Ann: MONTHLY: AIR: Air New Zealand Investor Updat

• Release Date: 27/04/12 17:52
• Summary: MONTHLY: AIR: Air New Zealand Investor Update - March 2012
• Price Sensitive: No
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AIR
27/04/2012 15:52
MONTHLY

REL: 1552 HRS Air New Zealand Limited (NS)

MONTHLY: AIR: Air New Zealand Investor Update - March 2012

CONTENTS

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

MARCH MARKET CONDITIONS

Air New Zealand carried 1,294,000 passengers during the month of March, 0.1%
less than last year. Revenue passenger kilometres (RPKs) increased 1.6% on
1.6% less capacity (ASKs). This resulted in an increase in Group load factor
of 2.6 percentage points to 82.4%.

Short Haul passenger numbers were slightly down by 0.2% on March last year.
Demand (RPKs) decreased in the Domestic market by 0.6% compared to last year,
with load factor increasing 0.6 of a percentage point to 84.0% on capacity
(ASKs) reductions of 1.3%. Tasman / Pacific demand (RPKs) increased 4.2%
while capacity (ASKs) decreased by 0.3%. Tasman / Pacific load factor
increased by 3.6 percentage points to 82.5% when compared to March 2011.

Long Haul passenger numbers increased 1.0% compared to March last year on
2.4% less capacity (ASKs). On North America / UK routes demand (RPKs)
decreased by 5.4% on last March with capacity (ASKs) reduced by 10.7%. As a
result, load factor increased by 4.7 percentage points on the previous year
to 84.8%. Demand (RPKs) increased by 11.4% on Asia / Japan / UK routes, with
capacity (ASKs) increasing by 10.7%. Load factor increased by 0.5 of a
percentage point to 78.1%.

Group-wide yields for the financial year to date were up 3.9% on the same
period last year. Compared to last March, year to date Short Haul yields were
up 1.8%. Long Haul yields were up by 4.0%. Removing the impact of foreign
exchange, Group-wide yields were up 5.6%.

In March, 82% of Air New Zealand's Domestic flights departed within 10
minutes of scheduled departure time.

COMPANY NEWS

Air New Zealand to go daily to Shanghai

Air New Zealand plans to operate daily services to Shanghai within the coming
12 months. Following a review of current services into China, Air New Zealand
has determined that this expansion will best be achieved by consolidating
services into Shanghai and serving Beijing as a one-stop destination in
conjunction with Star Alliance code-share partner Air China.
The airline will add a fifth weekly service to Shanghai from July 4 as it
focuses its efforts on continuing to build this natural gateway between New
Zealand and China. Air New Zealand will suspend the twice weekly direct
Auckland - Beijing service from 30 June 2012 as it concentrates on growing
the Shanghai service. Group General Manager International Airline,
Christopher Luxon, says Air New Zealand still considers Beijing to be an
important and growing market and the Air China code share arrangement
provides convenient connections between Shanghai and Beijing in both
directions.

Air New Zealand and Department of Conservation announce new partnership

Air New Zealand and the Department of Conservation (DOC) have confirmed a
major three year commercial partnership. The partnership is worth the
equivalent of $1 million annually to DOC through travel and marketing support
for new conservation programmes around the National Parks Great Walks
network, species translocations around the country and in promotion of the
Great Walks themselves.

Air New Zealand's sole major sponsorship of the Great Walks network
incorporates nine of New Zealand's finest tracks; Rakiura, Kepler, Milford,
Routeburn, Heaphy, Abel Tasman Coast, Whanganui River Journey, Tongariro and
Lake Waikaremoana.

The agreement will also see Air New Zealand using its national network to
transport threatened species (birds, reptiles and invertebrates) to safe new
breeding sites around the country as part of DOC's active recovery
programmes. There are approximately 200 transfers each year of threatened
wildlife.

Air New Zealand's marketing plans for the Great Walks include development of
flight and hut packages and high-end group experiences on conservation land,
promotion through its million strong frequent flyer database and significant
local and international marketing and social media activity. The partnership
represents an important expansion of the airline's environment strategy.
End CA:00222290 For:AIR    Type:MONTHLY    Time:2012-04-27 15:52:21