Ann: MONTHLY: AIR: Air New Zealand Investor Updat

• Release Date: 27/07/12 18:29
• Summary: MONTHLY: AIR: Air New Zealand Investor Update (Op Stats) - June 2012
• Price Sensitive: No
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AIR
27/07/2012 16:29
MONTHLY

REL: 1629 HRS Air New Zealand Limited (NS)

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

CONTENTS

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

JUNE MARKET CONDITIONS

Air New Zealand carried 1,124,000 passengers during the month of June, 0.2%
more than the same period last year. Revenue passenger kilometres (RPKs)
increased 6.9% on a capacity (ASKs) increase of 7.8%. Group load factor was
down 0.7 of a percentage point to 83.6%.

Short Haul passenger numbers decreased 1.2% on June last year. Demand (RPKs)
decreased in the Domestic market by 0.6% compared to last year, with load
factor down 1.8 percentage points on a capacity (ASKs) increase of 1.7%.
Tasman/Pacific demand (RPKs) increased 1.8%, with capacity (ASKs) increasing
4.8%. Tasman/Pacific load factor decreased by 2.4 percentage points to 83.1%
when compared to June 2011. The Short Haul part of the network was positively
impacted in June 2011 as a result of the Chilean ash cloud disrupting other
airlines' flight schedules.

Long Haul passenger numbers increased 10.9% compared to June last year, with
growth in capacity (ASKs) of 11.1% and demand (RPKs) of 11.7%. Load factor
increased 0.5 of a percentage point to 85.1%. On North America/UK routes,
demand (RPKs) increased 9.1% with capacity (ASKs) increasing by 7.4%. As a
result, load factor increased by 1.4 percentage points on the previous year
to 90.0%. Demand (RPKs) increased by 16.2% on Asia/Japan/UK routes, with
capacity (ASKs) increasing by 16.7%. Load factor decreased by 0.4 of a
percentage point to 78.2%.

Group-wide yields for the financial year to date were up 3.0% on the same
period last year. Compared to June 2011, year to date Short Haul yields were
up 1.0%. Long Haul yields were up by 4.0%. Removing the impact of foreign
exchange, Group-wide yields were up 4.7%.

The network performed strongly in June, contributing to a better Group
financial performance than expectations in the final quarter of the 2012
financial year.

In June, 83.7% of Air New Zealand's Domestic flights departed within 10
minutes of scheduled departure time.

COMPANY NEWS

Fleet to sport a new livery from next year

The tails of all new aircraft entering the Air New Zealand fleet are to be
painted black, and the lettering of the Air New Zealand name is being
modernised. The airline began using black as its corporate colour ahead of
the All Blacks' campaign last year. Kiwi typeface designer Kris Sowersby and
Designworks were engaged to update the airline's brand imagery, which will be
rolled out across all signage and communications channels by the end of the
year.

Air New Zealand brings the world to Middle Earth

As part of a two-year partnership between Air New Zealand and Warner Bros.
Pictures, passengers to and from the UK and North America can look forward to
flying on two Hobbit-branded Boeing 777 aircraft, enjoy a very special
edition of the inflight safety video and take part in a wide range of
upcoming promotions and experiences. This partnership is a natural extension
of Air New Zealand's successful involvement with the Lord of the Rings
trilogy films, which significantly raised New Zealand's profile as an
international travel destination.

Airpoints can become 'Shairpoints'

In an expansion of the current Airpoints gifting programme, New Zealand based
members will now be able to pool their Airpoints Dollars with up to four
other members - including two who reside at a different address. This is a
simple way in which people can make the most of their Airpoints Dollars and
adds to the improved flexibility introduced a few months ago when the
OneSmart card was launched. OneSmart allows people who are short on Airpoints
dollars to pay for a flight to top up their account using their OneSmart
account.

Aggressive new pricing on domestic routes

Fares are to be slashed on domestic trunk routes for the second time in nine
months, as Air New Zealand boosts capacity over the coming year. Leisure
travellers in Auckland, Wellington, Christchurch, Dunedin and Queenstown will
be the first to benefit from an aggressive new approach to fill the 320,000
additional seats per year that are being added to the New Zealand domestic
network. Pricing on regional services is also under review, with the first of
the new ATR72-600 turbo prop aircraft arriving in the coming months.
End CA:00225405 For:AIR    Type:MONTHLY    Time:2012-07-27 16:29:59