Air NZ 2026 Annual Shareholders' Meeting Materials

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

MARKET ANNOUNCEMENT

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


24 September 2026

Air New Zealand 2026 Annual Shareholders’ Meeting Materials


Please find attached to this announcement the Chair and CEO address, and the meeting
presentation, for the Air New Zealand 2026 Annual Shareholders’ Meeting which will be
held online today, Thursday 24 September 2026, at 2pm.

There is no new material information contained within the speeches or the presentation.

A link to the virtual meeting can be found here.

Further information including the 2026 Notice of Meeting and an online meeting guide are
available on the Company’s website.


Ends.



Jennifer Page
General Counsel & Company Secretary
jennifer.page@airnz.co.nz
+64 27 909 0691

For investor relations questions, please contact:
Julia Belk
Investor Relations Manager
julia.belk@airnz.co.nz
+64 21 2408997

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This presentation is given on behalf of Air New Zealand Limited (NZX: AIR and AIR030; ASX:
AIZ). The information in this presentation:
•is provided for general purposes only and is not an offer or invitation for subscription,
purchase, or a recommendation of securities in Air New Zealand.
•should be read in conjunction with, and is subject to, Air New Zealand’s 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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Chair’s address
CEO’s address
Questions on 2026 performance
Resolutions and voting
General questions
Order of meeting

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Laurissa Cooney
Alison Gerry
Dame Therese Walsh (Chair)Neal BarclayDean Bracewell
4
Larry De Shon
Claudia Batten
Board of Directors

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Virtual meeting platform and online assistance
Help
Number
Voting
Card
Question
Box

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Chair’s
address
Dame Therese Walsh – Chair

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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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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

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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.
However, as mentioned at the 2026 year end result, there remains uncertainty surrounding the Middle East conflict, and in fact the
volatility of jet fuel prices has escalated further since then. Jet fuel prices have increased from around US$150 per barrel at the end of
August to currently around US$170 per barrel – and this fluctuates by the day. As a result, the airline is not in a position to provide
earnings guidance for the 2027 financial year at this time.
But we are controlling what we can control and while the major factors that impacted the 2026 financial result are expected to have
some impact in the 2027 financial year, these will all be to a lesser extent:
•Disruption from engine availability is reducing substantially as aircraft return to service, with a financial impact of between $70
million to $90 million in 2027 from residual committed costs, compared with $190 million impact in 2026.
•Maintenance costs are expected to be $50 million to $100 million lower in 2027 than in 2026.
We are also 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.
The airline expects the 2027 financial year to be both a transition and recovery year, with operational performance continuing to
improvedespite elevated fuel prices weighing on profitability. We also expect the range of initiatives implemented in response to higher
fuel costs to offset a greater proportion of the impact compared with the prior year.
We remain focused on executing our strategic priorities, improving financial performance and positioning the airline for long-term
sustainable returns.
2027 Outlook

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CEO’s
address
Nikhil Ravishankar – CEO

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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)
11 / 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 2026 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
•On time performance improved further in August, with
85.3% of flights arriving within 15 minutes of schedule – up
from 83.1% in July and 81.8% for the same time last year.
This is well above the global average for airline on-time
performance which was 73.1% in August.
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

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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

1515
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.
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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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•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. 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

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Questions on 2026 performance

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Resolution 1
Re-election of Dean Bracewell
Resolution 2
Re-election of Laurissa Cooney
Resolution 3
Election of Robert McDonald
Resolution 4
Election of Campbell Wilson
Resolutions for voting

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Proxy and Postal Votes
ForAgainstAbstainDiscretion
Resolution 1:
Re-election of Dean Bracewell
2,081,030,532
97.40%
43,964,629
2.06%
3,213,315
-
11,512,113
0.54%
Resolution 2:
Re-election of Laurissa Cooney
2,076,429,436
97.22%
47,981,449
2.25%
3,812,859
-
11,496,845
0.54%
Resolution 3:
Election of Robert McDonald
2,118,983,346
99.18%
6,068,219
0.28%
3,126,401
-
11,542,623
0.54%
Resolution 4:
Election of Campbell Wilson
2,120,418,999
99.22%
5,064,395
0.24%
2,693,216
-
11,543,979
0.54%
Proxies and postal votes received
As at 23 September

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Re-election of Dean Bracewell
Resolution 1

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2121
Re-election of Laurissa Cooney
Resolution 2

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Election of Robert McDonald
Resolution 3

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Election of Campbell Wilson
Resolution 4

