Air New Zealand announces 2026 annual results

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.com/en-nz/investor-centre


28 August 2026
Air New Zealand announces 2026 annual results

Financial Summary
• Loss before taxation of $336 million
• Net loss after taxation of $242 million
• Total revenue of $7.0 billion, up 3.9% on 2025
• Passenger revenue of $6.1 billion, up 4.8% on 2025
• Operating cash flow of $819 million, compared with $940 million in 2025
• ASK capacity up 1.3% across the network as aircraft returned to service, partly offset by
capacity reductions as the airline responded to unprecedented, elevated fuel prices
• Result largely driven by increased fuel prices, the ongoing impact of multi-year engine
availability issues, lifecycle maintenance costs and additional maintenance costs on leased
engines, and aviation system costs rising at a rate well above inflation
• No final dividend declared, in line with the airline’s Capital Management Framework

Air New Zealand today announced a loss before taxation of $336 million for the 2026 financial year,
compared with earnings before taxation of $164 million
1
in the prior year. The result is slightly better
than the guidance range provided to the market in May 2026. Net loss after taxation was $242 million.
The result was primarily driven by four factors:
• Jet fuel prices: The Middle East conflict increased fuel cost by an estimated $328 million
compared to what we expected going into the second half, and by $205 million after hedging,
with an estimated $135 million impact on the pre-tax result after fare adjustments and capacity
reductions.
• Engine availability: Ongoing Rolls-Royce Trent 1000 and Pratt & Whitney PW1100 engine
issues impacted the result by an estimated $190 million
2
through lost capacity, additional lease
and engine costs, lower fleet utilisation and operating inefficiencies.
• Aviation system costs: New Zealand aviation costs have risen at more than twice the rate
of inflation since 2019. Air New Zealand and our customers’ share of these aviation system
charges across New Zealand and the offshore ports we fly to, was $1.2 billion in 2026, a price
increase of $142 million on 2025. Of this, approximately $720 million was recognised as a cost
in our financial statements in 2026, a price increase of approximately $83 million compared to
2025.

1
2025 earnings before taxation restated. Refer to Note 27 of the 2026 Group financial statements.
2
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.

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.com/en-nz/investor-centre


• Maintenance: 2026 was a peak aircraft maintenance year, with an increase of $139 million,
excluding foreign exchange, compared to 2025, driven by lifecycle maintenance costs and
additional maintenance costs on leased engines.
Air New Zealand Chair Dame Therese Walsh said this year’s result is representative of the significant
external pressures the business has faced in the last financial year.
“The Board and management have a well-defined plan to rebuild a financially resilient and
commercially sustainable national airline, underpinned by our new strategy, Te Pae Hou - Our Future.
“As the national airline, our success is closely connected to New Zealand’s success. By strengthening
our business and positioning Air New Zealand for sustainable growth, our strategy reset will enable
us to play an even greater role in supporting tourism, exports and New Zealand’s long-term economic
prosperity,” said Dame Therese.
Air New Zealand Chief Executive Officer Nikhil Ravishankar said the airline had responded decisively
to prolonged engine constraints and the sharp increase in fuel prices, while continuing to improve the
customer experience and operational performance of the airline.
“It’s been a very challenging year for aviation, and our financial result reflects these challenges. Given
the price sensitivity of air travel, airlines globally have not been able to recover the full increase in fuel
costs. We took quick and decisive action through fare adjustments and capacity reductions to balance
affordability for customers and maximise recovery and will continue to do so.
“However, we are making real progress on what we can control, including improving our on-time
performance from 77.5 percent in 2025 to 84.0 percent in the second half of the financial year,
alongside an improvement in customer satisfaction.
“These are very significant improvements and have been the result of a detailed operational and
resilience-driven review of our schedule that included a focused programme of initiatives across our
team, and the rollout of new digital tooling in support of operational communication and decision
making. We continue to invest in this area with a goal of being one of the top 5 airlines in the world
for reliable and punctual operations.
“We have also taken decisive action to simplify parts of the organisation and evolve our operating
model, including restructuring across a number of areas to reduce duplication, sharpen accountability
and improve productivity. We have retrofitted 9 out of 14 of our Boeing 787 fleet – and the new interior
product is resonating very well with customers, The remaining 787 fleet fit-out will be completed by
November this year, slightly ahead of schedule.
"Additionally, after several years of disruption, the engine challenges that have constrained our
network are now substantially behind us. Our teams have worked relentlessly with Rolls-Royce and
Pratt & Whitney to return grounded aircraft to service earlier than expected, with aircraft availability
improving by the end of the financial year. There are still residual risks and costs to work through, but
we enter 2027 in a considerably more reliable fleet position.
“This progress matters, but there is still work to be done. We are making deliberate choices on
capacity and taking a disciplined approach to both our costs and our capital. Our focus now is on

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.com/en-nz/investor-centre


translating the operational momentum we have built into stronger and more sustainable financial
performance,” said Mr Ravishankar.
2026 financial performance
Passenger revenue increased 4.8 percent from the prior year to $6.1 billion.
Capacity increased 1.3 percent across the network compared with the prior year as grounded aircraft
returned to service, partly offset by capacity reductions in response to elevated fuel prices resulting
from the Middle East conflict in the second half. Group Revenue per Available Seat Kilometre (RASK)
increased 3.4 percent across the network as the airline managed fares and capacity in an effort to
recover the impact of higher fuel prices.
Cargo revenue declined 0.6 percent to $484 million, as higher fuel costs affected freight demand and
customers managed their operations and volumes in response to increased freight costs.
Operating costs increased 11.8 percent, primarily reflecting an increase in fuel costs compared with
the prior year. While fuel prices declined four percent in the first half of the financial year compared to
the same period last year, this was more than reversed by a sharp 58 percent increase in the second
half compared to the same period last year. Jet fuel prices averaged US$111 per barrel in the 2026
financial year, compared with US$88 per barrel in 2025.
Non-fuel operating costs increased 10.0 percent, or $438 million, driven by lifecycle maintenance
costs and additional engine maintenance costs on leased engines, and aviation system costs
increasing at more than twice the rate of inflation since 2019.
In response, the airline has delivered $94 million in incremental transformation benefits in 2026. An
additional $135 million annualised savings, including direct and indirect costs, have been identified,
which will accrue from the 2027 financial year to reduce the overall cost base and offset expected
inflation. This includes the $100 million previously disclosed in May and this work is ongoing.
Te Pae Hou - Our Future Strategy
In June, Air New Zealand launched Te Pae Hou - Our Future, setting out the airline’s ambition to be
the world’s most respected airline and three clear strategic priorities.
Mr Ravishankar said: “Our purpose is to enrich our country by connecting New Zealanders to each
other and New Zealand to the world. Delivering on that purpose means being clear about where we
focus, where we invest and how we create enduring value.”
• Customer First - providing safe, reliable and punctual service for our customers, delivering
unique Kiwi service and innovative products, and increasing customer reach and sales with
smarter, more relevant offers.
• Targeted Growth - targeting profitable network growth, transforming our loyalty programme
in line with industry leading practice, and diversifying our revenue streams.
• Resilient and Future Fit - continuing the cost transformation programme, developing a
financially sustainable regional network and delivering on our capital management metrics.

“A stronger Air New Zealand is good for New Zealand. Our focus is on building an airline that can

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.com/en-nz/investor-centre


grow sustainably, invest with confidence and continue to support the tourism, trade and connections
that support New Zealand’s long-term economic growth,” said Mr Ravishankar.
Outlook
Prior to the Middle East conflict, the airline would have expected, in its central case, to return to
profitability in the 2027 financial year, reflecting underlying improvements in the business.
Given the continued uncertainty surrounding the conflict, the volatility of jet fuel prices, and with jet
fuel currently around US$150 per barrel, the airline is not in a position to provide earnings guidance
for the 2027 financial year at this time.
Excluding fuel, the major factors that impacted the 2026 financial result are expected to continue to
have some impact in the 2027 financial year, albeit to a lesser extent:
• Disruption from engine availability is reducing substantially as aircraft return to service.
However, there remains an estimated financial impact of between $70 million to $90 million in
2027 from a combination of continuing lease commitments related to engine issues and
available aircraft not able to be fully utilised due to the fuel crisis.
• We expect aircraft maintenance costs to be $50 million to $100 million lower than in 2026.
• Aviation system costs continue to rise well above inflation, with airport charges expected to
increase by upwards of 10 percent at some ports during the 2027 financial year.
The airline expects the 2027 financial year to be both a transition and recovery year, with operational
performance continuing to improve even as elevated fuel prices weigh on profitability. We also expect
the range of initiatives we have implemented in response to the currently elevated fuel cost will
contribute to offsetting a larger portion of the elevated cost of fuel compared to the prior year.
Mr Ravishankar said, “We are seeing encouraging inbound demand, with strong forward bookings
into New Zealand. This is a positive signal for tourism and for the country more broadly. New Zealand
remains a highly desirable destination, and our investment in our onboard product and unique Kiwi
hospitality puts Air New Zealand in a strong position to bring more international visitors to our shores.
“We remain focused on executing our strategic priorities, improving financial performance and
positioning the airline for long-term sustainable returns.”
The airline will provide a more detailed update on its strategy and medium-term financial objectives
at an Investor Day later this year.
Ends
This announcement is authorised for release on the NZX and ASX by Jennifer Page, General Counsel
& Company Secretary.
For investor relations queries, please contact:
Andrew Familton, Corporate Finance Lead
andrew.familton@airnz.co.nz
+64 21 274 1001
For media enquiries, please contact:
Air New Zealand Communications
media@airnz.co.nz
+64 21 747 320

---

1

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A I R N E W Z E A L A N D 2 0 2 6 A N N U A L R E S U L T S
2
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 Group financial
statements for the year ended 30 June 2026, 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 2026 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 on 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.
•any reference to a year refers to the financial year ending 30 June, unless otherwise stated.
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 financial statements
and Five-Year Statistical Review contained in the 2026 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 39 for a glossary of the key terms used in this presentation.
F O R W A R D-L O O K I N G S TAT E M E N T S A N D D I S C L A I M E R

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2026 Highlights
2026 Financial Performance
Outlook
Supplementary Information
Contents

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A I R N E W Z E A L A N D 2 0 2 6 A N N U A L R E S U L T S
4
2026
Highlights
Nikhil Ravishankar – Chief Executive Officer

5
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A I R N E W Z E A L A N D 2 0 2 6 A N N U A L R E S U L T S
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Engine availability improved late in the financial year. Residual
risks remain but the airline enters 2027 in a considerably more
reliable fleet position
Through the extraordinary efforts of our people across the
airline, we delivered a significant step-change in operational
performance, with on-time performance and customer
satisfaction reaching strong levels by the end of 2026
Financial performance was significantly and adversely
impacted by high fuel prices resulting from the Middle East
conflict and by engine availability issues
We reset our strategy around three strategic pillars;
customer first, targeted growth, and resilient and future fit, to
deliver sustainable returns to shareholders over time
Continuing to build momentum on underlying cost
management and profit improvement – delivered $94m of
incremental transformation benefits in 2026 and identified an
additional ~$135m of annualised savings, to accrue from 2027
2026 was a year of rebuilding our fleet,
demonstrating operational resilience and
setting Our Future strategy

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A I R N E W Z E A L A N D 2 0 2 6 A N N U A L R E S U L T S
6
ASKs up 1.3%
Return of grounded aircraft offset by
capacity response to elevated fuel prices
16.0m passengers flown
up 0.6% on 2025
> 5.4m loyalty members
Up 8.3% on 2025
External forces impacted earnings but we delivered improvements in operational performance
$336m loss before
taxation Compared to earnings
before taxation of $164m
1
in 2025
~$465m adverse impact to
2026 earnings before tax
Engine issues ~$190m
2
, net fuel
price impact ~$135m and $139m
3

higher aircraft maintenance costs
$6.1b passenger revenue
up 4.8% on 2025
AirlineRatings.com
Seven Star PLUS
safety-rated airline 2026
1.2025 earnings before taxation restated. Refer to Note 27 of the 2026 Group financial statements.
2.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.
3.Total maintenance cost year on year increase was $144 million, including FX.
4.On-time performance (OTP) refers to ’A15’, which is an industry-standard measure of arrivals within 15 minutes of scheduled arrival time.
RASK up 3.4%
Increased yield in response to higher fuel
prices on constrained capacity
Passenger Load Factor
83.7% up 0.3pts on 2025
Customer satisfaction
84.5 H2 2026, up 0.9pts from 2025
On-time Performance
3
84.0% H2 2026, up 6.5pts from 2025
2026 year in review
$94m of incremental
transformation benefits

77
Return of grounded aircraft means the airline ends 2026 in a materially
better place than when it started
Peak AOG
1
Now
787-9A20/1neo787A320/1neo
6
AOG of 20 aircraft
5
AOG of 14 aircraft
1-2
AOG of 20 aircraft
0-1
AOG of 14 aircraft
1.Aircraft On Ground or “Grounded Aircraft”. Presented in this slide as aircraft grounded solely as a result of the engine issues. Does not include 2 aircraft currently in maintenance and retrofit.
2.Teal indicates aircraft on ground; purple indicates aircraft available.
7
The airline is focused on mitigating residual risk and unwinding engine availability related costs
•Last of the 787s returned from long-term storage in June 2026, expect up to 2 x A320/1neos to be AOG through 2027
•Of the four short-term leased aircraft used in 2026, one has been returned, one is being returned now, and the remaining two in 2028
•Renegotiating new compensation terms with Rolls-Royce and Pratt & Whitney
•While grounded aircraft are returned from long-term storage, there will still be residual risks and costs to work through, but the airline
enters 2027 in a considerably more reliable fleet position
787A320/1neo
4 leased aircraft to maintain
capacity
15 extra engines on hand
3 dry leases to maintain capacity
10 extra engines on hand

