Ann: MONTHLY: AIR: Air New Zealand Investor Update (Op Stats) - June 2015

• Release Date: 23/07/15 11:30
• Summary: MONTHLY: AIR: Air New Zealand Investor Update (Op Stats) - June 2015
• Price Sensitive: No
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					AIR
23/07/2015 11:30
MONTHLY
PRICE SENSITIVE
REL: 1130 HRS Air New Zealand Limited (NS)

MONTHLY: AIR: Air New Zealand Investor Update (Op Stats) - June 2015

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

JUNE MARKET CONDITIONS
Air New Zealand carried 1,341,000 passengers during the month of June, 5.0%
more than the same period last year. Revenue passenger kilometres (RPKs) were
10.5% higher on a capacity (ASKs) increase of 11.7%. Group load factors were
down 0.8 percentage points to 81.7%.

Short Haul passenger numbers were up 3.5%, while in the Domestic market
demand (RPKs) and capacity (ASKs) increased by 4.0% and 2.3%, respectively.
Domestic load factor was 79.6%, up 1.3 percentage points.

Tasman/Pacific demand (RPKs) increased 4.0% while capacity (ASKs) increased
by 2.2%. Load factor on Tasman/Pacific increased 1.4 percentage points to
83.0%.

Long Haul passenger numbers increased 17.3% when compared to June last year,
with demand (RPKs) up 16.0% and capacity (ASKs) up 19.9%. Load factor on Long
Haul routes was 81.6%, down 2.7 percentage points.

On North American/UK routes, demand (RPKs) increased 6.0% with capacity
(ASKs) increasing 9.8%. Load factor was down 3.1 percentage points to 85.5%.

On Asia/Japan/Singapore routes, demand (RPKs) increased 39.5%, with capacity
(ASKs) increasing by 40.4% due to the new Auckland-Singapore route and larger
B787-9 aircraft operating on the Auckland-Shanghai route. Load factor
decreased 0.5 percentage points to 75.4%.

Group-wide yields for the financial year to date were up 0.2% on the same
period last year. Short Haul yields were up 2.2% while Long Haul yields were
down 1.3%, with Long Haul yields being negatively impacted by foreign
exchange movements. Removing the impact of foreign exchange, Group-wide
yields were up 0.9%.

COMPANY NEWS

Air New Zealand completes sale of Safe Air

On 1 July 2015, Air New Zealand completed the sale of its wholly owned
subsidiary Safe Air to Airbus Group Australia Pacific Pty Limited, a major
supplier to the Australian Defence Forces and leading civil helicopter
retailer.

Safe Air is a Blenheim-based aviation maintenance, design and manufacturing
business focused on providing high quality engineering support for military
and commercial customers, including the Royal New Zealand Air Force.  Air New
Zealand's Chief Operations Officer Bruce Parton said the airline has been
exploring opportunities for some time to secure a solid future for Safe Air
which best positions it for growth.

"This is a fantastic outcome for Safe Air and its employees, with Airbus able
to provide guidance, direction and the resources that will increase its
capabilities and contribute to its growth. This in turn will have a positive
impact on the local economy", said Mr Parton.

Airbus Group Australia Pacific employs more than 1,400 staff at 15 sites
across Australia and New Zealand. It has three operating divisions - Civil
Helicopters, Government Helicopters and Fixed Wing - and maintains Orion and
Hercules aircraft for the Royal Australian Air Force.

"Safe Air's reputation, skill set and outlook are all strong and closely
align with Airbus Group. We've worked with Safe Air in the past and for us,
bringing the company into Airbus strengthens our position and potential in
New Zealand. We look forward to working with our new colleagues on a daily
basis," said Dr Jens Goennemann, Managing Director Airbus Group Australia
Pacific.

Air New Zealand upgraded by Moody's to Baa3

On 6 July 2015, Moody's Investors Service upgraded Air New Zealand's senior
unsecured issuer rating to Baa2 from Baa3.

This is a one notch upgrade, and the rating outlook is stable.

Air New Zealand named one of the world's 10 favourite international airlines

On 10 July 2015, Air New Zealand was named fifth best international airline
in the 2015 Travel + Leisure magazine annual awards for the Top Airlines in
the World. To determine the winner, they surveyed its readers and collected
data on a host of parameters including cabin comfort, inflight service,
customer service, value, food, and loyalty programmes.

In addition, our alliance partner Singapore Airlines took out the top spot.
Pacific Rim airlines fared particularly well, making up seven of the 10
award-getters.

See attachment for operating statistics.

ENDS
End CA:00267329 For:AIR    Type:MONTHLY    Time:2015-07-23 11:30:18