Ann: MONTHLY: AIR: Air New Zealand Investor Updat

• Release Date: 22/08/13 13:20
• Summary: MONTHLY: AIR: Air New Zealand Investor Update (Op Stats) - July 2013
• Price Sensitive: No
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AIR
22/08/2013 11:20
MONTHLY

REL: 1120 HRS Air New Zealand Limited (NS)

MONTHLY: AIR: Air New Zealand Investor Update (Op Stats) - July 2013

CONTENTS

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

JULY MARKET CONDITIONS

Air New Zealand carried 1,081,000 passengers during the month of July, 4.2%*
more than the same period last year. Revenue passenger kilometres (RPKs)
increased 2.2%* on a capacity (ASKs) reduction of 1.0%*. Group load factor
was 85.5%, up 2.7 percentage points.

Short Haul passenger numbers were up 4.9%* on the same period last year.
Demand (RPKs) increased in the Domestic market by 7.4%*, while capacity
increased 5.4%*. Domestic load factor was up 1.5 percentage points to 81.0%.

Tasman/Pacific demand (RPKs) increased 5.0%*, with capacity (ASKs) increasing
3.6%*, reflecting the up-gauge to a B777 aircraft on Auckland-Perth. Load
factor for Tasman/Pacific was up 1.1 percentage points to 82.9%.

Long Haul passenger numbers decreased 1.1%* compared to July last year, with
demand (RPKs) down 0.9%* while capacity decreased 5.6%*. Load factor
increased by 4.1 percentage points to 88.5%.

On North America/UK routes, demand (RPKs) increased 14.1%* with capacity
(ASKs) increasing by 7.9%*. Load factor increased 5.0 percentage points to
93.4%.

Demand (RPKs) was down 25.0%* on Asia/Japan/UK routes, with capacity (ASKs)
decreasing by 24.9%* due to the withdrawal of Hong Kong-London flights. Load
factor decreased 0.1 of a percentage point to 78.6%.

Group-wide yields for the financial year to date were up 0.9% on the same
period last year. Short Haul yields were down 1.0%, while Long Haul yields
were up 1.8%. Removing the impact of foreign exchange, Group-wide yields were
up 2.7%.

In July, 76.3% of Air New Zealand's Domestic flights departed within 10
minutes of scheduled departure time.

*Month on month percentage movements have been adjusted on a daily weighted
average basis. The adjustment takes into account the difference in days for
the July 2013 accounting period (28 days) compared to July 2012 (29 days).

COMPANY NEWS

LAUNCH OF NEW MOBILE BOOKING SERVICE

Air New Zealand customers can now book domestic tickets on the fly, straight
from their smartphone's web browser or via the airline's mobile travel app -
mPass.

General Manager Customer Experience Calum Laming says the airline is
continually looking at ways to enhance the customer experience from booking
through to arrival.

"The new mobile booking system has been developed in-house and will enable
our customers to book their domestic flights quickly and easily from their
mobile phone.

"Based on initial feedback we certainly expect the system to be popular among
customers and plan to expand mobile technology later in the year, including
introducing mobile booking for international flights," says Mr Laming.

Customers are able to further speed up the booking process by saving their
credit card details to their online profile in order to use the new Express
Checkout.  Flights can also be purchased with Air New Zealand Airpoints
Dollars(TM).

PARTNERSHIP WITH AUCKLAND INTERNATIONAL AIRPORT ON CHINA TOURISM INITIATIVE

Air New Zealand and Auckland International Airport Limited have signed a
partnership to work together to grow Chinese visitor numbers to New Zealand.

The partnership will focus on targeting new geographic areas in China,
promoting year-round travel to New Zealand, especially during the low-season,
and positioning Auckland Airport as a main gateway for travel from China to
New Zealand and the Pacific Islands.

Joint activity includes advertising, consumer road shows, trade training and
familiarisation trips in order to develop new products for special interests,
corporate customers and families.

APPOINTMENT OF NEW GENERAL MANAGER JAPAN

Air New Zealand has appointed Scott Carr to the position of General Manager
Japan.

Mr Carr has more than 20 years experience at Air New Zealand having joined
subsidiary Mount Cook Airline in 1989. Since then he has held a number of
senior leadership roles at Air New Zealand including General Manager
UK/Europe and most recently General Manager New Zealand.

Air New Zealand Deputy Chief Executive Officer and Acting Chief Sales Officer
Norm Thompson says Mr Carr brings a wealth of knowledge and expertise to what
is a key offshore role.

"Scott has proven experience across a number of the airline's key markets and
while the Japanese market is still in recovery mode, we are seeing positive
signs of growth and under his leadership I believe we are poised to take our
Japanese operation to the next level of commercial success," says Mr
Thompson.
End CA:00240045 For:AIR    Type:MONTHLY    Time:2013-08-22 11:20:21