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Te Pae Hou | Our Future: delivering against three strategic priorities
Customer first
What we are doing now
•Granular, clean-sheet schedule implementation
•Fine tune premium service, product and lounges
•Investment in new aircraft and interior product
•Further improve disruption management
•Dual Koru lounge proposition
•Deliver transition to offer order / NDC (Next Gen retailing)
•Shift from above-the-line to precision marketing
Targeted growth
•Targeted, profitable network growth
•Loyalty transformation and partner expansion
•Revenue diversification
What we are doing now
•Pivot to inbound premium leisure growth
•New 787s and A321neos – fit for mission
•Strengthen hub advantage and alliance network
•Grow SME market share
•Optimise inbound tourism to domestic network
•Regional connectivity and partnerships
•Maximise flight-adjacent revenue growth
•Continue loyalty partner expansion
Resilient and future fit
What we are doing now
•Cost out and labour productivity programmes
•Engineering and maintenance team transformation
•Unwind of cost inefficiencies as fleet returns
•New deliveries to drive superior operating economics
•Rephase 787 aircraft deliveries
•Restore capital management metrics post fuel crisis
•Advocacy and bilateral airport negotiations
Delivered to Date
1.On-time performance (OTP) refers to ’A15’, which is an industry-standard measure of arrivals within 15 minutes of scheduled arrival time.
2.Relative unit economics of A321neo vs. A320ceo and of 787 vs. 777-300ER depends on sector flown and fuel price, among other factors.
84.0%
H2 2026 OTP
1

(+6.5pts vs. 2025)
9 / 14
787 retrofits complete;
the balance by end of
November 2026
$94 million
incremental
transformation benefits;
Additional $135 million
annualised cost savings
identified
Up to 20%
CASK efficiency
2

from new/returning fleet
84.5
H2 2026 CSAT
(+0.9pts vs. 2025)
#1
Randstad NZ #1most
attractive employer
for three consecutive
years (2023 - 2025) and
nine times overall
•Safe, reliable and punctual
•Unique Kiwi service and innovative products
•Deliversmarter, more relevant offers
•Cost transformation
•Financially sustainable regional network
•Delivering on our capital management metrics

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Key customer metrics improved in 2026
Investment in the customer proposition, operating reliability and in our people are
delivering positive customer results
•On-time performance finished the year with
continued momentum, at 84.0% in the second half
of the year, up from 77.5% in 2025
•Granular, clean-sheet schedule implementation
•Commenced the Next Gen Kiosk rolloutand a new
and improved web check-in
•Successfully trialled Starlink on the domestic
network
•Improved disrupt self-service for customers,
empowering customers to find a new flight that suits
them best
•Continued introduction of retrofittedaircraft, with
Business Premier +3% CSAT higher than the
previous product
1.On-time performance (OTP) refers to ’A15’, which is an industry-standard measure of arrivals within 15 minutes of scheduled arrival time.
2025H2 2026
H2 2026 vs
2025
On-time performance
1
77.5%84.0%+6.5pts
Customer satisfaction
(“CSAT”)
83.684.5+0.9pts
Controllable cancellations
2.2%1.3%+0.9pts

1010
TASMAN & PACIFIC ISLANDS
ASIANORTH AMERICA
NEW ZEALAND DOMESTIC
•Higher inbound passenger fares from
across Asia
•Premium cabin mix and revenue
growth in Q4 driving elevated RASK
•Softer cargo volumes through 2026,
with improved yields
•Reduced passenger demand offset by
increased yield in response to
increased fuel price
•Capacity management to match
demand, with up-gauging being
explored on routes with strong demand
•Flat inbound passenger demand from
North America
•Sales from New Zealand remained
soft, impacted by weak NZD
•Softer cargo volume through 2026,
with improved yields
Passengers+0.4%
ASKs+1.1%
Load factor change(0.5 pts)
RASK
2
+1.6%
Passengers(0.9%)
ASKs+0.5%
Load factor change+0.2 pts
RASK
2
0.2%
Passengers+5.2%
ASKs+7.7%
Load factor change(1.4 pts)
RASK
2
(0.1%)
Premium cabin revenue growth
+14%
Economy cabin revenue growth
+3%
Ancillary revenue
+12%
PRODUCT MIX
•Solid passenger growth, underpinned
by strong inbound Australian demand
across 2026
•Capacity growth through delivery of
two new A321neo leased aircraft in
the past 2 years
1.Figures represent year-on-year change in 2026 compared to 2025.
2.RASK is excluding FX and unused customer credit breakage.
Passengers(0.6%)
ASKs(4.3%)
Load factor change+2.8 pts
RASK
2
+12.1%
Higher inbound volumes across international markets.
New Zealand outbound and domestic demand remains soft

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Next Generation revenue management
across the full network
Direct Ancillary buy-upsContact Centre efficiencies, including the
roll out of Live Chat
Koru programme transformationAutomated disrupt rebooking systemCargo Revenue Management transformation
Transformation initiatives delivered an incremental $94 million
of benefits in 2026

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2026
Financial
Performance
Richard Thomson – Chief Financial Officer (outgoing)

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•Operating revenue $7.0 billion, up 3.9% on prior year
•Passenger revenue $6.1 billion, up 4.8% on prior year
•Cargo revenue $484 million, down 0.6% on prior year
•Loss before taxation $336 million, compared to profit
before tax of $164 million in 2025
1
•Net loss after taxation $242 million, compared to net
profit after tax of $108 million in 2025
1
•Liquidity $1.6 billion
2
(2025: $1.7 billion)

and just above
the target range of $1.2 billion to $1.5 billion.
•Operating cashflow $819 million, compared to $940
million in 2025
•Net Debt to EBITDA 3.8x (2025: 1.2x)
1
•No final dividend in line with Capital Management
Framework
(810)
574
222
164
(336)
20222023202420252026
Covid-19
impacted
period
Earnings/(Loss) Before Taxation
($ millions)
1.2025 earnings before taxation restated. Refer to Note 27 of the 2026 Group financial statements.
2.Includes $989 million cash and $604 million in undrawn funds under revolving facilities..
Middle
East
conflict
Financial summary
Engine availability issues from mid
calendar year 2023
1

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14
•Revenue and Other Income includes
a $39m unfavourable movement in
engine-related compensation
received; $65m in 2026 compared to
$104m in 2025
•Non-fuel costs saw moderate price
inflation, with the exception of
aviation system costs which
increased more significantly
•Maintenance costs increased due to
lifecycle maintenance and additional
maintenance costs on leased
engines
•This graph includes benefits of the
$94 million transformation initiatives
Profitability waterfall
1.Refer to Slide 35 for further details on fuel cost movement.
2.Full-time equivalent staff levels were broadly flat at ~11,700.
Additional commentary

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~$465m adverse impact to 2026 earnings before taxation due to
global engine issues, Middle East conflict and timing of lifecycle
maintenance costs
~$190m
Additional costs due to engine issues and delays
(net of compensation received)
Engine issues
Continuing engine issues resulted in additional lease cost,
reduced capacity and lost scale economies, partially offset by
compensation received.
$205m
fuel price impact net
of hedging
Middle East conflict
and fuel price crisis
Jet fuel costs increased from US$88/barrel in 2025 to
US$111/barrel in 2026.
Compared to H2 forecast, earnings before tax was adversely
impacted by ~$135m.
~$70m
fuel price mitigation
actions
$139m
Higher costs due to increased activity, timing of
lifecycle maintenance events, and additional
maintenance on leased engines
Aircraft maintenance
costs
2026 was a peak year for aircraft maintenance.
We expect maintenance costs to be $50m to $100m lower in
2027 than in 2026.

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While general inflation is moderating, aviation system costs -
most importantly airport charges - continue to increase
Aviation system costs continue to rise
faster than general inflation
Air New Zealand’s exposure to these
charges was $142 million higher in 2026
1
The significant increase in AvSec and passenger levies
is not expected to repeat in 2027, but landing charges
are expected to continue running well ahead of CPI.
Aviation
system cost
inflation
14%
All other
cost inflation
(ex fuel)
3%
Air navigation charges
5.8%
System-wide landing charge inflation
6.8%
CAA safety and AvSec security levies
92%
1.Aviation system costs increased $142 million in 2026 compared to 2025, including a $83 million increase in direct costs in the Air New Zealand income statement, and $59 million increase in passenger charges and
levies paid by customers and therefore impacting demand.
2.These charges and levies are not recognised as costs in the Air New Zealand financial statements, but are costs payable by customers.
International passenger charges and levies
2
15%

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•Reported CASK increased 10.4%,
largely due to increased jet fuel price
and inefficiencies associated with
fleet constraints.
•Underlying CASK increased 4.8%,
excluding the impact of fuel price
and FX, primarily due to:
•Non-fuel operating cost inflation of
~4.4% across the cost base
•Increased maintenance activity,
representing 0.32c/ASK of CASK
increase
•Increased aircraft operations and
passenger services pricing and
activity, representing 0.23c/ASK of
CASK increase
Unit cost impacted by fuel price, fleet constraints
and continued price pressure across the aviation
ecosystem
14.45
0.52
0.39
0.31
0.2815.95
Reported CASK (cents)
JUNE 2025
CASK
RESTATED
1
FUEL PRICENON-FUEL
COST
INFLATION
DISECONOMIES
AND
INEFFICIENCIES
FOREIGN
EXCHANGE
JUNE 2026
CASK
1.2025 has been restated. Refer to Note 27 of the 2026 Group financial statements.

18
18
A I R N E W Z E A L A N D 2 0 2 6 A N N U A L R E S U L T S
18
Net debt increased in H1 2026 but was relatively flat in H2 2026,
despite the impact of the elevated fuel prices on earnings
2025 Net Debt
213
Operating cashflow
(693)
(286)
Non-cash
lease additions
(109)
OtherH1 2026 Net Debt
606
Operating cashflow
(466)
(81)
Non-cash
lease additions
(28)
Other2026 Net Debt
(1,080)
(1,955)
(1,924)
Aircraft payments ($462m)
Capitalised engine maintenance ($114m)
Non-aircraft capex ($117m)
EBITDA $164m
Transportation sales in advance $166m
Other working capital improvement
1
$331m
Interest and other ($55m)
$million
1Excludes non-cash working capital movements.
2Capital expenditure is primarily acquisition of property, plant and equipment, right-of-use assets and intangibles from the 2026 Group Statement of Cash Flows.
Capital
Expenditure
2
Capital
Expenditure
2
H1 2026
($875m)
H2 2026
+$31m
Aircraft payments ($133m)
Capitalised engine maintenance ($274m)
Non-aircraft capex ($59m)

19
19
A I R N E W Z E A L A N D 2 0 2 6 A N N U A L R E S U L T S
19
Outlook
Nikhil Ravishankar – Chief Executive Officer
Kris Cudmore – Chief Financial Officer

20
20
A I R N E W Z E A L A N D 2 0 2 6 A N N U A L R E S U L T S
20
•Forecast investment of ~$2.7 billion in
aircraft and associated assets through to
2031
2
•We are in active negotiations with Boeing
to rephase the delivery profile of 787
aircraft, smoothing the capital investments
to support capacity growth
•There are further deliveries beyond 2031
•Chart includes the cost of interior retrofit of 14
existing787 aircraft and refresh of seven 777
aircraft
•Estimated remaining cost of ~$200
million for both programmes over the next
~2 years
•787 retrofit completed by end of calendar
year 2026
•First 777 cabin refresh starting early
calendar year 2027
•In 2027 we expect incremental depreciation of
between $110 million to $130 million, driven
largely by 787 retrofit and new 787 deliveries.
1.Includes progress payments on aircraft and aircraft improvements (e.g. refurbishment); excludes engine maintenance. Refer to Slide 38 for fleet
delivery table. Assumes NZD/USD FX rate of 0.59.
2.Based on expected delivery dates, not contractual delivery dates.
Fleet investment update
$ millions
Actual and forecast aircraft capital expenditure
1
0
100
200
300
400
500
600
700
800
900
1,000
1,100
1,200
1,300
1,400
20242025202620272028202920302031
ForecastRephased
Historical

21
21
A I R N E W Z E A L A N D 2 0 2 6 A N N U A L R E S U L T S
21
Sector
20262027
ASKs
(million)
vs. 2025
vs. 2019
(pre-Covid)
estimated
% growth
Capacity Outlook Commentary
Domestic
6,439+1%
(9%)
(2%) to 0%
•H1 2027 impacted by tactical fuel-related capacity reductions
•Expected delivery of 2 x new A321 in H2 2027
Tasman and Pacific Islands
12,454+8%
2%
+3% to +5%
•New 787 deliveries in Q2 and return to service of grounded
widebody aircraft in Q3
•New routes: Christchurch to Perth and Auckland to Western
Sydney operating from October 2026
International long-haul
22,153(2%)
(17%)
+2% to +4%
•Return of grounded widebody aircraft available for service and
2 new 787 deliveries in 2027
•787 retrofit completed by Nov 2026 and rollout of 777 refresh
•New routes: Christchurch to Tokyo and Singapore. Increased
capacity Auckland to Singapore and Auckland to Taipei
•H1 will be affected by tactical fuel-related reductions, including
changes from 777 to 787
•Strong inbound forward bookings for next 6 months.
Group Capacity41,046+1%
(11%)
+2% to +4%
In 2026 we were still operating at ~10% below pre-Covid capacity and passenger levels, but slightly up on 2025.
Looking forward to 2027, capacity will partially recover with the return of the majority of historically grounded aircraft with improving
inbound demand and strong international forward bookings.
Capacity set to recover in 2027

22
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A I R N E W Z E A L A N D 2 0 2 6 A N N U A L R E S U L T S
22
~60% hedged against Brent Crude oil price and USD for 2027
1.Includes cost of carbon and the associated hedging portfolio, in addition to SAF purchases.
2.As at 14 Aug 2026.
3.Assumes NZD/USD rate of 0.59. Scenarios assume US$5 barrel move in Brent and US$5 barrel move in Crack.
22
Fuel hedging
•Mostly hedged in Brent Crude with ~20% overlay of Crack
spread swaps to mitigate some basis risk in H1 2027
•Brent is predominantly hedged with collar structures, with a
small layer of calls
•Assuming an average jet fuel price of ~US$130 per barrel
for 2027 (Brent ~US$80 per barrel and Crack ~US$50 per
barrel) fuel cost would be ~$2.1 billion
1

