zealand dollars unless otherwise stated and
figures, including percentage movements, are subject to
rounding.
The Company, its directors, employees and/or shareholders shall
have no liability whatsoever to any person for any loss arising from
this presentation or any information supplied in connection with it.
Nothing in this presentation constitutes financial, legal, regulatory,
tax or other advice.
Forward-looking statements and disclaimers

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Overview
•The past few years has seen a period of significant operational and financial pressure, including aircraft and engine availability constraints,
a weak New Zealand economy, increasing aviation system costs and the recent fuel market disruption.
•The Board asked the CEO to undertake a full strategy review when taking up the CEO role in October 2025.
•Our Future strategy reset is the result of an extensive internal piece of work and focuses on returning Air New Zealand to profitability and
generating strong returns for shareholders over time, with implementation well under way, and focus on three strategic priorities:
•Customer First: Delivering top tier reliability and punctuality with a relentless focus on priority segments. We are already seeing
positive outcomes, including on-time-performance improvement FY26 year-to-date, reflecting the focus the airline has put into
reliability, punctuality, and disrupt management. This focus will continue.
•Targeted Growth: Growing a profitable network and building our presence in larger, resilient markets to generate returns and support
New Zealand tourism. We have already announced new Christchurch routes to Japan, Singapore, and Perth. We are fine-tuning our
premium service flow and product offering, and allocating more resources to our highest return-on-capital areas.
•Resilient and Future Fit: Transforming our cost base and applying rigorous capital allocation discipline. We are delivering on the
cost-out programme with circa. $100m of annualised benefits forecast to flow from FY27, while creating momentum for ongoing cost
transformation. We are working with aircraft manufacturers to reprofile our aircraft deliveries to smooth capital expenditure.
•On 14 May 2026, Air New Zealand announced it expected an FY26 loss before taxation in the range of $340 million to $390 million. That
guidance remains unchanged. Today's announcement shares the company’s direction, priorities and actions. It is not a full medium-term
financial framework, and no new financial targets are being provided today.
•Further commentary will be provided at FY26 annual results and a future Investor Day, currently planned for November 2026.

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Air New Zealand is moving from post-Covid and engine-disruption
recovery into a new phase
FromTo
Survive Covid
Priorities: Protect liquidity, keep New Zealand
connected, then rebuild the team afterwards.
Unprecedented engine issues
Priorities: Lease additional aircraft and engines,
manage engine costs, secure the network and
schedule, negotiate compensation.
Invest in foundations
Priorities: Digital modernisation, aircraft retrofits,
people capability, paying off infrastructure deficit
e.g. hangars, ground service equipment.
Customer first
Must Wins: Safe, reliable, punctual operations and a
uniquely Kiwi service.Focus on key segments, e.g.
business travellers and inbound premium tourists.
Optimise marketing, sales, and distribution.
Targeted growth
Must Wins: moderated wide-body growth, stimulating
inbound premium flows, continue loyalty
transformation and partner expansion, and diversify
revenue across flight-adjacencies
Resilient and future fit
Must Wins: Cost discipline, capex discipline,
sustainable regional network and efficient aviation
system in New Zealand.
Fuel context
External headwind:
fuel price and crack
spreads remain elevated
and volatile.
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Customer first
Targeted growth
Resilient and future fit
Safe, reliable, punctual
Unique Kiwi service
and products
Modern marketing, sales
and distribution
Cost transformation
Financially sustainable regional
network
Efficient aviation system
for New Zealand
Targeted, profitable
network growth
Continue loyalty transformation and
partner expansion
Revenue diversification
(flight and flight-adjacent)
Our Future focuses on three clear strategic priorities
These priorities are centered on taking cost out of the business, ensuring the invested capital
profile is appropriate for the growth outlook, and targetedTRASK growth
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Customer first
World leading reliability is at the core of the customer proposition, with a
relentless focus on priority segments.
Our objectives
Safe, reliable, punctual
Unique Kiwi service and products
Modern marketing, sales and distribution
What we’ve done
✓Introduced Domestic clean-sheet schedule design to improve reliability
✓Lifted on-time-performance (FY26 YTD A15
1
+2.9pt to 80.9%)
✓9 out of 14 787-9 retrofits completed, the balance complete by Nov 26
✓Refreshed the in-flight product offering
✓Step-changed passenger self-service
✓Built precision marketing platform
What we are
doing now
•Targeting top 5 on-time airline in the world for on-time performance
•International clean-sheet schedule implementation
•Fine tune premium service flow and product offering, including 777
retrofit
•Further improve disrupt management
•Dual Koru lounge proposition
•Deliver transition to offer order / NDC (‘next gen retailing’)
•Shift from above-the-line to precision marketing
Premium
Leisure
Long-haul inbound
Business
and SME
High-value VFR
and Leisure
Domestic
Short-haul outbound
1.On time performance measured as arrivals within 15 minutes.

