Ann: MONTHLY: AIR: Air New Zealand Investor Updat

• Release Date: 25/09/12 11:25
• Summary: MONTHLY: AIR: Air New Zealand Investor Update (Op Stats) - August 2012
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AIR
25/09/2012 09:25
MONTHLY

REL: 0925 HRS Air New Zealand Limited (NS)

MONTHLY: AIR: Air New Zealand Investor Update (Op Stats) - August 2012

CONTENTS

-August market conditions
-Company news
-Operating statistics table (see attached document)

AUGUST MARKET CONDITIONS

The August operating results were in line with expectations, and the outlook
statement provided at the full year result announcement.

The month saw demand improvements on Tasman/Pacific and Long Haul routes,
offset by a drop in demand on the Domestic network, when measured against
last year's unusually strong result. The airline carried 975,000 passengers
during the month of August, 2.9% less than the same period last year. Revenue
passenger kilometres (RPKs) increased 4.2% on a capacity (ASKs) increase of
4.6%. Group load factor was 81.6%, down 0.3 of a percentage point.

Short Haul passenger numbers decreased 3.8% on August last year, primarily
due to reduced passengers on the Domestic network partially offset by an
increase in passenger numbers on the Tasman/Pacific network. Demand (RPKs)
decreased in the Domestic market by 3.8% compared to last year, with load
factor down 2.1 percentage points on a capacity (ASKs) decrease of 1.3%. This
reduction is attributable to a stronger than normal August 2011 result, as
many customers sought to complete travel commitments prior to the Rugby World
Cup.

Tasman/Pacific demand (RPKs) increased 6.4%, with capacity (ASKs) increasing
9.9%. Tasman/Pacific load factor decreased by 2.7 percentage points to 81.2%
when compared to August 2011. This result was driven mostly by higher
capacity on several routes, notably the introduction of flights to Bali and
an extension of the Honolulu and Perth services.

Long Haul passenger numbers increased 4.2% compared to August last year, with
growth in capacity (ASKs) of 3.2% and demand (RPKs) of 5.2%. Load factor
increased 1.6 percentage points to 82.6%. On North America/UK routes, demand
(RPKs) increased 6.5% with capacity (ASKs) increasing by 2.1%. Load factor
increased by 3.5 percentage points on the previous year to 84.7%. Demand
(RPKs) increased by 3.5% on Asia/Japan/UK routes, with capacity (ASKs)
increasing by 4.7%. Load factor decreased by 1.0 percentage point to 79.9%.
This result was underpinned by traffic increases on Pacific Rim routes,
particularly North America. August was the first month that pre-earthquake
traffic levels returned to Japan routes.

Group-wide yields for the financial year to date were down 1.2% on the same
period last year. Compared to August 2011, year to date Short Haul yields
were down 4.0%, but Long Haul yields were up by 3.4%. Removing the impact of
foreign exchange, Group-wide yields were down 0.9%.

In August, 83.9% of Air New Zealand's Domestic flights departed within 10
minutes of scheduled departure time.

COMPANY NEWS

AIR NEW ZEALAND INVESTS IN B777-200ER UPGRADE PROGRAMME

Air New Zealand is investing more than $100 million in upgrading its Boeing
777-200ER fleet to ensure it continues to deliver the most innovative product
and technologies to customers flying on its international network. The
upgrade of the eight aircraft is scheduled to begin in the second quarter of
2014, with all eight aircraft planned to be completed in the following 12
months.

The new system called 'Panasonic eXlite' will have improved system
performance along with significant weight savings through better component
design and architecture. Air New Zealand will be the launch customer for the
new system on the 777-200ER.

ALTITUDE WELCOMES ITS FIRST VIP CUSTOMER TO NEW ZEALAND IN STYLE

Altitude Aerospace Interiors, a fully owned subsidiary of Air New Zealand,
has welcomed the first new Boeing Business Jet (BBJ) into its
Christchurch-based completion facility following a non-stop delivery flight
from Los Angeles to Auckland.

The BBJ aircraft will now be positioned at Altitude's Christchurch base for
the next 10 months where it will receive a full VIP custom interior complete
with the latest in-flight entertainment and communication systems before
being delivered to a private overseas owner.

AIR NEW ZEALAND RECEIVES MARKETING EXCELLENCE AWARD

Air New Zealand Chief Executive Rob Fyfe has been awarded the inaugural
'Marketing Excellence Award' at the 2012 New Zealand Marketing Awards. It is
an award which celebrates the CEO of an organisation that has demonstrated a
consistent commitment to marketing excellence; which is demonstrated by the
adoption of a superior marketing strategy which has driven business success.

The Marketing New Zealand judges said from product and price to advertising
and loyalty, Air New Zealand is customer-centric at every point of the
experience and marketing-led at every point of the business.

AIR NEW ZEALAND NAMED MOST REPUTABLE ORGANISATION

Air New Zealand has been named this year's Most Reputable Organisation by New
Zealand Management magazine, taking top slot in the overall survey rankings,
followed by Fonterra and Beca.
This year's survey respondents praised many aspects of Air New Zealand
performance: its strong leadership, customer service orientation, innovation,
brand and corporate values, and its role as a strong ambassador for New
Zealand.
End CA:00227695 For:AIR    Type:MONTHLY    Time:2012-09-25 09:25:32