•2027 hedges cover ~60% of estimated volumes of ~8.3
million barrels
2
Foreign exchange hedging
•US dollar is ~60% hedged for 2027 at NZD/USD ~0.59
Fuel hedge position
2
Period
Hedged volume
(in barrels)
% Brent Crude hedged
H1 20273,280,00080
H2 20271,620,00038
2027 Fuel cost sensitivity
1, 2, 3

100110120130140150160
1,400
1,600
1,800
2,000
2,200
2,400
2,600
Singapore Jet (USD per barrel)
NZD total fuel cost
(millions)
UnhedgedHedged

23
23
A I R N E W Z E A L A N D 2 0 2 6 A N N U A L R E S U L T S
23
Prior to the Middle East conflict, the airline would have expected, in its central case, to return to profitability in the 2027 financial year,
reflecting the underlying improvements in the business.
Given the continued uncertainty surrounding the conflict, the volatility of jet fuel prices, and with jet fuel currently around US$150 per
barrel, the airline is not in a position to provide earnings guidance for the 2027 financial year at this time.
Excluding fuel, the major factors that impacted the 2026 financial result are expected to continue to have some impact in the 2027
financial year, albeit to a lesser extent:
•Disruption from engine availability is reducing substantially as aircraft return to service. However, there remains an estimated
financial impact of between $70 million to $90 million in 2027 from a combination of extraordinary costs related to the engine issues
and the recovery of our engines in the middle of a fuel crisis.
•We expect maintenance costs to be $50 million to $100 million lower in 2027 than in 2026.
•Aviation system costs continue to rise well above inflation, with airport charges expected to increase by upwards of 10 percent at
some ports during the 2027 financial year.
The airline expects the 2027 financial year to be both a transition and recovery year, with operational performance continuing to improve
even as elevated fuel prices weigh on profitability. We also expect the range of initiatives we have implemented in response to the
currently elevated fuel cost will contribute to offsetting a larger portion of the elevated cost of fuel compared to the prior year.
We are seeing encouraging inbound demand, with strong forward bookings into New Zealand. This is a positive signal for tourism and
for the country more broadly. New Zealand remains a highly desirable destination, and our investment in our onboard product and
unique Kiwi hospitality puts Air New Zealand in a strong position to bring more international visitors to our shores.
We remain focused on executing our strategic priorities, improving financial performance and positioning the airline for long-term
sustainable returns.
2027 Outlook

24
A I R N E W Z E A L A N D 2 0 2 6 A N N U A L R E S U L T S

2525
A I R N E W Z E A L A N D 2 0 2 6 A N N U A L R E S U L T S
25
Supplementary
Information

26
26
A I R N E W Z E A L A N D 2 0 2 6 A N N U A L R E S U L T S
26
30 Jun 202630 Jun 2025
Capital management targets
1
Gross debt
2
(3,188)(2,838)
Cash, restricted deposits and net open
derivatives
2
1,2641,758
Net debt
2
(1,924)(1,080)
Gross debt/EBITDA6.2x3.0x
Net debt/EBITDA3.8x1.2x
Net Debt to EBITDA ratio
of 1.5x to 2.5x
Gearing53.3%35.9%
Return on invested capital (ROIC)
3
(7.8)%7.3%
ROIC above pre-tax WACC
Total liquidity
2
1,5931,686
$1.2 billion to $1.5 billion
Moody's rating
Baa1 negative
(investment grade)
Baa1 stable
(investment grade)
Investment grade
Shareholder distributionsNo dividends declared
1.25 cps interim and 1.25 cps
final unimputed ordinary
dividends
Ordinary dividend payout ratio of
40% to 70% of net profit after
taxation (NPAT)
4
1.Refer to Slide 37 for more information on the CapitalManagementFramework.
2.In $ millions.
3.Operating earnings before finance costs and taxation divided by the average capital employed.
4.NPAT is calculated on a rolling twelve-month basis.
Key capital management metrics
26

27
27
A I R N E W Z E A L A N D 2 0 2 6 A N N U A L R E S U L T S
27
Jun 2026
$M
Jun 2025
$M
Movement
$
Movement
%
Operating revenue
7,0166,7552613.9%
(Loss) / earnings before taxation
(336)164(500)(305%)
Net (loss) / profit after taxation
(242)108(350)(324%)
Operating cash flow
819940(121)(13%)
Cash position
9891,436
(447)(31%)
Ordinary dividends declared
-2.50 cps
(2.50) cps(100%)
Financial overview

28
28
A I R N E W Z E A L A N D 2 0 2 6 A N N U A L R E S U L T S
28
1.Calculation based on numbers before rounding.
2.This is RASK excluding $11 million in unused customer flexibility credit breakage (June 2025: $35 million) which has been recognised within passenger revenue.
Group performance metrics
Jun 2026Jun 2025Movement
1
%
Passengers carried (‘000s)16,01015,9070.6%
Available seat kilometres (ASKs, millions)
41,046
40,5011.3%
Revenue passenger kilometres (RPKs, millions)
34,346
33,7691.7%
Load factor
83.7%83.4%
0.3 pts
Passenger revenue per ASKs as reported (RASK, cents)
14.914.4
3.4%
Passenger revenue per ASKs, excluding FX (RASK, cents)
14.814.4
2.2%
Passenger revenue per ASKs excluding FX and unused credit
breakage (RASK, cents)
2
14.714.4
2.6%

29
29
A I R N E W Z E A L A N D 2 0 2 6 A N N U A L R E S U L T S
29
1.Calculation based on numbers before rounding.
2.This is RASK excluding $3 million in unused customer flexibility credit breakage (June 2025: $10 million) which has been recognised within passenger revenue.
Domestic
Jun 2026

Jun 2025Movement
1
%
Passengers carried (‘000s)
10,048
10,142(0.9%)
Available seat kilometres (ASKs, millions)
6,439
6,4090.5%
Revenue passenger kilometres (RPKs, millions)
5,351
5,3110.8%
Load factor83.1%82.9%
0.2 pts
Passenger revenue per ASKs as reported (RASK, cents)
30.130.1
0.3%
Passenger revenue per ASKs, excluding FX (RASK, cents)
30.030.1
(0.2%)
Passenger revenue per ASKs excluding FX and unused credit
breakage (RASK, cents)
2
30.029.9
0.2%

30
30
A I R N E W Z E A L A N D 2 0 2 6 A N N U A L R E S U L T S
30
1.Calculation based on numbers before rounding.
2.This is RASK excluding $4 million in unused customer flexibility credit breakage (June 2025: $11 million) which has been recognised within passenger revenue.
Tasman & Pacific Islands
Jun 2026Jun 2025Movement
1
%
Passengers carried (‘000s)4,0413,8405.2%
Available seat kilometres (ASKs, millions)
12,45411,5627.7%
Revenue passenger kilometres (RPKs, millions)10,65710,0556.0%
Load factor85.6%87.0%
(1.4) pts
Passenger revenue per ASKs as reported (RASK, cents)
13.313.3
0.5%
Passenger revenue per ASKs, excluding FX (RASK, cents)
13.213.3
(0.6%)
Passenger revenue per ASKs excluding FX and unused credit
breakage (RASK, cents)
2
13.113.2
(0.1%)

31
31
A I R N E W Z E A L A N D 2 0 2 6 A N N U A L R E S U L T S
31
1.Calculation based on numbers before rounding.
2.This is RASK excluding $4 million in unused customer flexibility credit breakage (June 2025: $14 million) which has been recognised within passenger revenue.
International long-haul
Jun 2026Jun 2025Movement
1
%
Passengers carried (‘000s)1,9211,925(0.2%)
Available seat kilometres (ASKs, millions)
22,15322,530(1.7%)
Revenue passenger kilometres (RPKs, millions)18,33818,403(0.4%)
Load factor82.8%81.7%
1.1 pts
Passenger revenue per ASKs as reported (RASK, cents)11.410.67.5%
Passenger revenue per ASKs, excluding FX (RASK, cents)11.210.65.7%
Passenger revenue per ASKs excluding FX and unused credit
breakage (RASK, cents)
2
11.210.66.1%

32
32
A I R N E W Z E A L A N D 2 0 2 6 A N N U A L R E S U L T S
32
•Cargo revenue of $484 million, down 0.6% on the prior year.
Key drivers include:
−Increased capacity on Asia and Tasman sectors driven
by operating 777s on these routes, and additional Pacific
long-haul schedule, partly offset by a reduction in Japan
capacity.
−Lower load factors, primarily on the Tasman, with
capacity growth outpacing demand.
−International cargo yield improved, supported by fuel
cost pass through introduced in March 2026 in response
to higher fuel prices.
Cargo performance
Cargo revenue
($ millions)
486.6
4.1
8.4
0.7484.1
(15.7)
2025 CAPACITYLOAD
FACTOR
YIELDFOREIGN
EXCHANGE
2026

33
33
A I R N E W Z E A L A N D 2 0 2 6 A N N U A L R E S U L T S
33
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.
2.Refer to Slide 34 for breakdown of where compensation has been reflected in the 2026 Group financial statements.
Global engine issues and delays impacted financial
performance by ~$190 million
Impact on earnings
before tax excluding
compensation
1
Including lost revenue,
WAMOS lease cost, poor aircraft
operating economics, additional
ownership costs, loss of scale
and operating inefficiencies
Compensation received
2
Net impact on
earnings before tax
1
~$190 million
$105 million
~$295 million

34
34
A I R N E W Z E A L A N D 2 0 2 6 A N N U A L R E S U L T S
34
Compensation summary
1.$22 million of the $129 million prior year compensation amount relates to other periods.
Air New Zealand has entered into agreements with several manufacturers to compensate for the impact of engine shortages on the
business. Compensation recognised in the Statement of Financial Performance arising from these agreements has been reflected in the
following line items:
June 2026
$M
June 2025
1
$M
Movement
$M
Other revenue and income
65104
(39)
Fuel
-2
(2)
Maintenance
43
1
Other expenses
83
5
Depreciation and amortisation
2616
10
Finance costs
21
1
Total compensation received from manufacturers
105129
(24)

35
35
A I R N E W Z E A L A N D 2 0 2 6 A N N U A L R E S U L T S
35
•At the time of Interim Results
(Feb 2026) when full year guidance
provided, jet fuel price was
US$85/barrel.
Compared to the Interim Results
guidance statement, fuel costs were
$205 million higher than expected.
•Updated guidance provided in May
2026 was based on an assumed
average jet fuel price of
~US$145/barrel for H2 2026.
Compared to the May 2026 updated
guidance, fuel costs were $16 million
lower than expected.
•Mitigations include fare price
increases and selective capacity
reductions, alongside increased
bookings through Air New Zealand for
travel to Europe via Asia and the US
to avoid the Middle East.
The Middle East conflict had a material impact on
earnings in the second half
Additional commentary
$million
H2 2026
Fuel Cost Forecast
(Feb 2026)
H2 2026
Actual Fuel CostMovement
Fuel cost7411,069+328
Hedging (gains)/losses18(105)(123)
H2 2026 fuel cost759964+205
Mitigations(70)
H2 2026 Net Impact+135

36
36
A I R N E W Z E A L A N D 2 0 2 6 A N N U A L R E S U L T S
36
1.Excludes spare engine assets and operating leases (leases without a purchase option). Aircraft valuations based on Aircraft Value Analysis Company Limited (AVAC) as at 30 June 2026. Aircraft valuations are subject to market conditions,
aircraft condition, FX rates, technology advancement and other factors. Aircraft values are in USD and converted to NZD at June 2026 balance sheet rate of 0.5650. Foreign currency denominated debt outstanding as at 30 June 2026 and
converted to NZD at balance sheet rates (JPY: 91.50, EUR: 0.4950).
2.Debt maturity profile excludes operating leases. Finance leases are lease liabilities with purchase options. Operating leases are lease liabilities without purchase options.
Debt structure and maturity profile
Debt maturity profile at 30 Jun 2026
2
($ millions)
46 unencumbered aircraft at 30 Jun 2026
252
132
96
75
184
160
47
104
279
366
354
202720282029203020312032
26
20332034
Secured Debt and Finance Leases
NZ Retail Bond
Australian Medium-Term Notes
Secured Revolving Credit Facility
777-300ER3x
787-92x
A320/321neo6x
A320ceo5x
ATR72-6007x
Q30023x
•Market value of unencumbered aircraft ~$1.9 billion
1
•In addition, equity headroom of ~$2.1 billion
1
in aircraft pledged
as security within debt facilities
•15 aircraft were encumbered during H2 2026 in connection with
a drawdown under the new secured revolving credit facility

37
37
A I R N E W Z E A L A N D 2 0 2 6 A N N U A L R E S U L T S
37
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.
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)
•Return excess capital via special dividends or share
buybacks
• Disciplined investment in value accretive capex
• Target ROIC above pre-tax WACC
Capital Management Framework

38
38
A I R N E W Z E A L A N D 2 0 2 6 A N N U A L R E S U L T S
38
AircraftEngines
Number in
Fleet
Average Age
1
(Years)
Expected Delivery Dates – Financial Year
20272028202920302031
International
777-300ER
GE90
Core fleet: 7
Short-term
leased: 3
14.2
14.5
-----
787-9
3
Trent 1000
(GE engines
for deliveries
from 2027)
149.82221-
A321neo
(short-haul)
PW110095.9--2--
A320neo
(short-haul)
PW1100 66.3-----
Domestic
A321neo
(domestic)
PW1100 53.12----
A320ceo
(domestic)
V25001712.4-----
ATR72-600
PW127318.8-----
Q300
PW1232319.4-----
TOTAL
112
2
10.3
2
4241-
Fleet profile – as at 30 June 2026
1.Total fleet average age is seat weighted. This includes aircraft currently grounded due to engine maintenance delays.
2.This excludes short-term leased aircraft.
3.New Boeing 787 deliveries expected from 2027 to 2033 will be a mix of 787-9 and 787-10 aircraft.