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General Questions

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Supplementary
Information

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30 Jun 202630 Jun 2025
Capital management targets
Gross debt
1
(3,188)(2,838)
Cash, restricted deposits and net open
derivatives
1
1,2641,758
Net debt
1
(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)
2
(7.8)%7.3%
ROIC above pre-tax WACC
Total liquidity
1
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)
3
1.In $ millions.
2.Operating earnings before finance costs and taxation divided by the average capital employed.
3.NPAT is calculated on a rolling twelve-month basis.
Key capital management metrics
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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

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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%

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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%

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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%)

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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%

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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

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Resources
Contact information
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airnewzealand.co.nz
ANNUAL SHAREHOLDERS’ MEETING
THURSDAY 24 SEPTEMBER 2026

CHAIR’S ADDRESS

As we take a moment to reflect on the past year, I want to start by acknowledging the
strength and determination of the Air New Zealand team.
2026 was a year that asked a lot from Air New Zealanders. As highlighted in our 2026
annual results – as we come to the end of dealing with engine availability disruption, we
were faced with the Middle East conflict and the unprecedented surge in fuel prices which
impacted our operations and our financial performance. But our team took decisive and
immediate action, and adjusted operations, schedules, capacity and fares to mitigate as
much of this impact as possible – for our customers, our operations, and our financial
resilience.
Once again, our people delivered. Through persistent disruption, they remained committed
to our customers, to each other, and to the success of this airline. I want to sincerely thank
each and every one of them for their efforts. Their efforts have delivered significant
improvements in our customer satisfaction and on-time performance – and that matters to
our customers.
Financially, FY26 was a very difficult year. Our financial performance was significantly and
adversely impacted by high fuel prices. This came on top of the ongoing impact of engine
availability issues, and maintenance and aviation system cost pressures. And I will address
these financial impacts shortly.
Standing back from financial performance specifically, I would like to call out five
operational milestones during the year in review.
First, the operational performance of the airline, in terms of reliability and punctuality,
improved significantly throughout the year – with on-time performance in the top-decile
amongst global comparable airlines. This is the result of an extraordinary effort from Air
New Zealanders across the business.
Second, our team has worked relentlessly with Rolls-Royce and Pratt & Whitney to return
grounded aircraft to service earlier than expected, and aircraft availability improved 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 than we have had in the last 2-3
years.
Third, we continue to make progress on the things we can control and are accelerating the
cost improvement at pace. We have delivered $94 million of incremental transformation
benefits during the year. And we have now identified an additional $135 million of
annualised savings including both direct and indirect costs, which will accrue from the 2027
financial year to improve our overall cost base and offset expected inflation. This is an
increase from the $100 million identified annualised cost savings previously announced in
May and this work is ongoing.

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And fourth, we have reset our strategy around three strategic pillars; customer first,
targeted growth, and resilient and future fit, to deliver sustainable returns to shareholders
over time.
In addition, aviation system costs inflation continues to impact our financial performance.
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. However, remedying this will be a longer journey and we continue to
advocate for an affordable aviation system for all New Zealanders.
We recorded a loss before taxation of $336 million, compared with earnings before taxation
of $164 million in the prior year, and slightly better than the guidance range provided to the
market in May 2026.
Approximately $465 million of the profit before tax impact came from three areas, namely:
• the ongoing global engine availability issues, which had an impact, net of
compensation, of approximately $190 million;
• fuel price, which had an adverse impact of $135 million in the year. From an initial
fuel price impact of $328 million, our hedging protection recovered $123 million of
this cost increase, and through adjusting capacity and fares in response we have
been able to mitigate about a third of this post-hedged fuel impact; and
• An increase of $139 million in maintenance costs excluding FX, driven by additional
lifecycle maintenance and maintenance costs on leased engines associated with
additional engines leased to maintain capacity and schedules during the engine
availability issues.
Our attention is firmly on mitigating these external pressures as much as possible,
controlling what we can control today, and improving the commercial and financial pathway
for the company.
We carried around the same number of passengers as last year, at 16 million passengers,
while passenger revenue increased 4.8% to $6.1 billion. While RASK increased 3.4% it
was not enough to cover the significant increase in fuel cost, with about 30% of increased
fuel price recovered through mitigating capacity and fare activities from March through to
June.
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.
Capacity increased 1.3%, and while above prior year, second half capacity was about 5%
below our original plan as we adjusted to the sharp increase in jet fuel price from March.
Our customer and operational metrics continue to move in the right direction. Our on-time
performance increased to 84.0% in the second half of the year, up from 77.5% in 2025,
and in the global top-decile amongst comparable airlines.

