Ann: MONTHLY: AIR: Air New Zealand Investor Updat

• Release Date: 01/02/13 11:27
• Summary: MONTHLY: AIR: Air New Zealand Investor Update (Op Stats) - December 2012
• Price Sensitive: No
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AIR
01/02/2013 09:27
MONTHLY

REL: 0927 HRS Air New Zealand Limited (NS)

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

CONTENTS

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

DECEMBER MARKET CONDITIONS

Air New Zealand carried 1,357,000 passengers during the month of December,
3.3% more than the same period last year. Revenue passenger kilometres (RPKs)
increased 3.5% on a capacity (ASKs) increase of 1.6%. Group load factor was
86.0%, up 1.6 percentage points.

Short Haul passenger numbers were up 3.9% on the same period last year.
Demand (RPKs) increased in the Domestic market by 6.1%, while capacity
increased 5.4%. Domestic load factor was up 0.6 of a percentage point to
84.8%.

Tasman/Pacific demand (RPKs) increased 4.7%, with capacity (ASKs) increasing
8.1%, driven mostly by the introduction of B777 aircraft on the
Auckland-Perth route. Load factor for Tasman/Pacific was down 2.7 percentage
points to 84.4%.

Long Haul passenger numbers decreased 0.8% compared to December last year,
with a decrease in capacity (ASKs) of 2.6% and increase in demand (RPKs) of
2.2%. Load factor increased by 4.1 percentage points to 87.3%.

On North America/UK routes, demand (RPKs) increased 6.3% with capacity (ASKs)
increasing by 2.8% due to increased frequencies on the Auckland-Los Angeles
route. Load factor increased 2.9 percentage points on the previous year to
88.2%.

Demand (RPKs) was down 3.5% on Asia/Japan/UK routes, with capacity (ASKs)
decreasing by 9.7% due to consolidation of China flying onto the Shanghai
route, and additional B767 aircraft on the Asia/Japan routes. Load factor
increased by 5.5 percentage points to 85.9%.

Group-wide yields for the financial year to date were up 0.3% on the same
period last year. Short Haul yields were down 2.2%, while Long Haul yields
were up 3.8%. Removing the impact of foreign exchange, Group-wide yields were
up 0.7%.

In December, 76.2% of Air New Zealand's Domestic flights departed within 10
minutes of scheduled departure time.

COMPANY NEWS

DAILY SERVICES NOW OFFERED ON TOKYO AND SHANGHAI ROUTES

Air New Zealand has commenced daily return services to Shanghai for the first
time since launching the route in 2006. The Shanghai region is home to around
23 million people and the city is a gateway for the rapidly growing Chinese
market. China is now New Zealand's second largest inbound tourist market,
after Australia, having recently overtaken both North America and the UK.

The airline has also resumed daily return services to Tokyo for the first
time in three years.

CHIEF PEOPLE OFFICER APPOINTED

Air New Zealand has appointed Lorraine Murphy as Chief People Officer,
effective March 4. Ms Murphy is currently based in the United States where
she was most recently Vice President Human Resources - International for
Campbell Soup Company, which has more than 20,000 employees globally and
sales in excess of US$8 billion annually.

Her role provided leadership across key geographic regions, such as Asia
Pacific, Europe and Latin America. Ms Murphy had previously held senior human
resource leadership roles with Lion Nathan Australia, the Australian Gas
Light Company (AGL) and global chemical company ICI.

AIR NEW ZEALAND / CATHAY PACIFIC STRATEGIC AGREEMENT GOES LIVE

Code share tickets are now on sale, offering customers twice (and up to three
times) daily services for travel between Auckland and Hong Kong. Air New
Zealand Airpoints members and Cathay Pacific's Marco Polo Club members will
also have increased opportunities to receive frequent flyer programme and
lounge access benefits when travelling between Hong Kong and New Zealand.

Air New Zealand's loyalty customers will also get lounge access when
travelling on Cathay Pacific's connecting flights to and from Shanghai and
Beijing via Hong Kong. The cooperation between Cathay and Air New Zealand
opens up better connectivity between New Zealand and points in China,
heralding an exciting new opportunity for New Zealand's tourism aspirations
as Air New Zealand continues to grow this important market.
End CA:00232525 For:AIR    Type:MONTHLY    Time:2013-02-01 09:27:47