39
39
A I R N E W Z E A L A N D 2 0 2 6 A N N U A L R E S U L T S
39
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 net 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 Group financial statements and Five-Year Statistical Review contained in the 2026 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

40
40
A I R N E W Z E A L A N D 2 0 2 6 A N N U A L R E S U L T S
40
Resources
Contact information
Email: investor@airnz.co.nz
Share registrar: enquiries.nz@cm.mpms.mufg.com
Investor website:www.airnewzealand.co.nz/investor-centre
Monthly traffic updates: www.airnewzealand.co.nz/monthly-investor-updates
Corporate governance: www.airnewzealand.co.nz/corporate-governance
Sustainability: https://www.airnewzealand.co.nz/sustainability
Find information on Air New Zealand

41

---

Annual Report 2026

At Air New Zealand,
we are driven by
a deep sense of
purpose – to
enrich our country
by connecting
New Zealanders
to each other and
New Zealand to
the world.

This year’s report highlights the
challenges and resilience that defined
our performance in 2026. In particular,
the Middle East crisis and resulting high
and volatile fuel prices, ongoing global
engine availability issues, and higher
engine maintenance requirements
placed significant pressure on fleet,
capacity, and fuel costs, which tested
the agility of our operation.
Our people have shown resilience and
flexibility in adjusting our operations
to these constraints to keep the
disruption to our customers to a
minimum and mitigate the impact on
our financial performance. The 2026
financial year also saw continued
investment in our aircraft, product and
our people. This made our operations
stronger and contributed to improved
on-time performance and customer
satisfaction this year.
We were also pleased to launch our
new strategy Te Pae Hou
|
Our Future.
A strategic reset which focuses on what
matters most – putting our customers
first, targeted growth, and building a
resilient and future fit airline, to turn the
airline around and return to profitability.
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 all 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.com/
en-nz/investor-centre.
This report covers the financial year
ended 30 June 2026 and is dated
28 August 2026. 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 Nikhil
Ravishankar, Chief Executive Officer.
In conjunction with the Air New Zealand
2026 Climate Statement, this document
constitutes the 2026 Annual Report to
shareholders of Air New Zealand Limited.
Dame Therese Walsh
Chair
Nikhil Ravishankar
Chief Executive Officer
About this ReportContents
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
Directors’ Statement 36
Our Consolidated
Financial Statements 37
Statement of Financial Performance 38
Statement of Comprehensive Income 39
Statement of Changes in Equity 40
Statement of Financial Position 41
Statement of Cash Flows 42
Statement of Accounting Policies 43
Notes to the Financial Statements 46
Independent Auditor’s Report 80
Five Year Statistical Review 84
Our Corporate
Governance Statement 88
Corporate Governance Statement 89
Remuneration Report 102
Employee Remuneration 107
Interests Register 108
Directors’ Interests in
Air New Zealand Securities 109
Indemnities and Insurance 109
Subsidiary Companies 109
Other Disclosures 110
Securities Statistics 111
General Information 113
Operating Fleet Statistics 114
Shareholder Directory 115
Front cover: Rachel, Flight Attendant
Paul, Pilot and Deputy Fleet Manager B787/B777
01
Air New Zealand GroupAir New Zealand Annual Report 2026

Our Purpose
Our guiding purpose is
To enrich our country by connecting
New Zealanders to each other, and
New Zealand to the world.
Our ambition is
To be the world’s
most respected
airline.
Our ambition is to be an airline New Zealanders
are proud to call their own, our people are proud
to be part of, customers choose to fly with,
and investors and partners value. We earn that
respect every day by operating safely and reliably,
caring for our customers and our people, making
disciplined commercial and financial choices, and
playing our part in New Zealand’s success.
Our purpose reflects the important role
Air New Zealand has played for generations
– bringing people and families together,
connecting businesses and communities,
supporting tourism and trade, and connecting
New Zealand with the world.
Because being respected means
holding ourselves to high standards and
always looking for ways to do better.
Hīkina te pae,
kia angitū
Raise the bar to achieve success
Because the airline we’re building
cannot be created by a handful of
leaders. It will be shaped by all of us.
Ka mua ka muri
Looking back to shape the future
We treat every customer, colleague
and partner with warmth and respect,
because Air New Zealand starts with
genuine care at its core.
Ko au ko koe,
ko koe ko au
I am you and you are me
0302
Air New Zealand Annual Report 2026Air New Zealand Group

N e w Yo r k
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
Tokyo***
Kerikeri
Whangārei
Tauranga
Hamilton
Rotorua
Ta u p ōGisborne
Hawke’s Bay
Palmerston North
New Plymouth
Nelson
Blenheim
Hokitika
Tīmaru
Dunedin
Invercargill
Queenstown
Christchurch
Wellington
Auckland
* Christchurch to Perth service commencing November 2026.
** Christchurch to Singapore service commencing October 2026.
*** Christchurch to Tokyo service commencing November 2026.
Seasonal service.
Air New Zealand at a Glance
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
360 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 112 aircraft and around 11,700
employees globally.
0504
Air New Zealand Annual Report 2026Air New Zealand Group

Performance HighlightsLetter from the Chair and Chief Executive Officer
$ 7.0 b
Operating revenue
Up 3.9% on last year
$336m
Loss before
taxation
Compared to $164 million
1

profit before taxation last
year, due to increased jet fuel
prices, and continued engine
availability issues
$242m
Net loss after
taxation
Compared to $108 million
1
net
profit after taxation last year
$819m
Operating cash flow
Compared to $940 million
last year
$135m
Adverse impact
to earnings
Due to increase in
jet fuel prices net of
mitigation actions
$190m
2

Adverse impact
to earnings
Due to continued engine
issues resulting in
additional lease cost,
reduced capacity and lost
scale economies, offset by
compensation received
2026 on-time
performance
80.6%
Up 3.1pts on last year
2026 customer
satisfaction
84.0
Up 0.4pts on last year
~
~
1. 2025 profit before tax and net profit after taxation restated.
2. 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.
Kia ora koutou
Air New Zealand
has reported a loss
before taxation of
$336 million for the
2026 financial year.
This is slightly better
than the guidance
provided in May 2026.
There are four major factors behind
this result:
• The Middle East conflict increased
our fuel cost by an estimated
$328 million compared to what we
expected going into the second half,
and by $205 million after hedging.
We reacted quickly and decisively,
adjusting capacity and fares in
Air New Zealand and our customers’
share of these aviation system charges,
across New Zealand and the offshore
ports we fly to, was $1.2 billion, a price
increase of $142 million on 2025. Of
this, approximately $720 million was
recognised as a cost in our financial
statements, a price increase of
approximately $83 million in 2026
compared to 2025. These increases
are outpacing the New Zealand
economy and New Zealand domestic
aviation demand. Management
continue to advocate for an affordable
aviation system and pricing structure
to ensure domestic and regional
aviation is sustainable in the long term
for the communities across the country
that rely on it.
As we continue to contend with multiple
external factors, we have reset the
business on a number of fronts to ensure
the airline can improve its performance
and excel in a volatile environment,
in particular:
• We have agreed and rolled out a new
strategy for the next 5 years;
• We have restructured the leadership
team and made enhancements to the
operating model, to refocus on cost
and capital allocation following our
Covid rebuild and engine disruptions;
• We have established a dedicated cost
and productivity programme to build
momentum on cost management
and profit improvements. We have
delivered $94 million in incremental
transformation benefits in 2026 and
have identified an additional $135 million
annualised savings, which will accrue
from the 2027 financial year to reduce
the overall cost base and offset expected
inflation. This includes the $100 million
previously disclosed in May;
Dame Therese Walsh, Chair and
Nikhil Ravishankar, Chief Executive Officer
response, but were only able to
mitigate about a third of this impact,
resulting in an estimated $135 million
impact on our overall pre-tax result.
• The multi-year engine issues with the
Rolls-Royce Trent 1000 engines on our
Boeing 787 fleet and Pratt & Whitney
PW1100 engines on our narrowbody
fleet contributed an estimated
$190 million
1
to the loss before taxation.
• In 2026 we experienced a peak year
for maintenance costs; the increase
of $139 million compared to 2025,
excluding foreign exchange, was
driven by lifecycle maintenance costs
and additional engine maintenance
costs on leased engines. We expect
$50 million to $100 million of this cost
to unwind in 2027.
• Aviation in New Zealand continues to
face structural challenges, with aviation
system costs increasing at over twice
the rate of inflation since 2019.
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.
07
Air New Zealand Group
06
Air New Zealand Annual Report 2026

Letter from the Chair and Chief Executive Officer (continued)
• We have worked relentlessly with
Rolls-Royce and Pratt & Whitney to
expedite the recovery of engines. We
now expect no more than one of our
widebody and up to two narrowbody
jets to be grounded due to these
multi-year engine issues in 2027;
• We have optimised our schedule,
deployed new frontline tools,
retrained our teams, reworked our
aircraft turnaround processes and we
delivered global top-decile on-time
performance
1
amongst comparable
airlines, achieving 84.0% in the
second half of the year. Customer
satisfaction scores also continue to
improve, ending the year at 84.5 in
the second half of the year; and
• We are working with Boeing to adjust
our aircraft delivery profile to ensure
that we smooth capital expenditure
and align the timing of capacity
additions with growth expectations.
We enter 2027 clear-eyed about the
challenges ahead, but increasingly
confident in the underlying direction
of the business. While the Middle East
conflict and the residual impact on fuel
prices and economies continue, the
key drivers of our underlying financial
performance are improving, and our
operation is becoming more predictable.
We expect 2027 to be both a transition
and recovery year for the airline.
The new strategy is laser-focused on
restoring attractive and sustainable
returns to shareholders over time.
Purpose
Every New Zealander who travels with
us and every visitor we bring to New
Zealand supports tourism, regional
communities, exporters and local
businesses. That connection to New
Zealand is something we never take
for granted. As the national airline,
our role extends beyond transporting
passengers. We help connect New
Zealand to opportunity, and that sits
at the heart of the decisions we make.
We have one of the most valuable brands
in New Zealand, we have the strongest
loyalty programme, we are consistently
ranked one of New Zealand’s most
attractive employers, and we are back to
commanding strong customer preference.
Strategy reset
In October last year we launched a full
company-wide strategic review, run
by our leadership team, and taking
input from more than 3,000 Air New
Zealanders from all areas of the business.
The level of engagement reminded us
just how deeply our people care about the
future of this airline.
The result, our Te Pae Hou
|
Our Future
strategy, has three priorities:
• Customer First – providing safe,
reliable and punctual service for our
customers, delivering unique Kiwi
service and innovative products, and
increasing customer reach and sales
with smarter, more relevant offers.
• Targeted Growth – targeting profitable
network growth, transforming our
loyalty programme in line with industry
leading practice, and diversifying our
revenue streams.
• Resilient and Future Fit – continuing
the cost transformation programme,
developing a financially sustainable
regional network and delivering on our
capital management metrics.
This sits on our four strong foundations:
Empowered Team; Safety Focused;
Sustainable Ecosystem; and Empowering
Technology.
Investing in customer and safety
The 2026 financial year saw continued
investment in new aircraft, engine
maintenance, interior product rolled
out on our long-haul aircraft, our world
leading app, self-service check-in,
boarding and rebooking processes.
Total capital expenditure of $1.2 billion in
2026 compared to $780 million in 2025.
Safety is the foundation of everything
we do and our utmost priority. We were
proud to be recognised as AirlineRatings.
com’s World’s Safest Airline for 2025
and, in 2026, to receive its Seven Star
Plus safety rating. It is a recognition that
belongs to our people across the airline.
A thank you
After six years at the helm as Chief
Financial Officer, Richard Thomson
leaves the company in August, after
the full year results. Richard has made
a major contribution during his tenure,
not least of all including the post-Covid
recovery, the recapitalisation of the
airline, the response to fleet availability
challenges, and our response to the
latest fuel crisis. His passion for the
airline, our people and our purpose has
been inspirational. Richard, thank you,
you will be truly missed.
New leadership
appointments and
operating model change
We appointed Kris Cudmore as Chief
Financial Officer on the 3rd of August.
As well as bringing significant aviation
and international experience, Kris
has a deep background in capital
allocation and cost management,
both from industry, as well as from
investment roles.
We split the Chief Operations Officer
(COO) role, and have appointed our
previous Chief Transformation Officer,
Mike Williams, to become COO-Tech
Ops (engineering and maintenance),
an area that has seen the largest cost
increase since pre-Covid.
We promoted Head of Airports, Kate
Boyer, to be COO-Ground and Flight
ops, with responsibility for rolling out
our must-win-programme of service
and schedule improvements while
reducing cost.
We hired Scott Wilkinson from Qantas,
where he spent over a decade in a
variety of commercial and product
leadership roles, as Air New Zealand
Chief Commercial Officer.
In conjunction with these appointments,
we have changed our operating model
so each of our business unit commercial
leaders now control their own
profitability, across domestic, short-
haul and long-haul, cargo and loyalty.
Don and Eden, Aircraft Engineers
84.0%
On-time performance

H2 2026 OTP, up 6.5pts
from 2025
$1.2b
Total capital expenditure
compared to $780m
in 2025
1. On-time performance (OTP) refers to ’A15’, which is an industry-standard measure of arrivals within 15 minutes of scheduled arrival time.
Air New Zealand Annual Report 2026
0809
Air New Zealand Group

