Ann: MONTHLY: AIR: Air New Zealand Investor Updat

• Release Date: 23/09/13 16:25
• Summary: MONTHLY: AIR: Air New Zealand Investor Update (Op Stats) - August 2013
• Price Sensitive: No
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					AIR
23/09/2013 14:25
MONTHLY

REL: 1425 HRS Air New Zealand Limited (NS)

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

CONTENTS

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

AUGUST MARKET CONDITIONS

Air New Zealand carried 1,037,000 passengers during the month of August, 6.3%
more than the same period last year. Revenue passenger kilometres (RPKs)
increased 4.2% on a capacity (ASKs) increase of 2.1%. Group load factor was
83.3%, up 1.7 percentage points.

Short Haul passenger numbers were up 6.8% on the same period last year.
Demand (RPKs) increased in the Domestic market by 9.1%, while capacity
increased 7.9%. Domestic load factor was up 0.9 of a percentage point to
79.7%.

Tasman/Pacific demand (RPKs) increased 3.6%, with capacity (ASKs) increasing
1.8%, reflecting the up-gauge to a B777 aircraft on Auckland-Perth. Load
factor for Tasman/Pacific was up 1.3 percentage points to 82.5%.

Long Haul passenger numbers increased 2.8% compared to August last year, with
demand (RPKs) up 3.3% while capacity increased 0.6%. Load factor increased by
2.3 percentage points to 84.9%.

On North America/UK routes, demand (RPKs) increased 20.1% with capacity
(ASKs) increasing by 13.8%. Load factor increased 4.7 percentage points to
89.4%.

Demand (RPKs) was down 20.5% on Asia/Japan/UK routes, with capacity (ASKs)
decreasing by 17.0% due to the withdrawal of Hong Kong-London flights. Load
factor decreased 3.3 percentage points to 76.6%.

Group-wide yields for the financial year to date were flat on the same period
last year. Short Haul yields were down 1.0%, while Long Haul yields were up
0.3%. Removing the impact of foreign exchange, Group-wide yields were up
2.0%.

In August, 84.6% of Air New Zealand's Domestic flights departed within 10
minutes of scheduled departure time.

COMPANY NEWS

VIRGIN AUSTRALIA ALLIANCE REAUTHORISED

Air New Zealand welcomes the determinations of both the Australian
Competition and Consumer Commission (ACCC) and New Zealand Minister of
Transport, reauthorising the trans-Tasman alliance with Virgin Australia
through until 31 October 2018.

Air New Zealand Chief Strategy, Networks and Alliances Officer Stephen Jones
says, "Authorisation of the alliance for a further four years and 10 months
will enable the airlines to continue to improve the customer journey across
the Tasman. It will also enable the airlines to continue to leverage
efficiencies, opportunities and cost savings on Tasman operations."

ADJUSTMENT TO REGIONAL NEW ZEALAND SERVICES

Air New Zealand has announced adjustments to some regional services to better
reflect passenger demand. From February 2014 the airline will boost capacity
between Auckland and Rotorua by introducing a larger Bombardier Q300 aircraft
onto the route.

The recent introduction of new ATR72-600 aircraft into the domestic fleet has
enabled the airline to free up Q300 capacity to apply to the Auckland-Rotorua
route. The cost advantage of operating larger Q300 aircraft over the smaller
Beech 1900Ds increases the economic viability of the route and means
customers will benefit from significantly more seats being available at the
lead in fare level of $79 one-way.

In a further adjustment, Air New Zealand has announced the suspension of two
loss making regional services. From February 2014 the airline will no longer
operate to or from Masterton airport. The airline has operated a Beech 1900D
service between Masterton and Auckland since 2009, however, lack of demand
combined with increased operating costs mean the route is no longer
economically viable.

In addition to this, the airline will withdraw its five times per week
service between Wanganui and Wellington from December 2013. This service
operates as a Taupo-Wanganui-Wellington service on three of the five days.
Increased costs including airport landing charges have also contributed to
this route's lack of viability.

EXTENSION OF 'NIGHT RIGER' PROMOTION

Air New Zealand's popular Night Rider service which offers every seat on the
last flight of the day between Auckland and Wellington at a ludicrously low
price is extending to include Christchurch.

From 7 November 2013 every seat on the 9.30pm flights between Auckland and
Christchurch in both directions (Thursday - Monday) will be just $39 (or $49
for a 'Seat + Bag'). The service will be operated by a combination of A320
and B737 aircraft.

AIR NEW ZEALAND AND KIWIBANK LAUNCH GROUNDBREAKING AIRPOINTS CREDIT CARDS

Air New Zealand and Kiwibank are shaking up the credit card market with the
launch of three new Airpoints earning credit cards designed to get every Kiwi
flying faster.

The Air New Zealand Airpoints Low Fee MasterCard is the first in New Zealand
to offer a low annual fee of just $25 and the ability to earn 1 Airpoints
dollar for every $160 spent. The earning rate increases to 1 Airpoints dollar
for every $120 spent on the Air New Zealand Airpoints Standard MasterCard and
an outstanding 1 Airpoints dollar for every $75 spent with the Air New
Zealand Airpoints Platinum MasterCard.

All Air New Zealand Airpoints credit cardholders get even better earning
rates for purchases made direct with the airline.

Air New Zealand's GM Customer Value, Hamish Rumbold, says, "At the moment 20%
of all credit card purchases in New Zealand earn Airpoints Dollars. The new
Air New Zealand Airpoints cards mean there is now a card to suit every Kiwi.
With a low fee option and a sharp interest rate of 15.9% everyone could reap
the benefits of earning Airpoints Dollars as they spend."

"These great Airpoints Dollar earning rates make it even easier to get away
on your next holiday. Just use the card for everyday purchases and watch your
holiday fund grow."

There's even more good news for those Air New Zealand frequent flyers that
enjoy earning Status Points as the Air New Zealand Airpoints Platinum
MasterCard has the best Status Point earn rate in the market - one for every
$200 spent.

Platinum cardholders will also have their Koru membership joining fee waived
and enjoy a discount on the annual membership fee.
End CA:00241445 For:AIR    Type:MONTHLY    Time:2013-09-23 14:25:05