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

• Release Date: 21/08/14 09:59
• Summary: MONTHLY: AIR: Air New Zealand Investor Update (Op Stats) - July 2014
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					AIR
21/08/2014 09:59
MONTHLY

REL: 0959 HRS Air New Zealand Limited (NS)

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

CONTENTS

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

JULY MARKET CONDITIONS

Air New Zealand carried 1,055,000 passengers during the month of July, 1.2%
more than the same period last year. Revenue passenger kilometres (RPKs)
increased 0.8% on a capacity (ASKs) increase of 2.3%. Group load factor was
84.2%, down 1.3 percentage points.

Short Haul passenger numbers were up 1.5%, with demand (RPKs) increasing in
the Domestic market by 2.3%, while capacity increased by 4.9%. Domestic load
factor was down 2.0 percentage points to 79.0%.

Tasman/Pacific demand (RPKs) increased 1.6% while capacity (ASKs) increased
by 3.4%. Load factor on Tasman/Pacific was down 1.4 percentage points to
81.5%.

Long Haul passenger numbers decreased 0.7% compared to July last year, with
demand (RPKs) flat and capacity (ASKs) up 0.9%. Load factor decreased by 0.8
of a percentage point to 87.7%.
On North America/UK routes, demand (RPKs) decreased 0.1% with capacity (ASKs)
increasing by 2.3%. Load factor decreased 2.3 percentage points to 91.1%.

Demand (RPKs) was up 0.1% on Asia/Japan routes, with capacity (ASKs)
decreasing by 2.1%. Load factor increased 1.8 percentage points to 80.4%.

Group-wide yields for the financial year to date were up 2.0% on the same
period last year. Short Haul yields were up 2.3%, while Long Haul yields were
up 1.0%. Removing the impact of foreign exchange, Group-wide yields were up
4.6%.

In the 2014 financial year, 86.5% of Air New Zealand's Domestic Jet flights
departed within 10 minutes of scheduled departure time.

COMPANY NEWS

AIR NEW ZEALAND-SINGAPORE AIRLINES ALLIANCE APPROVED

Air New Zealand welcomed the decision on 7 August 2014 by the New Zealand
Minister of Transport to approve the alliance between Air New Zealand and
Singapore Airlines.

"It's very pleasing to receive regulatory approval for this alliance which
will enable us to grow our network with operations between Auckland and
Singapore in the very near future," said Air New Zealand Chief Executive
Officer Christopher Luxon.

"We look forward to working with our colleagues at Singapore Airlines to
boost capacity between New Zealand and Singapore which will deliver some
great benefits to our customers and other stakeholders in the New Zealand
tourism industry," says Mr Luxon.

The approval follows the clearance of the alliance by the Competition
Commission of Singapore.

The two carriers will announce on sale and operational dates for alliance
services shortly.

NEW ZEALAND'S LARGEST SINGLE SOLAR ARRAY GOES LIVE

On 8 August 2014 New Zealand's largest single solar array was switched on at
Air New Zealand's Technical Operations base at Auckland Airport.

The installation on the roof of one of the airline's hangars comprises 480
solar panels covering an area of around 750 square metres, almost three
tennis courts.

The array is expected to generate 160,000KwH of electricity each year,
powering up to 30 per cent of the hangar's electricity needs. Metering
equipment has also been installed and will allow the airline to measure
electricity consumption in real time.

Air New Zealand set a target in FY11 to reduce electricity use by five
percent per annum and has already significantly exceeded this goal, with
around 25 percent savings in the programme to date.
End CA:00254175 For:AIR    Type:MONTHLY    Time:2014-08-21 09:59:37