Letter from the Chair and Chief Executive Officer (continued)
Middle East conflict
The Middle East conflict continues, and
we are operating in an unpredictable
environment with the risk of renewed
escalation elevated, and ongoing
implications for global trade including
fuel prices and supply.
For Air New Zealand, the primary
impact has been financial – namely,
volatility in jet fuel prices, freight costs
and insurance premiums. Although
global fuel supplies remained adequate,
uncertainty around shipping capacity
placed upward pressure on fuel prices.
Air New Zealand has maintained close
monitoring of developments throughout
the period and incorporated a range
of scenarios into its operational and
financial planning. When the conflict
in the Middle East escalated, we took
decisive action to adjust our capacity
and fares in response to a higher, more
volatile fuel price environment, while
doing everything we could to ensure
disruption to our customers was kept to
a minimum.
The impacts on our network continue
to be significant, and the airline remains
alert to the potential for disruption to
international aviation should conditions
deteriorate.
Leverage and Dividend
The airline’s balance sheet remains
sound. As at 30 June 2026, liquidity was
$1.6 billion and Net Debt to EBITDA was
3.8x, due to lower EBITDA and higher
net debt compared to the prior year.
We are focused on driving earnings
improvement to bring this back to within
our target range of 1.5x to 2.5x.
In April 2026, Moody’s affirmed Air New
Zealand’s investment-grade credit rating
of Baa1, albeit with the outlook changing
from stable to negative. Air New Zealand
has one of the highest credit ratings
in the global aviation industry and,
consistent with our Capital Management
Framework, we are committed to
maintaining our investment grade rating.
We recognise the importance of dividends
to our shareholders and appreciate
their patience as we work to restore the
financial performance of the airline.
The Board has not declared a dividend,
in line with our Capital Management
Framework which requires positive net
profit after taxation.
Outlook
Prior to the conflict in the Middle East,
the airline would have expected, in its
central case, to return to profitability in
We have new Boeing 787 aircraft arriving
in the 2027 financial year, along with
the recovery of many of our aircraft
that had been grounded due to engine
issues. This significant increase in
aircraft availability is set to happen while
travel volumes are depressed due to the
Middle East fuel crisis, and therefore we
will not immediately see as much profit
improvement as we would expect.
The airline expects the 2027 financial
year to be both a transition and recovery
year, with operational performance
continuing to improve even as elevated
fuel prices weigh on profitability. We also
expect the range of initiatives we have
implemented in response to the currently
elevated fuel cost will contribute to
offsetting a larger portion of the elevated
cost of fuel compared to the prior year.
Despite uncertainty in the global
environment, we are seeing encouraging
inbound demand, with strong forward
bookings into New Zealand. That is a
positive signal for tourism and for New
Zealand more broadly. New Zealand
remains a highly desirable destination,
and our investment in our onboard
product and unique Kiwi hospitality
puts Air New Zealand in a strong
position to bring more international
visitors to our shores.
We remain focused on executing our
strategic priorities, improving financial
performance and positioning the airline
for long-term sustainable returns.
Closing
This has been another demanding
year, and the response from our people
across Air New Zealand this year has
been outstanding. We are incredibly
proud of the commitment, resilience
and care our people have shown for our
customers and for each other.
We are proud to continue to be one
of New Zealand’s most attractive
employers as recognised by Randstad
New Zealand’s Employer Research.
Our strong focus on our customers
remains paramount. We will continue
to work hard to maintain and improve
our operational performance, while
delivering the exceptional product
and service experience our customers
expect from Air New Zealand. Our
sincere thanks to our customers for
choosing to fly with us.
To our shareholders, thank you for
your continued support and confidence
in the airline.
We are also grateful to our leadership team
and Board for their hard work, guidance
and support throughout the year.
There is more work ahead, but we enter
the new financial year with a clear strategy,
a stronger operation and confidence in
the future of Air New Zealand.
Dame Therese Walsh
Chair
Nikhil Ravishankar
Chief Executive Officer
the 2027 financial year, reflecting the
underlying improvements in our business.
Given the continued uncertainty
surrounding the conflict, the volatility of
jet fuel prices, and with jet fuel currently
around US$150 per barrel, the airline
is not in a position to provide earnings
guidance for the 2027 financial year at
this time.
As we look towards 2027, fuel prices
remain the most significant external
consideration for profitability. We’re also
mindful that the cumulative effects of a
more subdued economic environment
in recent years continue to influence
demand and costs.
The direct impact of the engine issues
is now reducing significantly as aircraft
return to service. However, some of the
additional fleet capacity and associated
commitments put in place to manage
the engine disruption will take time to
unwind. At the same time, the return of our
aircraft is coinciding with lower capacity
requirements arising from the fuel crisis,
meaning the earnings benefit from
recovering aircraft availability will not be
immediate. We estimate a financial impact
of between $70 million to $90 million in
2027 from a combination of continuing
lease commitments related to engine
issues and available aircraft not able to be
fully utilised due to the fuel crisis.
We also expect engine maintenance
costs to be $50 million to $100 million
lower in 2027 than in 2026.
Lastly, aviation system costs continue
to rise well above inflation, with airport
charges expected to increase by upwards
of 10 percent at some ports during the
2027 financial year, while Auckland
Airport charges are expected to rise very
substantially in 2028 as part of its five-
yearly price-setting process.
11
Air New Zealand Group
10
Air New Zealand Annual Report 2026

Business Highlights
Christchurch routes expansion
to boost South Island growth
Air New Zealand continued to strengthen
Christchurch as a key South Island
gateway during 2026, announcing
new domestic and international routes
to increase connectivity and support
tourism and economic growth.
Three new non-stop services to
Singapore, Tokyo and Perth will launch
from late October 2026, providing more
direct connections between the South
Island and key markets across Asia,
Australia and beyond. The Singapore
service will complement Singapore
Airlines’ existing flights, providing
greater choice and onward connectivity
across Asia and Europe.
A new seasonal Christchurch–Rarotonga
service launched in May, adding around
18,000 seats through to October, while
new services to Adelaide and Hamilton
further expanded Christchurch’s
connections across the Tasman and
within New Zealand.
Together, the new routes represent
a significant expansion of Air New
Zealand’s Christchurch network, giving
South Islanders more direct travel
options and making it easier for visitors
to start their New Zealand journey in the
South Island.
More capacity between
Auckland and Singapore
Air New Zealand and Singapore Airlines
are also expanding their joint network
to increase capacity into Auckland,
reflecting the growing demand for travel
between New Zealand and Singapore,
as well as key connecting markets.
Interline partnership strengthens
regional connectivity
Air New Zealand and Air Chathams
announced a new interline partnership to
give travellers easier access to and from
the Eastern Bay of Plenty via Whakatāne.
Customers can now book a single
domestic ticket that combines
Air Chathams and Air New Zealand
services for travel, complete with
checked-through baggage, meaning
smoother connections for journeys
such as Whakatāne to Queenstown or
Christchurch to Whakatāne. The interline
partnership with Air Chathams is set to
expand to Whanganui and the Chatham
Islands this year.
Air New Zealand named first
international airline for Western
Sydney International Airport
New services to Western Sydney
International Airport (WSI) commence
from 26 October 2026, strengthening
the airline’s network across the Tasman
and providing customers with another
gateway into Sydney. Flying directly into
Western Sydney opens up a catchment
of more than 2.5 million people,
including a significant New Zealand
community, and supports stronger
business and tourism links between
Australia and New Zealand.
Continuing to redefine the future
of long-haul travel
The airline’s world-first Economy
Skynest™ launched in April, with
bookings open from mid-May. Economy
Skynest™ will be onboard the airline’s
newly retrofitted Boeing 787 Dreamliner
aircraft from November, initially operating
on the Auckland–New York route.
Designed specifically for the realities of
ultra long-haul travel to and from New
Zealand, Economy Skynest™ features
six lie-flat pods in a bunk-style layout
between the Economy and Premium
Economy cabins, giving customers
the opportunity to book a dedicated
four-hour rest during their flight.
A comprehensive communications
campaign at launch resulted in over
11 billion impressions across global
media and social platforms, with one in
three Americans in the New York area
aware of Economy Skynest™.
During the year, United Airlines, one
of the world’s largest airlines, also
licensed Air New Zealand’s Economy
Skycouch™ concept, reinforcing
Air New Zealand’s reputation as a leader
in aviation innovation.
Helping tourism and events
thrive across New Zealand
Air New Zealand strengthened its
support for regional tourism with the
launch of its Regional Events Sponsorship
Programme.
Working with regional tourism
organisations, the programme supports
events across 20 domestic destinations
Air New Zealand flies to, with a particular
focus on encouraging travel during
shoulder and off-peak periods. Selected
events receive tailored support such
as flights, marketing and promotional
activity, with a three-year commitment
designed to help them grow.
During 2026, events supported ranged
from The Spectacle running festival in
Nelson and Hamilton Arts Festival, to
Hokitika’s Wildfoods Festival, Savour
Northland, Hawke’s Bay’s Bridge Pa Wine
Festival, and the Tussock Country Music
Festival in Southland.
Koru: A new era of loyalty
In April 2026, the airline’s Airpoints™
programme transitioned to Koru – one
of the most significant evolutions of the
loyalty programme in nearly 30 years.
The new highly-anticipated top-tier,
Koru Black, was designed to recognise
Air New Zealand’s most loyal members
with an elevated level of recognition
and rewards.
Air New Zealand is proud to have
introduced a more rewarding
experience for our five million members
that feels simpler, more personal, and
unmistakably Kiwi. Koru builds on
everything members love about loyalty,
shaped and inspired by their feedback.
Hangar 4 strengthens
Auckland base
The airline opened Hangar 4 at
its Auckland maintenance base in
September 2025, marking a significant
investment in the airline’s infrastructure
and future resilience.
Designed to support the airline for
the next 50 years, Hangar 4 is the
largest single-span timber arch aircraft
hangar in the Southern Hemisphere.
The 10,000-square-metre facility
can accommodate a Boeing 787-9
Dreamliner and two Airbus A320/A321
aircraft at the same time, providing
greater flexibility as the fleet and aircraft
technology evolve.
13
Air New Zealand Group
12
Air New Zealand Annual Report 2026

Purpose
Te Pae Hou
Ambition
Ambition
Our Future
Enrich our country by connecting New Zealanders
to each other and New Zealand to the world
Resilient and
future fit
Customer
first
Targeted
growth
Shape
the future
Welcome as
a friend
Raise
the bar
Our priorities
How we show up
The world's most
respected airline
Empowered teamSustainable ecosystemEmpowering technology
Safety focused
Strong Foundations
Business Highlights (continued)
Our new Culinary Ambassador,
Josh Emett
Air New Zealand recognised for
taking Kiwi excellence sky-high
Air New Zealand continues to be
recognised globally as an award-
winning airline:
• Oceania’s Leading Airline and
Oceania’s Leading Airline Brand at
the World Travel Awards 2025
• AirlineRatings.com Third Best Airline
in the World Global Ranking 2025
• Forbes Travel Guide’s Innovation of the
Year for Economy Skycouch™ seats
• Asia Pacific CAPA – Centre for Aviation
Environmental Sustainability Award
of the Year for 2025
• APEX Best Overall Airline in the
South Pacific 2026
• AirlineRatings.com Seven Star PLUS
safety-rated airline, 2026
Air New Zealand rolls out
“Next Gen” Kiosks
The airline is rolling out new check-in
kiosks across New Zealand airports,
designed to deliver a faster, simpler
and more flexible airport experience.
Designed in-house, the new platform
has reduced average check-in times
from more than two minutes to just 37
seconds, with some transactions taking
as little as 18 seconds. The battery-
powered kiosks can be easily moved to
meet changing operational demands,
while frontline teams can service them
without specialist technical support.
Josh Emett joined as
Culinary Ambassador
Air New Zealand has partnered with
celebrated New Zealand chef Josh Emett,
one of the country’s most recognised
chefs and restaurateurs, as its new
Culinary Ambassador.
Emett will focus on showcasing New
Zealand produce, hospitality and
elevated cuisine across the Air New
Zealand premium dining experience.
He is known for his classic and
refined cookery and combining these
techniques with ingredients that define
New Zealand’s food culture. As part of
the new partnership, he will design a
selection of signature dishes to feature
alongside Air New Zealand’s existing
onboard menu across Premium
Economy, Business Premier™ and
Business Premier Luxe™, on all long-
haul flights out of Auckland and select
flights from North America.
In October 2025, management embarked
on a strategic review focused on restoring
profitability and generating attractive
shareholder returns. As our aircraft return
to service, the choices we make become
even more important. To succeed, we
need to be focused, disciplined, and
financially strong.
The outcome follows more than eight
months of work involving thousands of
Air New Zealanders who shared ideas,
challenged thinking and helped shape
what comes next for our airline.
In June 2026 we launched our new
strategy Te Pae Hou
|
Our Future.
Our ambition is to be The world’s most
respected airline.
Respect is not something you can buy.
It is something earned. To be respected
means being valued by our customers,
our people and our shareholders.
We will earn this through the three
priorities of our new strategy.
Our Strategy: Te Pae Hou
|
Our Future
15
Air New Zealand GroupAir New Zealand Annual Report 2026
14

Customer first
We will continuously improve the
fundamentals that customers rely on
every day while investing in genuine Kiwi
hospitality, experiences and products
that our target customers expect from us.
Importantly, we will not try to be
everything to everyone. We will serve
all customers well, but we will be more
deliberate about where we focus our
investment and effort.
• Safe, reliable and punctual
• Unique Kiwi service and products
• Deliver smarter, more relevant offers
What we are doing now
• Granular, clean-sheet schedule
implementation to enable reliable and
punctual operations
• Fine tune premium service, product
and lounges
• Investment in new aircraft and
interior product
• Further improve disruption
management
• Dual Koru lounge proposition
• Deliver transition to offer order / NDC
(Next Gen retailing)
• Shift from above-the-line to precision
marketing
1. Cost per available seat kilometres.
2. Relative unit economics of A321neo vs. A320ceo and of B787-9 vs. B777-300ER depends on sector flown and fuel price, among other factors.
Supported by our strong foundations
Empowered teamSafety focusedSustainable ecosystemEmpowering technology
• Reset organisational
structure to move at pace
and drive accountability
• Randstad New Zealand #1
most attractive employer
for three consecutive years
(2023 - 2025) and nine
times overall
• AirlineRatings.com Seven
Star PLUS safety-rated
airline, 2026
• Expectation to reduce
Well-to-Wake net
greenhouse gas emissions
from jet fuel by 25 to 30
percent by 2030
• Continue to advocate
for affordable domestic
aviation system and pricing
• Next Gen kiosk rollout
(Domestic)
• Continued self-service
growth
• AI enablement across
teams and functions
Our Strategy: Te Pae Hou
|
Our Future (continued)
Resilient and future fit
To succeed in a volatile environment,
we need an airline that can withstand
disruption, invest through cycles
and remain competitive in a rapidly
changing industry.
We will continue to improve our cost
competitiveness, build a path to
profitability for our regional network,
strengthen our balance sheet and invest
in the capabilities that will matter most
in the future.
We will invest where innovation delivers
better outcomes for our customers, our
people, New Zealand and the airline.
Where it doesn’t, we will simplify, stop
or redirect our effort.
• Cost transformation
•
Financially sustainable regional network
• Delivering on our capital management
metrics
What we are doing now
• Cost out and labour productivity
programmes
• Engineering and maintenance team
transformation
• Unwind of cost inefficiencies as
fleet returns
• New deliveries to drive superior
operating economics
• Rephase B787 aircraft deliveries
• Restore capital management metrics
post fuel crisis
• Advocacy and bilateral airport
negotiations
Targeted growth
We will grow where we have a genuine
advantage, where New Zealand benefits,
and where there is a credible path to
sustainable returns. That means making
deliberate choices about where we
deploy aircraft, capital and resources.
It means focusing on opportunities where
we can win rather than pursuing growth
for growth’s sake.
We will continue to support tourism,
trade, and economic development while
ensuring that our growth strengthens
the airline in the long term.
• Targeted, profitable network growth
• Loyalty transformation and partner
expansion
• Revenue diversification
What we are doing now
• Pivot to inbound premium leisure
growth
• New B787s and A321neos – fit for
mission
• Strengthen hub advantage and
alliance network
• Grow SME market share
• Optimise inbound tourism to
domestic network
• Regional connectivity and partnerships
• Maximise flight-adjacent revenue
growth
• Continue loyalty partner expansion
Delivered to date
84.0%84.59/14Up to 20%$94 million
2H 2026 OTP
(up 6.5pts on 2025)
2H 2026 Customer
Satisfaction
(up 0.9pts on 2025)
Boeing 787 retrofits
complete
Remainder to be
completed by
Nov 2026
CASK
1
efficiency
from new and
returning fleet
2
incremental
transformation
benefits delivered
in 2026
Additional $135 million
annualised cost
savings identified
16
Air New Zealand Annual Report 2026
17
Air New Zealand Group

