Ann: MONTHLY: AIR: Air New Zealand Investor Updat

• Release Date: 22/02/12 11:15
• Summary: MONTHLY: AIR: Air New Zealand Investor Update (January Operating Stats)
• Price Sensitive: No
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AIR
22/02/2012 09:15
MONTHLY

REL: 0915 HRS Air New Zealand Limited (NS)

MONTHLY: AIR: Air New Zealand Investor Update (January Operating Stats)

MONTHLY INVESTOR UPDATE: 22 FEBRUARY 2012

CONTENTS
- January market conditions
- Company news
- Operating statistics table (attached)

JANUARY MARKET CONDITIONS

Air New Zealand carried 980,000 passengers during the month of January, 1.0%
less than last year. Revenue passenger kilometres (RPKs) decreased 1.3% on
the same capacity (ASKs). The Group load factor decreased 1.1 percentage
points.

Short Haul passenger numbers were down 0.4% on January last year. Demand
(RPKs) increased in the Domestic market by 1.6% on last year and the load
factor increased 1.9 percentage points to 83.8% on decreased capacity (ASKs)
of 0.7%. Tasman / Pacific demand (RPKs) was 0.9% higher after capacity (ASKs)
decreased by 1.2%. The Tasman / Pacific load factor increased by 1.8
percentage points compared to January 2011 to 86.9%.

Long Haul passenger numbers were 4.3% lower than January last year on 0.7%
more capacity (ASKs). On North America / UK routes demand (RPKs) decreased by
3.4% on last January and capacity (ASKs) was decreased by 2.1%. Load factor
decreased by 1.3 percentage points on last year to 89.2%. Demand (RPKs)
decreased by 1.8% on Asia / Japan / UK routes, capacity (ASKs) increased by
4.8% and load factor decreased by 5.5 percentage points to 82.8%. The impact
of the Christchurch and Japan earthquakes in 2011 continues to significantly
affect passenger numbers on the Japan routes. Excluding Japan, capacity
(ASKs) increased 15.8% on Asia/UK routes as a result of additional services
to Hong Kong and Shanghai. Demand (RPKs) increased by 10.3% and load factor
decreased by 4.3 percentage points to 84.8% compared to January last year.

Group-wide yields for the financial year to date were up 4.1% on the same
period last year. Compared to last January year to date Short Haul yields
were up 1.7%. Long Haul yields were up by 4.3%. Removing the impact of
foreign exchange, Group-wide yields were up 5.8%.

In January, 84.75% of Air New Zealand's Domestic flights departed within 10
minutes of scheduled departure time.

COMPANY NEWS

Air New Zealand CEO Resignation

Chairman John Palmer says Chief Executive Officer Rob Fyfe has confirmed this
will be his last year at the helm of the national carrier.

"Rob has been - and continues to be - an outstanding Chief Executive Officer
with the full support of the Air New Zealand Board. He has ensured that Air
New Zealand has remained profitable despite the backdrop of turbulent
economic times that have seen airlines lose billions globally. Alongside this
Air New Zealand's innovations, high customer satisfaction ratings and culture
have become the envy of airlines around the world. Rob's leadership skills
have also been acknowledged internationally with his current chairmanship of
the Star Alliance and his continuing role as a member of the IATA Board," Mr
Palmer says

We would expect significant international interest in the role and believe
there are some very strong candidates from within Air New Zealand's existing
executive management team. There is no fixed time for when the decision will
be made on the appointment of Air New Zealand's next Chief Executive Officer
but a normal period would be roughly six months."

Mr Fyfe says his decision to leave Air New Zealand on 31 December 2012
coincides with the end of his term as Chairman of Star Alliance and will also
see him complete four years as a Board member of the International Air
Transport Association.

Bali is Air New Zealand's newest international route

Kiwis will now be able to fly non-stop to the popular holiday destination of
Bali with the launch of Air New Zealand's new twice weekly service between
Auckland and Denpasar Airport.

The Boeing 767-300 service will operate seasonally over the peak demand
period of June to October, but has the potential to operate year round if
there's sufficient demand.

The inaugural flight will depart on Wednesday June 20, subject to government
and regulatory approvals. The Boeing 767-300 has 24 Business Class and 204
Economy Class seats.
End CA:00219834 For:AIR    Type:MONTHLY    Time:2012-02-22 09:15:45