Ann: MONTHLY: AIR: Air New Zealand Investor Update (Op Stats) - August 2014

• Release Date: 26/09/14 15:16
• Summary: MONTHLY: AIR: Air New Zealand Investor Update (Op Stats) - August 2014
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					AIR
26/09/2014 15:16
MONTHLY

REL: 1516 HRS Air New Zealand Limited (NS)

MONTHLY: AIR: Air New Zealand Investor Update (Op Stats) - August 2014

CONTENTS

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

AUGUST MARKET CONDITIONS

Air New Zealand carried 1,046,000 passengers during the month of August, 0.9%
more than the same period last year. Revenue passenger kilometres (RPKs) were
flat on a capacity (ASKs) decrease of 0.4%. Group load factor was 83.6%, up
0.3 of a percentage point.

Short Haul passenger numbers were up 1.2%, with demand (RPKs) increasing in
the Domestic market by 1.7%, while capacity increased by 3.7%. Domestic load
factor was down 1.6 percentage points to 78.1%.

Tasman/Pacific demand (RPKs) increased 1.4% while capacity (ASKs) increased
by 3.3%. Load factor on Tasman/Pacific was down 1.4 percentage points to
81.1%.

Long Haul passenger numbers decreased 1.9% compared to August last year, with
demand (RPK) and capacity (ASKs) down 1.4% and 3.9% respectively. Load factor
increased by 2.2 percentage points to 87.1%.

On North America/UK routes, demand (RPKs) decreased 1.3% with capacity (ASKs)
decreasing 0.6%. Load factor decreased 0.6 of a percentage point to 88.8%.

Demand (RPKs) was down 1.6% on Asia/Japan routes, with capacity (ASKs)
decreasing by 10.0% due to the withdrawal from the Auckland-Osaka route. Load
factor increased 7.1 percentage points to 83.7%.

Group-wide yields for the financial year to date were up 1.1% on the same
period last year. Short Haul yields were up 1.1%, while Long Haul yields were
up 0.3%. Removing the impact of foreign exchange, Group-wide yields were up
3.7%.

COMPANY NEWS

SINGAPORE AIRLNES ALLIANCE FLIGHTS NOW ON SALE

Air New Zealand and Singapore Airlines have confirmed 6 January 2015 as the
launch date for their alliance, with codeshare flights going on sale on both
airlines' services between New Zealand and Singapore on 25 September.

The alliance will see the Star Alliance carriers operating one return service
each per day on the Auckland-Singapore route and Singapore Airlines operating
a daily return service between Christchurch and Singapore.

Under the alliance Air New Zealand and Singapore Airlines' goal is to
increase their existing capacity between New Zealand and Singapore by up to
30% year round over time, while delivering enhanced benefits to their
customers.

AIR NEW ZEALAND ANNOUNCES SALE OF ALTITUDE AEROSPACE INTERIORS

Air New Zealand has concluded an agreement for the sale of its wholly owned
subsidiary Altitude Aerospace Interiors Limited to AIM Aviation Limited, a UK
based airline interiors design, engineering and manufacturing company.

Air New Zealand's Chief Financial Officer, Rob McDonald, says Air New Zealand
has been exploring options to take its Altitude business to the next stage of
growth and is satisfied this transaction will provide a strong foundation for
both companies to leverage the relationships they have with aircraft
manufacturers and airline customers.

"With rapid growth forecast in aircraft deliveries over the coming five years
and premium airlines increasingly demanding bespoke interior solutions, this
is an exciting opportunity for Altitude, which will gain access to AIM
Aviation's new UK based state-of-the art manufacturing facilities" he said.

The parties intend to complete the transaction at the end of October.
End CA:00255777 For:AIR    Type:MONTHLY    Time:2014-09-26 15:16:14