Financial Commentary
Our Financial
Performance
Air New Zealand
reported a loss
before taxation of
$336 million for the
2026 financial year,
compared to a net
profit before taxation
of $164 million
1
for the
2025 financial year.
The net loss after taxation was
$242 million, compared to a net profit
after taxation of $108 million
1
for the
2025 financial year.
This result reflects modest capacity
growth, with ongoing fleet constraints
associated with global engine issues and
significantly elevated fuel prices in the
second half limiting the airline’s growth.
While revenue growth was pleasing,
the combined impact of these factors,
together with extra engine maintenance
costs due to where the Boeing 787 fleet is
in its lifecycle, unusually high unplanned
maintenance requirements, and
persistently high aviation system costs,
significantly impacted the result in 2026.
Revenue
Operating revenue for the year was
$7.0 billion, an increase of $261 million or
3.9 percent from $6.8 billion in the prior
year. Excluding the impact of foreign
exchange, operating revenue increased
2.7 percent.
Passenger revenue increased 4.8 percent
to $6.1 billion. The increase reflected
growth in capacity, passenger volumes
and improved yields. Revenue growth
was particularly driven by growth in
international short-haul (Tasman & Pacific
Islands) and long-haul international
networks, while domestic revenue was
broadly in line with the prior year.
Total Capacity (Available Seat Kilometres,
ASKs) increased 1.3 percent while
demand (Revenue Passenger Kilometres,
RPK) increased by 1.7 percent, resulting
in a load factor of 83.7 percent, up 0.3
percentage points on the prior year.
Revenue per Available Seat Kilometre
(RASK) increased 3.4 percent, while
RASK excluding FX and flexible travel
credit breakage of $11 million in 2026
(compared to $35 million in 2025)
increased 2.6 percent.
International long-haul capacity
decreased by 1.7 percent, mainly due
to aircraft availability during the year,
although, pleasingly, all Boeing 787
aircraft had returned from long-term
storage by year end, with some minor
residual engine availability risks, but
substantially reduced. Load factors
increased 1.1 percentage points to
82.8 percent as the demand decline of
0.4 percent was smaller than capacity
reductions. RASK increased by 7.5
percent with RASK excluding FX and travel
credit breakage increasing 6.1 percent.
International short-haul capacity
increased by 7.7 percent. However,
capacity growth outpaced demand,
which increased 6.0 percent, resulting
1. The 2025 result has been restated for the prior period adjustment to the end of lease provision (refer Note 27 of the 2026 Consolidated Group financial
statements for further information).
Hanna, Flight Attendant
19
Air New Zealand Group
18
Air New Zealand Annual Report 2026

Financial Commentary (continued)
Sales, marketing and other expenses
increased 8.4 percent to $822 million,
driven by higher commissions and sales
activity as well as wet lease aircraft costs
to support the network and schedule
while aircraft remained grounded due to
global engine issues.
Ownership costs were $847 million, an
increase of 9.3 percent on the prior year.
Net finance costs increased $31 million
to $79 million, primarily due to a reduction
in average cash on hand and therefore
lower interest income. Depreciation
increased $41 million to $768 million
as a result of investment in engine
maintenance, Boeing 787 cabin interior
retrofits, as well as the delivery of one new
leased Airbus A321 and one new ATR.
Overall, foreign exchange had a net
$40 million negative impact on the
Group result for the year.
Share of Earnings of Associates
Share of earnings of associates was
$41 million, an increase of $3 million
compared to the prior year, due to
supply chain improvements and strong
customer demand at the Christchurch
Engine Centre, partially offset by foreign
exchange movements.
Cash and Financial Position
Cash on hand at 30 June 2026 was just
under $1.0 billion, a decrease of $447
million compared to 30 June 2025. The
movement reflects capital expenditure
during the period, including engine
overhauls and pre-delivery payments
for upcoming Boeing 787 aircraft
deliveries, scheduled debt and lease
repayments, payment of the 2025 final
dividend and completion of the share
buyback. These outflows were partially
offset by operating cash inflows,
drawdowns under the new secured
revolving credit facility and the return
of restricted cash deposits.
Liquidity ended the year at $1.6 billion,
compared to $1.7 billion at the end of the
prior year, slightly above the target range
of between $1.2 billion and $1.5 billion.
Cashflow and Debt
Operating cash flow was $819 million,
compared to $940 million in the prior
year due to lower EBITDA, with strong
revenue growth offset by higher growth
in operating expenditure, mainly fuel
and maintenance.
Net debt is $1.9 billion at year end,
comparable to half year and up from
$1.1 billion in the prior year.
Net debt to EBITDA increased to 3.8x,
compared to 1.2x in 2025 and sits
above the airline’s target range of 1.5x
to 2.5x reflecting a decrease in EBITDA,
increased gross debt, and capital
expenditure during the year. Management
and the Board continue to closely monitor
Net debt to EBITDA but expect it to
remain elevated in the short-term until
earnings increase, and as investment in
aircraft, interiors and systems continue.
in load factors decreasing 1.4 percentage
points to 85.6 percent. International
short-haul RASK increased 0.5 percent
with RASK excluding FX and travel credit
breakage decreasing 0.1 percent.
Domestic capacity increased 0.5 percent
on the prior year. Demand increased 0.8
percent, with load factors increasing
0.2 percentage points to 83.1 percent.
Domestic RASK increased 0.3 percent
and increased 0.2 percent excluding FX
and travel credit breakage.
Cargo revenue was $484 million, a
decrease of $3 million or 0.6 percent,
from $487 million in the 2025 financial
year. Capacity increased during the year,
while demand grew at a slower rate,
resulting in lower load factors. Higher
yields were primarily driven by the
introduction of a fuel cost pass-through
mechanism.
Contract services, and other revenue and
income was $403 million, a decrease
of 3.4 percent from the prior year. The
decline was primarily due to $39 million
less compensation received from engine
manufacturers related to accelerated
maintenance requirements, partially
offset by higher contract services, lounge
and Koru membership revenue.
Expenses
Operating expenditure was $6.5 billion,
an increase of 11.8 percent on the prior
year, primarily due to the significant
increase in fuel price, together with
continued costs relating to engine
availability issues, and increased
maintenance costs during the year.
Reported cost per ASK (CASK)
increased 10.4 percent. Underlying
CASK, which excludes the impact of
fuel price and foreign exchange,
increased by 4.8 percent, primarily
driven by price increases and increased
maintenance costs.
Labour costs increased 1.9 percent to
$1,739 million, with wage rate increases
$ 7.0 b
Operating revenue
an increase of $261 million
or 3.9 percent on last year
$6.1b
Passenger revenue

4.8 percent on last year,
reflecting growth in capacity,
passenger volumes and
improved yields
$242m
Net loss after taxation
Compared to $108 million
net profit after taxation
last year
across the Group partially offset by the
absence of short-term incentive payments
accrued for the current financial year.
Fuel costs increased 17.1 percent in the
year to $1,738 million, the
single largest
contributor to the increase in
operating
costs during the year. Average jet fuel
prices increased from US$88/barrel
in 2025 to US$111/barrel in 2026,
increasing fuel costs by $209 million.
While fuel prices declined four percent
in the first half of the year compared to
the same period last year, this was more
than reversed by a sharp 58 percent
increase in the second half compared to
the same period last year. The impact of
higher fuel prices was partially offset by
favourable hedging movements.
Fuel consumption increased two percent
due to higher flying activity, resulting in
a $29 million increase in costs, while a
weaker New Zealand dollar increased
the cost by a further $16 million.
Aircraft operations, passenger services
and maintenance costs were $2,199
million, an increase of 13.9 percent on
the prior year.
This was significantly impacted by a
$144 million increase in maintenance
costs, reflecting unplanned maintenance
on short-term loan engines, the Boeing
787 thrust reverser overhaul programme,
and maintenance price increases.
Airport landing charges, mandated
passenger levies and air navigation
charges increased year-on-year at
significantly higher rates than inflation,
increasing costs by $83 million in 2026.
Georgia, Flight Attendant
20
Air New Zealand Annual Report 2026
21
Air New Zealand Group

June 2025 earnings
before taxation
$164m
Passenger capacity
$72m
- Capacity increased by 1.3 percent reflecting new narrowbody aircraft deliveries and the return to service of previously
grounded aircraft as well as deployment of a wet lease aircraft into the international network.
- Domestic capacity increased by 0.5 percent, driven by the return to service of some Airbus 321 NEO aircraft previously
grounded due to engine availability issues, partially offset by schedule consolidation in response to higher fuel prices.
- International short-haul capacity increased by 7.7 percent due to additional narrowbody flying following the delivery of
two new leased aircraft and the deployment of a wet lease aircraft.
- International long-haul capacity decreased by 1.7 percent due to a reduction in aircraft availability as a result of Trent
1000 engine issues and Boeing 787 cabin interior retrofits.
Passenger RASK
$159m
- Overall Group Revenue per Available Seat Kilometre (RASK) excluding FX and travel credit breakage increased by
2.6 percent. Loads increased by 0.3 percentage points to 83.7 percent.
- Domestic RASK excluding FX and travel credit breakage increased by 0.2 percent with load factor increasing 0.2
percentage points to 83.1 percent.
- International short-haul RASK decreased by 0.1 percent excluding FX and travel credit breakage with load factor
decreasing 1.4 percentage points to 85.6 percent.
- International long-haul RASK increased by 6.1 percent, excluding FX and travel credit breakage, with load factors
increasing by 1.1 percentage points to 82.8 percent. The increase reflected passenger demand declining at a slower
rate than the reduction in capacity arising from Boeing 787 availability constraints, together with strong demand for
premium product offerings.
Unused Flexibility
Travel Credits
($24m)
- Flexibility travel credits issued between January 2020 and September 2022 expired on 31 January 2026. Travel credit
breakage of $11 million was recognised in the current financial year, compared to $35 million in the prior year.
Cargo revenue
($4m)
- The impact of lower load factors, particularly on long-haul routes, was partially offset by increased capacity reflecting
the mix of aircraft deployed across the international network, together with higher yields associated with fuel price
cost recoveries.
Compensation income
($39m)
- Lower compensation income was received from manufacturers in relation to engine availability constraints, reflecting
a reduction in the number of grounded aircraft.
Contract services and
other revenue
$21m
- Higher ancillary income, including lounge and Koru membership, and third-party handling.
Labour
($32m)
- Higher labour costs due to wage inflation and operating activity partially offset by productivity initiatives and
lower incentive payments.
Fuel
($238m)
- The average fuel price, net of hedging and carbon costs, increased 14 percent compared to the prior year resulting in
an increase in costs of $209 million. Average jet fuel price increased by 26 percent during the year with a 58 percent
increase year-on-year in the second half. Consumption increased by two percent ($29 million) compared to an
increase in capacity of 1.3 percent.
Maintenance
($139m)
- Higher maintenance costs, driven by additional leased engines required due to availability constraints, as well as the
timing of maintenance checks and increased unplanned maintenance activity.
Aircraft operations and
passenger services
($115m)
- Higher costs reflected increased passenger levies and domestic landing charges.
Sales and marketing
and other expenses
($54m)
- Higher commissions and sales costs, together with $47 million of costs associated with a short-term aircraft wet lease.
Ownership costs
($70m)
- Lower investment income reflected reduced average cash balances. Depreciation increased due to new aircraft
deliveries, including additional leased aircraft to support operations amid engine availability constraints, capitalised
engine maintenance and investment in Boeing 787 cabin interiors.
Net impact of foreign
exchange movements
($40m)
- Hedging losses due to market movements partially offset by favourable movements on net operating revenue and costs.
Share of earnings
of associates
$3m
- Increase in share of earnings from the Christchurch Engine Centre due to improvement in supply chain and customer
demand offset by foreign exchange movements.
June 2026 loss
before taxation
$(336m)
The key changes in earnings, after isolating the impact of foreign exchange movements, are set out in the table below*:
* The numbers referred to in the Financial Commentary on the previous pages have not isolated the impact of foreign exchange.
Change in EarningsFinancial Summary
UNIT20262025
Operating revenue$m7,016 6,755
Passenger revenue$m6,129 5,851
Operating expenditure$m6,546 5,854
Labour$m1,739 1,707
Fuel$m1,738 1,484
Depreciation and amortisation$m768 727
(Loss)/Earnings before taxation$m(336)164
Net (loss)/profit after taxation$m(242)108
Basic and diluted (loss)/earnings
per share (cents)

cps

( 7.4)

