Air New Zealand Investor Update (Op Stats) – January 2017

Contents o January market conditions o Company news o Operating statistics table January market conditions Air New Zealand carried 1,182,000 passengers during the month of January, an increase of 3.9% compared to the same period last year. Revenue passenger kilometres (RPKs) were 3.3% higher on a capacity (ASKs) increase of 6.6%. Group load factors were down 2.6 percentage points overall to 82.6%. Short Haul passenger numbers increased 3.9%. In the Domestic market demand (RPKs) increased by 7.3%, with capacity (ASKs) increasing by 10.3%, due to increased services on Auckland - Queenstown and the main trunk routes, as well as growth on the regional routes resulting from up-gauging to larger aircraft. Domestic load factor decreased 2.1 percentage points to 79.2%. Tasman/Pacific demand (RPKs) increased 1.6% while capacity (ASKs) increased by 7.0%, reflecting growth on several Pacific Island routes as well as Australia, and up-gauging to larger aircraft. Load factor on Tasman/Pacific decreased 4.1 percentage points to 78.7%. Long Haul passenger numbers increased 3.4% when compared to January last year, with demand (RPKs) up 3.3% and capacity (ASKs) up 5.6%. Load factor on Long Haul routes was 85.4%, down 1.9 percentage points. On Americas/UK routes, demand (RPKs) decreased by 0.7%, with capacity (ASKs) decreasing 1.2% due to reduced frequency on the Auckland-Los Angeles and Auckland-San Francisco routes, partially offset by increased services to Houston and Buenos Aires. Load factor increased 0.4 percentage points to 86.9%. On Asia/Japan/Singapore routes, demand (RPKs) increased 10.8%, with capacity (ASKs) increasing by 18.6%, reflecting additional frequency to Shanghai over the Chinese New Year holiday and the new seasonal service between Auckland and Osaka. Load factor, although still strong at 83.0%, decreased 5.8 percentage points. For the financial year to date, Short Haul passenger revenue per ASK (RASK)* decreased 6.4% while Long Haul RASK* decreased 14.1%. Removing the impact of foreign exchange, Group-wide RASK* decreased 8.9%, and Group-wide yields for the financial year to date decreased 7.3% on the same period last year. * Air New Zealand's operating statistics will provide Passenger revenue per ASK, or RASK, going forward as a key metric of revenue performance. RASK is defined as passenger revenue for the period divided by the total ASKs for the period; compared to yield which represents the passenger revenue per passenger kilometre flown. Company news 2017 Interim Results Air New Zealand's 2017 interim results will be announced on Thursday 23 February 2017. A conference call for investors and analysts will be hosted by Christopher Luxon (Chief Executive Officer) and Rob McDonald (Chief Financial Officer) at 11:00am NZST and can be accessed in the following ways: o Live via webcast: Click here for link to the analyst webcast. o Live via telephone (for "listen-only" participants and those who would like to ask a question): Conference ID: 356705 New Zealand Toll Free: 0800 453 055 NZ Local (Auckland): 09 929 1687 NZ Local (Wellington): 04 974 7738 NZ Local (Christchurch): 03 974 2632 Australia Toll Free: 1 800 558 698 Alternate Australia Toll Free: 1 800 809 971 Australia Local: 02 9007 3187 United States: (855) 881 1339 United Kingdom: 0800 051 8245 China Wide: 4001 200 659 Hong Kong: 800 966 806 Japan: 0053 116 1281 Singapore: 800 101 2785 o Replay via webcast - a replay will be available afterwards and can be accessed through the "Results Centre" link on the Investor Centre section of Air New Zealand's website: https://www.airnewzealand.co.nz/investor-centre Major milestones for Air New Zealand's mobile app Air New Zealand's mobile app is proving a hit with customers, clocking up its one millionth user download in January. At the same time, the app's popular coffee ordering function registered its two millionth coffee order. Air New Zealand Chief Digital Officer Avi Golan says a million downloads is an important milestone for the airline which is very focused on delivering great mobile experiences for customers. "We first launched our mobile platform in 2008, then relaunched in 2013 with enhanced functionality, and have continued to add new features as we build up its functionality. "Customer satisfaction with the app is high. Customers who participated in research groups told us they use it almost every time they fly with us, with many commenting about how it makes travel easier," Mr Golan says. Air New Zealand's mobile app offers a range of features to enhance the check-in, lounge, and boarding experiences for customers, including the ability to check-in for flights, manage bookings on the go, track Airpoints(TM) balances and receive real-time flight information. Mr Golan says customers can look forward to the airline continuing to evolve and develop the apps it offers to further enhance their travel experience - not only to manage their bookings and at the airport on the day of travel, but also earlier in the dreaming and planning phase. Ends. End CA:00297035 For:AIR Type:MONTHLY Time:2017-02-20 09:47:27