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Our rebranded Koru loyalty programme and new multi-tier membership are resonating well
with our customers, with 5.4 million loyalty members, up 8.3 percent on 2025.
Safety will always be our utmost priority. We are proud to be awarded AirlineRatings.com’s
Seven Star Plus safety rating in 2026.
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.
However, as mentioned at the 2026 year-end result, there remains uncertainty surrounding
the Middle East conflict, and in fact the volatility of jet fuel prices has escalated further since
then. Jet fuel prices have increased from around US$150 per barrel at the end of August
to currently around US$170 per barrel – and this fluctuates by the day. As a result, the
airline is not in a position to provide earnings guidance for the 2027 financial year at this
time.
But we are controlling what we can control and while the major factors that impacted the
2026 financial result are expected to have some impact in the 2027 financial year, these
will all be to a lesser extent:
• Disruption from engine availability is reducing substantially as aircraft return to
service, with a financial impact of between $70 million to $90 million in 2027 from
residual committed costs, compared with $190 million impact in 2026.
• Maintenance costs are expected to be $50 million to $100 million lower in 2027 than
in 2026.
We are also 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.
The airline expects the 2027 financial year to be both a transition and recovery year, with
operational performance continuing to improve despite elevated fuel prices weighing on
profitability. We also expect the range of initiatives implemented in response to higher fuel
costs to offset a greater proportion of the impact compared with the prior year.
We remain focused on executing our strategic priorities, improving financial performance
and positioning the airline for long-term sustainable returns.
And with that, I will now hand you over to Chief Executive Officer, Nikhil Ravishankar,
This is Nikhil’s first Annual Shareholder Meeting as CEO. We are thrilled to have made an
internal CEO appointment for the next phase of Air New Zealand’s journey, and Nikhil has
hit the ground running, and done an excellent job in an extremely difficult and volatile
operating environment in the last 12 months.

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CEO ADDRESS
Tēnā koe Therese.
Tēnā koutou e ōku rangatira,
Ki ngā mana whenua, ki a tātou katoa. Ka nui te mihi.
Kia ora and good afternoon everyone.
When we announced Our Future in June, we set out three strategic priorities.
The first priority is putting Customers 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.
We have already rolled out simplified, granular, and airport specific scheduling across our
Domestic and Regional network, which means realistic turnaround times, and have
invested in both tooling and procedures for our frontline teams. In combination, these are
translating to significantly improved on-time performance. We are expanding this to our
Trans-Tasman, Pacific and long-haul networks to further improve reliability and punctuality.
We are investing in our service proposition and lounges grounded in our unique Kiwi
hospitality, improving disruption management and continuing to modernise the way we
market to customers and how they buy from and interact with Air New Zealand.
The second priority is Targeted Growth, including profitable network growth, transforming
our loyalty programme in line with industry leading practice, and thoughtfully diversifying
our revenue streams where opportunities exist.
This means winning on key customer segments across our network including inbound
premium leisure customers on our long-haul markets, leisure and VFR customers on our
short-haul network, and enterprise, SME and corporate customers on our domestic routes.
This priority leverages our new and retrofitted Boeing widebody and Airbus narrowbody
aircraft which are fit for mission, as well as strengthening our alliance networks,
transforming our loyalty programme, and expanding flight-adjacent revenue.
And third, Resilient and Future Fit. Removing cost and complexity, improving labour
productivity, transforming engineering and maintenance, developing a financially
sustainable regional network, unwinding the temporary inefficiencies created by fleet
disruption and delivering on our capital management metrics.
I will now go through each of these in turn.
The Customer First strategic initiatives we are putting in place are already delivering
benefits for our customers.
Our on-time performance increased from 77.5% in 2025 to 84% in the second half of 2026.
Customer satisfaction increased from 83.6 to 84.5.