3.2
Dividends declaredcps– 2.5
Dividends paid$m41 93
Net cash flow from
operating activities

$m

819

940
Net cash flow used in
investing activities

$m

(1,013)

(119)
Cash and cash equivalents
end of year

$m

989

1,436
To t a l a s s e t s$m9,097 8,731
Total liabilities$m7,414 6,803
Total equity$m1,683 1,928
Net debt to EBITDAtimes3.8x1.2x
23
Air New Zealand Group
22
Air New Zealand Annual Report 2026

Sustainability
We play a vital
role in connecting
New Zealand to
tourism, trade and
economic growth.
But the challenge facing aviation here and
around the world is how to preserve those
benefits while reducing environmental
impact and building resilience for the future.
Air New Zealand continues to reduce
emissions where we can, help with
the development of new solutions and
support the global energy transition as it
relates to aviation.
During the 2026 financial year, we
continued to take small steps to
support aviation’s transition to a lower-
emissions future. This included uplifting
Sustainable Aviation Fuel (SAF) from
Narita, San Francisco and Los Angeles
airports, and working across the aviation
industry to support the scaling of SAF in
a commercially sustainable way. A key
part of this work has been developing
our Scope 3 Sustainable Aviation Fuel
certificates (SAFc) programme. Our
third-party assured programme enables
other organisations to address their air
travel emissions within the aviation value
chain. By contributing financially to Air
New Zealand’s use of SAF, organisations
are joining a network that’s helping to
decarbonise aviation.
We have also established a new fuel
efficiency team tasked with coordinating
and accelerating fuel initiatives that help
reduce both fuel use and controllable
fuel costs.
This year we completed our first
purchase of compliance credits for
the Carbon Offsetting and Reduction
Scheme for International Aviation
(CORSIA), under which New Zealand has
a compliance obligation. We have also
taken initial steps to address our residual
emissions through carbon credits by
committing to purchase a small volume
of internationally verified, New Zealand
nature-based carbon removals.
Beyond our decarbonisation efforts, we
launched the Air New Zealand Regional
Event Sponsorship Programme to
help grow new and emerging events
that showcase the unique character of
our regions and encourage more New
Zealanders and visitors to explore them
throughout the year.
Finally, I’d like to acknowledge the
dedicated Air New Zealanders and our
partners who bring our sustainability
strategy to life. Being recognised with the
Asia Pacific CAPA – Centre for Aviation
Environmental Sustainability Award of
the Year for 2025 is a testament to the
important contribution you all make.
Ngā mihi nui
Kiri Hannifin
Chief Sustainability and Corporate
Affairs Officer
Our Sustainability Update
Our reporting approach
Data and commentary contained in this sustainability update relate to the financial
year ended 30 June 2026, unless otherwise stated. Air New Zealand’s organisational
boundary for sustainability reporting encompasses the companies listed on page 30
of Air New Zealand’s 2026 Climate Statement. Our website contains the following
supporting information:
View our Climate Statement;
Workforce Profile; Gender Pay
Report; and Metrics Table.
View our Sustainability
Framework.
Our people
Air New Zealand is committed to
creating a
workplace where our people
feel connected,
valued and empowered
to deliver their best. Our employee
engagement score in February 2026
was 68¹. This is one point lower than
our February 2025 score of 69. Our
belonging score improved to 67² in the
2026 financial year, up from 66 in 2025
and against our target of 69.
Engagement levels have remained stable
over the past few years. This reflects
the resilience of our team sentiment
despite a challenging environment,
including organisational change which
can influence team engagement. Against
this backdrop, maintaining a consistent
engagement score demonstrates
our ongoing focus on supporting,
connecting and developing our people.
To support team engagement and
strengthen our organisational culture,
the airline has continued to invest in
initiatives that build leadership capability,
team connection and organisational
pride. During the year, the airline drew on
our team’s extensive experience, insights
and pride in our airline to develop our new
s trategy, Te Pae Hou
|
Our Future. More
than 3,000 Air New Zealanders from
across the business participated in a series
of workshops, helping to build connection,
foster shared ownership and buy-in for
the strategy, and ensure it was shaped by
the people who will bring it to life.
Air New Zealand also introduced a new
leadership framework to more than
900 leaders across the organisation,
recognising the critical role leaders play in
shaping team experience and culture. This
established a common set of leadership
expectations and behaviours, supporting
leaders to create environments where
people can perform, develop and thrive.
A place where everyone belongs
Air New Zealand strengthened its
commitment to inclusion through
initiatives supporting the diverse needs
of our people. This included new support
for employees experiencing menopause
and perimenopause, including resources,
awareness campaigns and more flexible
uniform options. To mark International
Women’s Day, Flight NZ611 showcased
women across every part of aviation.
The airline also expanded support for
transgender, non-binary, takatāpui and
gender-diverse employees through
updated Gender Affirmation Guidelines
and paid Gender Affirmation Leave.
In addition, support for neurodivergent
team members was enhanced through
a neurodiversity survey, leader training
and conversation guides, and awareness
panels that are helping normalise
conversations and build greater
understanding across the airline.
People
|
He tāngata
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.
Our Future workshops
International Women’s Day
25
Air New Zealand Group
24
Air New Zealand Annual Report 2026

A continued focus on wellbeing
Air New Zealand’s ‘Mentally Healthy
Work’ programme focuses on the
proactive management of psychosocial
risk. This year, the programme has
included ongoing risk assessments
of specific business areas, enhanced
reporting, and increased the capability
and competency of our leaders to identify,
assess and manage the organisational,
social and environmental factors that may
impact our people’s mental health and
wellbeing at work. Additional support is
provided to our people through a variety
of tools and resources (such as the
Employee Assistance Programme, Peer
Support and a Wellbeing Hub).
Sustainability (continued)
People
|
He tāngata (continued)
Restoring Island Resilience Awards
In March 2026, Air New Zealand was
part of the Pacific Regional Invasive
Species Management Support Service
(PRISMSS) Restoring Island Resilience
Awards recognising Pacific non-
governmental organisations leading
practical action to manage invasive
species, restore ecosystems and
build local conservation capability.
The initiatives supported ranged from
predator trapping and invasive species
eradication to coral reef restoration, bird
monitoring and habitat recovery. This
work is critical to protecting biodiversity
and strengthening climate resilience
across the region.
Our supply chain
During the year, diverse supplier
3

spend increased to $19 million, up from
$18 million
4
in the year before. Capability-
building workshops and mentoring
initiatives were also delivered to help
increase diverse supplier participation
and build the capability required to
compete for larger opportunities. One
of the diverse businesses supported
through mentoring secured a three-year
contract with Air New Zealand during the
year, which demonstrates how mentoring
and capability development can help
local businesses grow and create clearer
pathways into our supply chain. This work
was recognised during the year, with
Air New Zealand named a finalist for the
Amotai Buyer of the Year Award 2025.
While we have made progress in increasing
our spend with diverse suppliers in
Aotearoa New Zealand, it remains a small
proportion of our total New Zealand
spend, highlighting the opportunity to
continue building supplier diversity.
Restoring Island Resilience Awards
Give Back Pack tree planting to support the
Papakura Stream Restoration Project
3. Air New Zealand currently defines diverse suppliers as Māori- and Pasifika-owned businesses, and social enterprises.
4. The 2025 financial year figure has been revised from that reported in the 2025 Annual Report following a data validation
check, which identified a supplier had incorrectly been classified as a diverse supplier.
Our communities
Give Back Pack
The Give Back Pack continued to give
back to the local environments and
communities we fly to across the year.
Air New Zealanders donated school
supplies to Women’s Refuge and
blankets to a range of charities across
the country, and planted 1,945 native
trees with Trees That Count. In addition,
to mark seven years of the Tiaki Promise,
they also picked up 250kg of rubbish
at three beach clean-ups in Auckland,
Wellington and Christchurch with Keep
New Zealand Beautiful.
Air New Zealand also supported global
sustainable procurement practices
as one of 11 airlines selected for the
International Air Transport Association
(IATA) Sustainable Procurement pilot,
and was one of the first airlines to
achieve certification.
Closer to home, we are creating more
opportunities for a broader range of
New Zealand businesses to participate in
our Property and Infrastructure projects.
Our standard construction contract
templates for projects over $2 million
now include provisions encouraging our
contractors to work with diverse suppliers
and seek opportunities for diverse
suppliers to compete for project work.
Through these initiatives, Air New Zealand
is taking small steps to help strengthen
local economies and contribute to a more
responsible and resilient aviation sector.
View our 2025 Modern
Slavery Statement.
Air New Zealand local Māori-owned
supplier, Aotea
Georgia and Rachel, Flight Attendants
$30M
$25M
$20M
$15M
$10M
$5M
0
20262022202520242023
0.6%
0.5%
0.4%
0.3%
0.2%
0.1%
0
Diverse supplier spend and percentage
of total New Zealand spend
Percentage of total New Zealand spend
Total diverse supplier spend
27
Air New Zealand Group
26
Air New Zealand Annual Report 2026

Sustainability (continued)
Planet
|
Te Ta i a o
Climate
2026 Climate Statement
Air New Zealand Limited is a climate
reporting entity under the Financial
Markets Conduct Act 2013 and is
required by this Act to prepare annual
group climate statements. This year,
we published our third Climate
Statement, in accordance with the
Aotearoa New Zealand Climate
Standards. The 2026 Climate Statement
provides information on the material
climate-related risks Air New Zealand
faces across the short, medium and
long-term, including how those risks are
governed, managed and reflected in our
strategy, metrics and targets.
The Climate Statement also sets out
the climate-related impacts currently
affecting the airline, the anticipated
impacts we expect in the future, and
the actions we are taking to position
the airline as we transition to a low-
emissions, climate-resilient future.
In addition, the Climate Statement sets
out our commitment to work towards
net zero carbon emissions from jet fuel
by 2050 (the 2050 Target). For our full
climate-related disclosure, please refer
to the 2026 Climate Statement. This
section should be read in conjunction
with that Statement.
View our 2026 Climate
Statement.
Snapshot of 2026 emissions
Air New Zealand’s business model
currently relies on fossil jet fuel. As
a result, we remain a large emitter of
greenhouse gases (GHG), including
carbon dioxide (CO₂) and other
GHG, expressed as carbon dioxide
equivalent (CO₂e).
For the 2026 financial year, Air New
Zealand’s total reported Scope 1,
Scope 2 and Scope 3 emissions were
4.4 million tonnes CO₂e, up 3.6 percent
from 4.2 million tonnes CO₂e in the
2025 financial year. Jet fuel continued
to account for the majority of the
airline’s GHG emissions.
Our Transition Plan
Air New Zealand has a Transition
Plan outlining its pathway to reduce
net emissions over time. Aviation is a
hard-to-abate sector. Achieving net
zero will require substantial industry
and technology change, investment,
partnerships and policy support.
While some actions are within Air New
Zealand’s control, many depend on third
parties, governments and corporate
customers taking action in the short-
and medium-term.
Our Transition Plan is organised around
four key decarbonisation levers: fleet and
network, SAF, operational efficiency, and
carbon credits. It includes short-term and
long-term components, reflecting the
greater degree of certainty we have over
the levers available to address emissions
in the short-term.
Short-term: 2030 Emissions
Guidance
5

Air New Zealand’s 2030 Emissions
Guidance provides an annual update
on our expected Well-to-Wake net GHG
emissions reduction from jet fuel
6
.
Well-to-Wake emissions include
emissions from jet fuel production,
distribution and combustion in flight.
We expect to reduce our Well-to-Wake
net GHG emissions from jet fuel by
25 to 30 percent by 2030, compared with
a 2019 financial year baseline. This is a
revision from the 20 to 25 percent range
communicated in 2025 and reflects
revised assumptions related to fleet
and network, which reduce fuel use and
gross emissions, and a higher anticipated
Carbon Offsetting and Reduction Scheme
for International Aviation (CORSIA)
compliance obligation, which increases
the volume of carbon credits the airline
expects to purchase.
Long-term: Illustrative roadmap
to the 2050 Target
5
Air New Zealand has committed to work
towards net zero carbon emissions from
jet fuel by 2050. An illustrative roadmap
shows a central case scenario for how
the airline could potentially transition to
meet our 2050 Target. It is a central case
scenario based on the airline’s view of one
possible net decarbonisation pathway
from 2031 to 2050, and is accompanied
by other low and high pathways that
reflect a range of potential outcomes
7
.
Emissions snapshot 2026
Scope 3
26%
1.1 million tCO₂e
62% is from fuel-
and energy-related
activities;
25% is from purchased
goods and services
11% is from capital goods
2% is from remaining
categories
Scope 2
<0.1%
0.002 million tCO₂e
Scope 1
74%
3.2 million tCO₂e
99.9% is from jet fuel
90%
of Air New Zealand’s
total reported GHG
emissions relate
to jet fuel
5. The 2030 Emissions Guidance and the illustrative roadmap to the 2050 Target are based on different modelling approaches and use a different scope of emissions. The 2030 Emissions
Guidance modelling primarily references internally developed assumptions and covers a larger proportion of Air New Zealand’s emissions from jet fuel (Well-to-Wake jet fuel CO₂e emissions,
including SAF); whereas the illustrative roadmap to the 2050 Target is developed with greater reference to external assumptions and covers a smaller proportion of the airline’s jet fuel emissions
(Tank-to-Wake CO₂ emissions for fossil jet fuel and Well-to-Wake emissions for SAF, hydrogen and electric propulsion if applicable). This is in line with the International Air Transport Association
(IATA) 2050 net zero target scope.
6. The 2030 Emissions Guidance has not been developed with reference to an external target or methodology aligned to a particular global warming pathway. Despite this, the 2030 Emissions
Guidance is a reference point for tracking near-term decarbonisation progress under the Transition Plan to the 2050 Target.
7. The roadmap is illustrative, not predictive, and is not a guarantee or forecast of future performance. Air New Zealand intends to update the roadmap annually in its Climate Statement as data,
technology, policy and market conditions evolve.
8. The actual combination of lever contributions may vary and it is possible that they will be outside the ranges indicated. The underlying modelling has been updated using revised
assumptions. The outcome of this modelling is that the estimated contribution ranges for each decarbonisation lever remain consistent with those disclosed in the 2025 financial year.
9. Residual emissions refer to emissions that remain after other reductions have been accounted for and that cannot be addressed through other levers under the Transition Plan
due to technological, cost or feasibility constraints.
Figure 1 shows the expected contribution of SAF
under the central case. The airline also models low
and high cases which indicate this lever could deliver
anywhere within a range of 40 to 67 percent of the
airline’s emissions reductions in 2050.
Figure 1 shows the expected contribution of
Fleet and Network to emissions reductions under
the central case. The airline also models low and
high cases which indicate this lever could deliver
anywhere within a range of 10 to 19 percent of the
airline’s emissions reductions in 2050.
Figure 1 shows the expected contribution of
Operational Efficiency to emissions reductions under
the central case. This lever is currently expected to
deliver around 2 percent of the emissions reduction
in 2050 in all cases.
Figure 1 shows the expected volume of residual
9

