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

• Release Date: 16/03/16 09:44
• Summary: MONTHLY: AIR: Air New Zealand Investor Update (Op Stats) - February 2016
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					AIR
16/03/2016 09:44
MONTHLY
PRICE SENSITIVE
REL: 0944 HRS Air New Zealand Limited (NS)

MONTHLY: AIR: Air New Zealand Investor Update (Op Stats) - February 2016

Contents
o February market conditions
o Company news
o Operating statistics table

February market conditions
Air New Zealand carried 1,240,000 passengers during the month of February,
9.0% more than the same period last year. Revenue passenger kilometres (RPKs)
were 10.3% higher on a capacity (ASKs) increase of 9.9%. Group load factors
were up 0.3 percentage points to 84.2%.

Short Haul passenger numbers were up 8.4%.  In the Domestic market demand
(RPKs) and capacity (ASKs) increased by 13.6% and 11.3%, respectively.
Domestic load factor was 83.7%, up 1.7 percentage points.

Tasman/Pacific demand (RPKs) increased 1.4% while capacity (ASKs) increased
by 5.4%. Load factor on Tasman/Pacific decreased 3.3 percentage points to
83.0%.

Long Haul passenger numbers increased 12.8% when compared to February last
year, with demand (RPKs) up 14.0% and capacity (ASKs) up 11.7%. Load factor
on Long Haul routes was 84.9%, up 1.7 percentage points.

On Americas/UK routes, demand (RPKs) increased 17.7% with capacity (ASKs)
increasing 16.4% due to the new Auckland-Houston and Auckland-Buenos Aires
routes. Load factor was up 0.9 percentage points to 83.0%.

On Asia/Japan/Singapore routes, demand (RPKs) increased 8.3%, with capacity
(ASKs) increasing by 4.5%. Load factor increased 3.1 percentage points to
88.1%.

Group-wide yields for the financial year to date were down 0.7% on the same
period last year. Short Haul yields were down 0.2% while Long Haul yields
were up 2.1%. Removing the impact of foreign exchange, Group-wide yields were
down 4.7%.

Company news

Air New Zealand and United Airlines to revenue share on New Zealand-USA
routes

Air New Zealand and United Airlines have entered into a revenue sharing
agreement, further deepening the longstanding alliance between the two
airlines.

Under the revenue sharing alliance the carriers will work together to promote
and sell both airlines' services between New Zealand and mainland USA,
including domestic feeder services in both New Zealand and the United States,
increasing the flight options available to customers.

The revenue share agreement will come into effect when United launches its
new San Francisco - Auckland service on 1 July this year. The alliance
further strengthens Air New Zealand's network of strong Pacific Rim revenue
share partners which includes Virgin Australia, Cathay Pacific, Singapore
Airlines and Air China.

Subject to United Airlines obtaining government approval, it will begin
operating a three-times-weekly 787-8 Dreamliner service between San Francisco
and Auckland in July, moving to daily services operated by a larger 787-9
aircraft in November 2016.

Once United begins operating its Auckland-San Francisco flights the airlines
will operate complementary services on the route, with United's flights
arriving into San Francisco in the early morning and Air New Zealand's
flights arriving around midday.

Air NZ and Virgin Australia launch search for aviation biofuel opportunities

The trans-Tasman alliance partners are issuing a Request for Information
(RFI) to the market to explore the opportunity to procure locally-produced
aviation biofuel.
Air New Zealand Chief Flight Operations and Safety Officer Captain David
Morgan says the airline recognises the impact aviation has on the environment
and this RFI is a key initiative under its carbon management programme.
"By working in partnership with our alliance partner Virgin Australia we hope
we can stimulate the local market, drive innovation and investment and
potentially uncover a sustainable biofuel supply suitable for our respective
operations," says Captain Morgan.
Both airlines are committed to ensuring that aviation biofuel delivers
environmental, social and economic benefits, and respondents to the RFI are
encouraged to address these principles.
Interested parties have until 30 May 2016 to express their interest.

Air New Zealand to resume Osaka flights

Air New Zealand will resume a nonstop seasonal service between Auckland and
Osaka, Japan from November.

Using Boeing 767-300 aircraft, the airline will operate three return services
per week on Wednesdays, Fridays and Sundays between November 2016 and March
2017, subject to government and regulatory approvals.

In 2013 Air New Zealand consolidated its services to Japan, suspending the
Osaka route and refocusing on growing its Tokyo Narita services.  Since that
time, Air New Zealand has significantly grown traffic between New Zealand and
Japan, creating new demand for a seasonal Osaka service.

Air New Zealand Chief Strategy, Networks and Alliances Officer Stephen Jones
says the new seasonal service is a great proposition for Kiwis looking to
head north over the summer months and for Japanese travellers looking to head
south for Southern summer.

"For Kiwis looking to explore the historical and cultural areas of Western
Japan, and nearby Kyoto, this service to Osaka will be very appealing. Osaka
will also increase the options for travellers connecting to other
destinations within Japan and exploring more of the country.

"With this new seasonal offering, paired with our ten times weekly service
between Auckland and Tokyo on the 787-9 Dreamliner, we're confident that we
can meet the growing demand for travel to and from Japan."

The number of New Zealanders travelling to Japan grew 17 percent to 29,400
for the year ending December 2015.

Ends.
End CA:00279344 For:AIR    Type:MONTHLY    Time:2016-03-16 09:44:52