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Targeted growth
Grow a profitable network and building our presence in larger resilient markets that generate
returns through the cycle.
Targeted, profitable network growth
Continue loyalty transformation and partner expansion
Revenue diversification across flight and flight-adjacent
✓
Christchurch route expansion (Japan, Singapore, Perth)
✓
Domestic growth – Auckland, Queenstown, Christchurch-Hamilton
✓Engine issue recovery and return of AOG
1
✓Loyalty re-platform and re-brand
✓Partners expansion (ongoing), including extension of Westpac partnership
✓Negotiating an updated 787 delivery profile (ongoing)
International
•Pivot to inbound premium
leisure growth
•New 787 deliveries, fit for
mission and customer
•New A321neos for delivery
in FY28
•Western Sydney airport
Alliances
•Strengthen hub advantage
•Optimise alliance partnership
network
Domestic
•Grow SME market share
•Optimise inbound tourism
flow to domestic network
•Regional connectivity and
partnerships
•New A321neos for delivery
in FY28
Loyalty and revenue
diversification:
•Targeted earn and burn
•Maximising flight adjacent
revenue growth
•Continue partner expansion
1.Aircraft On Ground or “Grounded Aircraft”.
Our objectives
What we’ve done
What we are
doing now

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Resilient and future fit
Cost transformation and capital discipline for a resilient airline that delivers in a volatileworld.
Cost transformation
Financially sustainable regional network
Efficient aviation system for New Zealand
✓Cost out programme (ongoing) including organisational restructure
✓Fuel efficiency programme (ongoing)
✓Mitigated the effects of engine issues on network resilience
✓Commenced programme of work and stakeholder engagement to
drive sustainable regional network
✓Established asset-backed, flexible liquidity facility
•Cost-out and labour productivity programmes
•Tech Ops (Engineering and Maintenance) transformation
•Continued advocacy and bilateral airport negotiations
•Network scale – unwind of cost inefficiencies as grounded aircraft
return to service
•Fleet – induct new deliveries to drive superior operating economics
•Early return of AOG aircraft to support capacity growth
•Rephase 787 aircraft deliveries
•Restore capital management metrics post fuel crisis
Near-term cost drivers:
Labour and overhead
~$100m
Annualised savings
New and returning fleet
Up to 20%
CASK efficiency
1
Network scale
Last 787 AOG returns to service
June 2026
Our objectives
What we’ve done
What we are
doing now
1.Relative unit economics of A321neo vs. A320ceo and of B787-9 vs. B777-300ER depends on sector flown and fuel price, among other factors.

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Resilient and future fit
Grounded aircraft are returning to service earlier than expected
Peak AOGNow
787-9A320/1neo787-9A320/1neo
6
AOG of 20 aircraft;
15 extra engines
5
AOG of 14 aircraft;
4 leases
2
AOG of 20 aircraft;
10 extra engines
0
AOG of 14 aircraft;
3 dry leases
1.Aircraft On Ground or “Grounded Aircraft”.
2.Teal indicates aircraft on ground; purple indicates aircraft available.
1
10

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Capital discipline includes rephasing aircraft deliveries to help smooth
investment, aided by improvement in AOG position
Actual and forecast aircraft capital expenditure
1
1.Includes 10x contracted B787 deliveries and A321neo deliveries. Does not include any further orders or option aircraft. Delivery dates remain subject to
agreement with manufacturers. FY26 capex has not been updated since FY26 interim results. Final FY26 capex figures will be provided at FY26 annual
results. FY32 and beyond is single year based on 10x aircraft, not an average capital expenditure p.a..
20242025202620272028202920302031
Future
commitments
Aircraft Capex (actual + forecast)Aircraft Capex (rephased - WIP)
The first two B787s will
now deliver 1H-27, not
FY26
Capacity Growth
Subject to economic conditions
and demand growth, total network
is expected to grow at a CAGR of
3% to 4%
202620272028202920302031
With a concertina impact in FY27,
Management is re-profiling aircraft
deliveries, in discussion with
manufacturers
Work-in-progress
Resilient and future fit

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Building blocks of sustainable shareholder returns
Normalisation of fuel
crisis and engine-
related issues
Unwind of sub-scale
network
Exit engine issue costs
Alignment of margins
post fuel crisis
2026
Illustrative return to profitability
Further commentary on financial targets at
FY26 Annual Results and future Investor Day
ROIC > or
equal to
WACC
Targeted Growth
Resilient and
Future Fit
Customer First
✓Top 5 reliability
✓Product focused on
key segments
✓Delivering best offers
to customers
✓Targeted, profitable
network growth
✓Regional connectivity
and partnerships
✓Directed Koru earn and
burn
✓Cost-out programme
✓Tech Ops
transformation
✓Re-phased fleet growth

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Core to Our Future are four foundations that will not change;
these are how we deliver
An empowered team
with a clear plan, who work
together and feel empowered
to do the right thing.
Safety is non-negotiable.
It must be built into every
decision, every operation and
every change we make.
A sustainable ecosystem
embedded in the choices
we make about our fleet,
fuel, operations and
long-term connectivity.
Weave technology
into how we work, tolls that inform
better decisions and enabling better
outcomes for customers, our people
and our commercial results.
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Air New Zealand Investor Update (Op Stats) May 2026 Air New Zealand 2026 Annual Results Webcast Details

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