carbon emissions to be addressed by Carbon Credits
to support achievement of the remainder of the 2050
Target under the central case. The airline also models
low and high cases which indicate this lever could
address anywhere within a range of 11 to 48 percent
of the airline’s carbon emissions in 2050.
Air New Zealand’s illustrative roadmap to the 2050 Target
(from 2031-2050)
Target net zero carbon emissions by 2050
Million tCO₂
Financial Year
7
6
5
4
3
2
1
0
2050
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2019 emissions
Potential net
carbon emissions
Potential business-as-usual
carbon emissions
Potential gross
carbon emissions
Operational EfficiencySAFFleet and Network
Carbon Credits
Figure 1: The central case to the 2050 TargetFigure 2: Indicative low and high cases
8
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Sustainability (continued)
10. 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.
11. Previously called Project Green.
12. All SAFc have been retired on behalf of Air New Zealand.
13. In addition, 4,459 tonnes of carbon credits were purchased by VECP participating customers in financial year 2026. This was made up of customers
contributing to the VECP before the August 2025 changes were made (when half of a customer’s contribution went to carbon credits instead of SAF) and by
customers participating in our VECP on an ongoing basis through storefronts which have not converted to selling SAFc. All carbon credits have been retired
on behalf of Air New Zealand.
Planet
|
Te Taiao (continued)
Circular Economy
This year, Air New Zealand sent 1,012
tonnes of domestic waste to landfill
(a decrease of 29 tonnes from last year)
and diverted 47 percent of total waste
from landfill
10
. We recycled 702 tonnes
of waste (compared to 748 tonnes in the
2025 financial year), and composted 195
tonnes of waste (compared to 176 tonnes
in the 2025 financial year).
We continue to work with our team,
suppliers and industry partners to
transition from a waste management
approach to a stronger focus on waste
prevention, design, process improvement
and cost efficiency.
We’re also working on reducing our
international inflight biosecurity waste,
including working with LSG Sky Chefs
and the Ministry for Primary Industries
(MPI) to investigate the
expansion of
our Back on Board initiative
11
to enable
a greater range of unused shelf-stable
products to be reinjected
onto flights
at our Auckland, Christchurch
and
Wellington ports. The expansion is
expected to go live in the 2027 financial
year and is forecast to reduce both
waste and costs.
We’ve also progressed implementation
of our circular economy clause into our
standard supplier agreement template,
providing a more robust framework for
collaboration with product and service
suppliers on circularity and innovation
opportunities, including waste reduction,
responsible materials use, packaging
minimisation and end-of-life stewardship.

View our 2026 Metrics Table
for an update on our waste
targets and progress.
Riwai Rangihuna, Aircraft Service Agent
Customer contributions
In August 2025, changes were made
to the airline’s Voluntary Emissions
Contribution Programme (VECP)
available to retail customers through the
Air New Zealand website. For the majority
of customers who participate, half their
contribution now goes towards SAF and
the other half goes to our partner, Trees
That Count, to support native restoration
projects around New Zealand. In the
2026 financial year, customers opting in
to our VECP purchased 1,342 tonnes of
Scope 3 SAFc
12
and enabled the planting
of 73,606 native trees through Trees
That Count, supporting positive
outcomes for biodiversity and
communities across Aotearoa New
Zealand
13
. Of bookings made through
online storefronts where the VECP
is available, 2.1 percent contributed
to the programme, a decrease of 0.5
percentage points on the year prior.
The number of corporate, government,
and cargo customers on our emissions
reporting platforms increased to 385 this
year, up 45 customers on the year prior.
The platforms provide visibility of air
travel emissions estimates including by
route and seat class where applicable.
Motukauri Whakaora, a restoration project VECP customers support
Fleet and network
Decisions we make about our network
and the fleet used to fly that network will
significantly influence Air New Zealand’s
future emissions.
We continue to expect that fuel-
efficient conventional aircraft will play
an important role in reducing gross
emissions over time. However, delivery
timing remains subject to external factors
such as aircraft and engine availability,
supply chain constraints, as well as
internal factors including the airline’s
financial position.
In the 2026 financial year, the airline took
delivery of one leased Airbus A321neo
and one owned ATR72-600, and there
were no fleet retirements.
Air New Zealand also conducted a
four-month technology demonstrator
programme with BETA Technologies,
leasing and testing an early-production
ALIA CX300 aircraft in partnership with
the Civil Aviation Authority, as well as
Hamilton, Wellington and Marlborough
airports. This programme will not reduce
Air New Zealand’s carbon emissions,
as it was intended as a demonstration
of potential uses for Next Generation
Aircraft (NGA). Instead, it helped to build
collective, practical understanding of the
operational, infrastructure, training and
certification requirements associated
with novel propulsion aircraft.
Sustainable Aviation Fuel
The availability of, and access to, SAF
at commercially viable prices remains
a material climate-related transition
risk for Air New Zealand. As with most
airlines, SAF is expected to play a critical
role in our long-term Transition Plan. In
the short-term, we have set an ambition
to uplift 10 percent of our jet fuel as SAF
by 2030. While this 10 percent ambition
is necessarily subject to a range of
dependencies outside the airline’s
direct control, including global SAF
market developments and commercial
conditions, achieving this ambition
remains a key assumption within the
2030 Emissions Guidance.
In the 2026 financial year, Air New
Zealand uplifted 1.2 percent of its jet
fuel as SAF, down from 1.7 percent in
the 2025 financial year. This reduction
reflected our broader commercial
environment and cost pressures, which
have been exacerbated by higher fuel
costs due to the Middle East conflict.
We continued to build our Scope 3 SAFc
programme during the year. In addition
to reducing the SAF price premium for
the airline, supporting SAF uptake and
strengthening demand signals for SAF,
the programme also helps customers
to address their air travel emissions.
The Scope 3 SAFc programme sits
alongside a broader suite of customer
emissions initiatives, including the
Voluntary Emissions Contribution
Programme (VECP) for retail customers.
In the 2026 financial year, we achieved
independent assurance of our internal
SAFc processes and system and
worked with Toitū Envirocare to enable
emissions reductions from Air New
Zealand’s Scope 3 SAFc programme
to be recognised under Toitū’s Climate
Impact Programme. We also completed
a number of Scope 3 SAFc sales to global
and New Zealand organisations and
added a SAF contribution to employee
standby and business travel.
Operational efficiency
Operational efficiency refers to actions
that reduce fuel burn from existing
aircraft operations, both in the air and
on the ground. Lower fuel burn directly
reduces emissions.
This year, we established a cross-
functional team to accelerate fuel
initiatives across the airline, with a focus
on fuel efficiency, fuel management,
weight reduction and fuel security.
Examples of initiatives being progressed
include optimisation of alternate
airport requirements in flight planning,
seeking opportunities to increase the
use of airport ground power and pre-
conditioned air, and reviewing onboard
water carriage requirements.
Carbon credits
Air New Zealand expects to address all
of its residual emissions from jet fuel in
2050 with carbon credits.
In the 2026 financial year, we made
progress towards both our CORSIA
compliance obligations and the
voluntary carbon removals included
in our 2030 Emissions Guidance. This
included undertaking the airline’s first
CORSIA-eligible emissions unit (EEU)
transaction, signing a forward offtake
agreement with My Native Forest for
8,000 tonnes of internationally verified
New Zealand nature-based carbon
removals by 2030, signing a term sheet
with a second supplier for additional New
Zealand nature-based removals and
signing a term sheet with an international
engineered removals provider.
Together, these transactions are not
expected to significantly reduce Air New
Zealand’s net emissions in the short-
term. However, they enable the airline
to build practical experience in both
compliance and voluntary carbon credit
markets ahead of purchasing credits at
a larger scale.
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Nature
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. In the 2026
financial year, the Climate and Nature
Fund raised $7.4 million and contributed
to initiatives including supporting two
potential domestic SAF projects with
Seadra and LanzaJet, the lease costs of
the BETA ALIA CX300 electric aircraft,
supporting hydrogen fuel cell testing
at our Auckland Airport campus,
Department of Conservation (DOC)
biodiversity projects, the PRISMSS
Restoring Island Resilience Awards
and SAF costs.
Department of Conservation
Air New Zealand’s longstanding
partnership with DOC continued to
deliver biodiversity outcomes across
Aotearoa New Zealand during the year.
In addition to more than 40,000 hectares
of sustained predator control alongside
five Great Walks, we flew more than 280
threatened species and conservation
dogs, and enabled the full certification
of 41 pest and species detection dog
handler teams through our support of
the Conservation Dogs Programme.
The airline also supports DOC’s Bats
Beyond Borders Programme which
successfully trialled new advanced
GPS tracking technology on critically
endangered long-tailed bats for the
first time in Aotearoa New Zealand. The
Global Messenger system generated
fine-scale flight path maps, giving DOC
a much clearer understanding of bat
behaviour and habitat use. The data
collected will help improve management
plans for this critically endangered
species and develop tracking methods
for other small species.
Sustainability (continued)
Planet
|
Te Taiao (continued)Guardianship
|
Kaitiakitanga
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 2026 Climate Statement.
View our 2026 Climate
Statement.
Board of Directors
The Air New Zealand Board of Directors
has overarching responsibility for
sustainability, including climate-related
matters. During the 2026 financial
year, the Board considered a range
of key topics relating to the airline’s
Transition Plan (including the 2030
Emissions Guidance) and climate-related
disclosures, as well as carbon regulatory
compliance and modern slavery.
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. This year we farewelled
Tim Jackson, who stepped down from
the Panel, as well as Matteo Mirolo,
whose term with the Panel came to an
end. We are sincerely grateful to both
for the valuable contributions they have
made over the years. We’re taking time to
refocus the Panel, with new membership
expected in the 2027 financial year.
Conservation Dogs Programme
Long-tailed bat
Photo: Chris Hillock
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Guardianship
|
Kaitiakitanga (continued)
Helping to develop
a sustainable visitor
destination
As international tourism continues to grow,
with visitors spending $18.1 billion in the
New Zealand economy for the year ended
March 2025, Air New Zealand is focused
on helping develop Aotearoa New Zealand
as a sustainable visitor destination,
benefitting visitors, communities, the
environment and the economy.
During the year, we supported the Tiaki
Promise in partnership with Te Kāhui
Tautiaki, the governing body of Tiaki,
encouraging visitors and New Zealanders
to help care for Aotearoa New Zealand
through a range of awareness initiatives.
This included partnering with MPI on an
airline-first biosecurity video promoting
responsible food and waste disposal and
biosecurity awareness. We also expanded
promotion of the Tiaki Promise across
Air New Zealand channels, including
onboard content and Kia Ora magazine
assets highlighting the five Tiaki Promise
behaviours: Protect Nature, Keep New
Zealand Clean, Be Prepared, Drive
Carefully and Show Respect.
Backing our regions
Air New Zealand is also focused on
spreading the benefits of tourism across
our regions, which form the foundation
of Aotearoa New Zealand’s tourism
proposition. In July 2025, the airline
launched the Air New Zealand Regional
Event Sponsorship Programme to
support and scale up 20 new and
emerging events in the 20 regions we fly
to. Working in partnership with regional
tourism organisations (RTOs), the
programme supported events across
the 2026 financial year, spanning sport,
arts and culture, food and wine, and
music events. From The Spectacle in
Nelson to the Flavours of Plenty Festival
in Tauranga, these events encourage
more travel to our regions, particularly
during off-peak seasons, helping to
support local economies and stimulate
demand year-round.
We also partnered with RTOs and
airports to support tourism growth
across the country and encourage
dispersal beyond the main centres.
This year we worked with Destination
Queenstown, Southern Way, Nelson
Regional Development Agency,
Northland Inc and ChristchurchNZ
to showcase the diverse experiences
available across Aotearoa New Zealand.
We also worked with Hamilton and
Christchurch airports to celebrate the
launch of our jet service between these
ports, helping stimulate domestic
connectivity and regional visitation.
Sustainability (continued)
The Spectacle in Nelson
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Air New Zealand Group

Our Consolidated
Financial Statements
Directors’ Statement
The directors of Air New Zealand
Limited are pleased to present to
shareholders the Annual Report and
financial statements for Air New
Zealand and its controlled entities
(together the “Group”) for the year
to 30 June 2026.
The directors are responsible for
presenting financial statements in
accordance with New Zealand law and
generally accepted accounting practice,
which give a true and fair view of the
financial position of the Group as at
30 June 2026 and the results of the
Group’s operations and cash flows for
the year ended on that date.
The directors consider the financial
statements of the Group have been
prepared using accounting policies
which have been consistently applied and
supported by reasonable judgements
and estimates and that all relevant
financial reporting and accounting
standards have been followed.
The directors believe that proper
accounting records have been kept in
accordance with the requirements of the
Financial Markets Conduct Act 2013.
The directors consider that they have
taken adequate steps to safeguard the
assets of the Group, and to prevent and
detect fraud and other irregularities.
Internal control procedures are also
considered to be sufficient to provide a
reasonable assurance as to the integrity
and reliability of the financial statements.
This Annual Report is signed on behalf
of the Board by:
Alison Gerry
Director
Dame Therese Walsh
Chair
28 August 2026
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Air New Zealand Group