Ann: MONTHLY: AIR: Air New Zealand Investor Update (Op Stats) - December 2014

• Release Date: 23/01/15 10:24
• Summary: MONTHLY: AIR: Air New Zealand Investor Update (Op Stats) - December 2014
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					AIR
23/01/2015 10:24
MONTHLY
PRICE SENSITIVE
REL: 1024 HRS Air New Zealand Limited (NS)

MONTHLY: AIR: Air New Zealand Investor Update (Op Stats) - December 2014

Contents
- December market conditions
- Company news
- Operating statistics table

December market conditions
Air New Zealand carried 1,431,000 passengers during the month of December,
2.7% more than the same period last year. Revenue passenger kilometres (RPKs)
were 3.5% higher on a capacity (ASKs) increase of 5.0%. Group load factor was
85.1%, down 1.2 percentage points.

Short Haul passenger numbers were up 2.5%, while in the Domestic market
demand (RPKs) and capacity (ASKs) increased by 3.7% and 3.4% respectively.
Domestic load factor was 83.6%, up 0.2 of a percentage point.

Tasman/Pacific demand (RPKs) increased 0.3% while capacity (ASKs) increased
by 0.2%. Load factor on Tasman/Pacific increased 0.2 of a percentage point to
84.0%.

Long Haul passenger numbers increased 4.5% when compared to December last
year, with demand (RPKs) up 5.2% and capacity (ASKs) up 8.5%. Load factor on
Long Haul routes was 86.1%, down 2.7 percentage points.

On North American/UK routes, demand (RPKs) increased 1.4% with capacity
(ASKs) increasing 3.3%. Load factor was down 1.5 percentage points to 86.8%.

Demand (RPKs) increased 13.5% on Asia/Japan routes, with capacity (ASKs)
increasing by 19.8% due mostly to increased frequency into the Japan market
during the peak season. Load factor decreased 4.8 percentage points to 84.9%.

Group-wide yields for the financial year to date were up 1.9% on the same
period last year. Short Haul yields were up 2.7%, while Long Haul yields were
up 0.3%. Removing the impact of foreign exchange, Group-wide yields were up
3.8%.

Company news

Air New Zealand-Singapore Airlines alliance takes off

The alliance between Air New Zealand and Singapore Airlines took flight in
the early hours of 6 January 2015 with the first return service between New
Zealand and Singapore departing Auckland just after midnight.

Air New Zealand Chief Executive Officer Christopher Luxon said: "The
operational launch of our alliance is an exciting way to kick off 2015, a
year which will see us grow our long haul network. Our New Zealand-Singapore
service is key to our Pacific Rim strategy, providing our customers with not
only a convenient direct service, but great connectivity to South East Asia
and markets beyond."

On the Auckland-Singapore route Air New Zealand is operating newly
refurbished Boeing 777-200ER aircraft, while Singapore Airlines is operating
the world's largest aircraft, the Airbus A380. Refurbished Boeing 777-200ERs
will also be operated by Singapore Airlines on the Singapore-Christchurch
route.

Through the alliance, the carriers aim to increase capacity between New
Zealand and Singapore by up to 30% year-round over time, while delivering
enhanced benefits to customers.

In addition to the increased capacity Air New Zealand's customers can now
enjoy codeshare connectivity to more than 50 additional destinations on the
Singapore Airlines and SilkAir networks. In turn, Singapore Airlines is
codesharing on a further 40 routes in the Air New Zealand network.
End CA:00259992 For:AIR    Type:MONTHLY    Time:2015-01-23 10:24:35