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And controllable cancellations reduced from 2.2% to 1.3%.
Pleasingly, on time performance improved further in August, with 85.3% of flights arriving
within 15 minutes of schedule – up from 83.1% in July and 81.8% for the same time last
year. This is well above the global average for airline on-time performance, which was
73.1% in August.
These improvements matter to our customers – 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 consistently being in the top 5 airlines in the world for reliable and punctual
operations.
Under our second strategic priority, targeted growth, the demand picture across the
network in 2026 was mixed – but we are seeing solid inbound volumes.
Across Asia, overall passenger growth was flat on reduced capacity, but with higher
inbound passenger volumes, and pleasingly strong load factors, and improved revenue per
ASK.
North America also delivered strong inbound volumes on slightly higher capacity, although
outbound New Zealand sales remained softer, in part reflecting the weak New Zealand
dollar, resulting in flat passenger growth overall.
Tasman and Pacific Islands passenger volumes grew on strong capacity growth, supported
by strong inbound volumes out of Australia.
Passenger capacity and cargo volumes were impacted in the second half of the year across
all international markets, with capacity lower than planned in the second half, as we
managed capacity and RASK to mitigate the surge in fuel prices.
Domestic remains challenging. Passenger demand was down and the New Zealand
economy remained soft. We have been disciplined in matching capacity to demand and,
where appropriate, using yield to respond to the higher fuel environment.
More generally, we continue to see encouraging trends in product and cabin mix, with
Premium cabin revenue increasing by 14% and ancillary revenue by 12%.
Going forward – we are targeting sectors, destinations, and target markets to deliver
profitable growth. We have completed 11 out of 14 retrofits of our Boeing 787 fleet – and
the new interior product is resonating very well with customers. The remaining 787 fleet
retrofit will be completed by November this year, and the 777 cabin refresh fit out will be
completed in calendar year 2027.
And lastly, resilient and future fit.
We continue to make progress on the things we can control and are accelerating the cost
improvement at pace. In 2026 we delivered transformation initiatives generating an

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incremental $94 million of EBITDA benefit in 2026 against 2025. That has come from a
broad range of initiatives.
Further, we have now identified an additional $135 million of annualised savings including
both direct and indirect costs, which will accrue from the 2027 financial year to improve our
overall cost base and offset expected inflation.
In addition, we continue to work to build a financially sustainable regional network and
deliver against our capital management metrics.
It is well known that our operational and financial performance in the last few years has
been hindered by our constrained fleet capacity due to the engine availability issues and
resulting grounded aircraft.
At the peak of the engine disruption, five of our 14 Boeing 787s, and six of our Airbus A320
and A321neo aircraft were grounded; almost 20% of our total jet fleet. This created
disruptions for our customers, operational complexity and significant financial cost.
We have carried the fixed costs of aircraft, people, infrastructure and systems and we
incurred additional costs through leased aircraft and engines to protect the network and
schedule. While we received some compensation from engine partners, this was not
enough to offset the financial costs incurred.
Today the picture is very different.
The last 787 was returned from long-term storage in June – an incredible milestone and a
huge thank you to our teams around the business who persevered to make this happen
sooner than expected.
And on the narrow-body fleet, we expect the last of these to return to service during
calendar year 2027.
There are still residual risks to availability through 2027, and we are still carrying the cost
of temporary leased aircraft and engines in the system. It takes time to bring returning
aircraft fully into the selling and operating schedule.
We are in continuous discussions with both Rolls-Royce and Pratt & Whitney on extending
compensation.
While risk remains, the fundamental point is that the fleet constraint which has shaped this
airline over the last three years is materially reducing, and the airline enters the 2027
financial year in a considerably more reliable fleet position. This gives us more options
around capacity, network deployment and operating efficiency.
A key decision we have taken is to smooth the aircraft investment profile in the near term
and to bring it down medium term.
Following the most recent delays of two Boeing 787s from earlier this year to later this year,
and a quicker than expected return of grounded aircraft, we are in negotiations with Boeing
to further rephase the delivery profile to smooth capital investment and realign fleet
deliveries with our targeted capacity growth.

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In the 2027 financial year, given the additional aircraft capital investment, we do expect to
see incremental depreciation of between $110 million to $130 million compared to 2026,
but this depreciation profile will increase at a measured pace with the smoothing of aircraft
capex investment.
We want the right aircraft, but we also want them at the right time.
In closing, this has been another demanding year for Air New Zealand, and our people
have continued to rise to the challenges we have faced. I am incredibly proud of the
commitment, professionalism, and care they have shown for our customers and for each
other.
We have a lot of work to do to counter the impact of the fuel crisis, but we enter the new
financial year with a clear strategy, a stronger operation and confidence in the future of Air
New Zealand.
Our customers remain at the heart of everything we do. 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.
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.
Thank you to those investors who have stuck with us over the last six years of crises and
continue to support Air New Zealand during this current fuel crisis. It is worth reiterating
that, prior to the Middle East conflict, the airline would have expected, in its central case,
to return to profitability in the 2027 financial year, controlling what we can control, and
reflecting the strong underlying improvements that we continue to deliver.
Thank you. I will now hand you back to Therese to take questions on the 2026 performance
and to chair the formal part of the meeting.