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

• Release Date: 21/04/15 10:38
• Summary: MONTHLY: AIR: Air New Zealand Investor Update (Op Stats) - March 2015
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					AIR
21/04/2015 10:38
MONTHLY
PRICE SENSITIVE
REL: 1038 HRS Air New Zealand Limited (NS)

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

CONTENTS:

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

MARCH MARKET CONDITIONS

Air New Zealand carried 1,507,000 passengers during the month of March, 8.5%
more than the same period last year. Revenue passenger kilometres (RPKs) were
14.1% higher on a capacity (ASKs) increase of 10.1%. Group load factor was up
3.1 percentage points.

Short Haul passenger numbers were up 7.2%, while in the Domestic market
demand (RPKs) and capacity (ASKs) increased by 7.5% and 6.2% respectively.
Domestic load factor was 84.0%, up 1.0 percentage point.

Tasman/Pacific demand (RPKs) increased 10.6% while capacity (ASKs) increased
by 3.4%. Load factor on Tasman/Pacific increased 5.8 percentage points to
88.2%.

Long Haul passenger numbers increased 18.9% when compared to March last year,
with demand (RPKs) up 18.2% and capacity (ASKs) up 15.2%. Load factor on Long
Haul routes was 87.1%, up 2.2 percentage points.

On North American/UK routes, demand (RPKs) increased 2.5% with capacity
(ASKs) decreasing 0.3%. Load factor was up 2.4 percentage point to 87.8%.

Demand (RPKs) increased 50.3% on Asia/Japan routes, with capacity (ASKs)
increasing by 46.7% due to the commencement of flying on the new
Auckland-Singapore route and increased frequencies on the Auckland-Tokyo
route. Load factor increased 2.0 percentage points to 86.1%.

Group-wide yields for the financial year to date were up 0.7% on the same
period last year. Short Haul yields were up 2.1%, while Long Haul yields were
down 0.6%. Removing the impact of foreign exchange, Group-wide yields were up
1.9%.

COMPANY NEWS

AIR NEW ZEALAND TO LAUNCH DIRECT AUCKLAND-HOUSTON ROUTE

Air New Zealand announced last week that it will start flying to Houston,
Texas from December this year, opening up a direct connection between New
Zealand and America's South for the first time.

The airline will fly its completely refitted Boeing 777-200 aircraft between
Auckland and Houston up to five times a week opening up the state of Texas as
well as popular nearby tourist states such as Louisiana and Florida.

The announcement means Air New Zealand will soon be offering direct services
to five popular North American destinations - Los Angeles, San Francisco,
Vancouver, Hawaii and Houston.

Air New Zealand Chief Executive Officer Christopher Luxon says the airline is
hugely excited to be adding Houston to its list of international
destinations, particularly as the move comes hard on the heels of the
airline's recent announcement that it will also begin flying to Buenos Aires,
Argentina, in December.

AIR NEW ZEALAND ACQUIRES ANALYTICS BUSINESS IN JOINT VENTURE

Air New Zealand and Aimia, a Canada based data-driven marketing and loyalty
analytics company recently announced the joint purchase of the 11Ants
Analytics business.

11Ants Analytics was born out of Waikato University research and was founded
and developed by WaikatoLink, the University's commercial arm.

11Ants has developed an innovative cloud-based retail analytics platform. The
solution allows retailers such as supermarkets, fuel retailers, home
improvement, fashion, pharmacies and department stores to obtain actionable
insights from their raw transactional and customer data in order to
understand their customers better and create deeper customer relationships.

The joint venture will see 11Ants Analytics' business expand into the 20
countries Aimia operates in, across several industries including the retail
and travel sectors.

AIR NEW ZEALAND TO FLY OVER 650,000 MORE DOMESTIC SEATS IN FY16

Air New Zealand will increase its total domestic capacity by more than
650,000 seats in the coming financial year.

Increased flight frequencies and the airline's fleet modernisation programme,
which will see the domestic jet fleet continue to transition from Boeing 737s
to more modern larger A320 aircraft, are behind this substantial growth.

Most of the additional seats will be deployed on three key domestic routes:

-Around 180,000 more seats will be offered between Christchurch and Auckland
through a combination of extra frequency and moving to the larger A320s

-110,000 more seats will be offered between Queenstown and Auckland as a
result of increased flight frequency

-135,000 more seats will be offered between Auckland - Wellington as a result
of upgauging to A320s

Capacity will also increase between Christchurch and Queenstown, with more
than 20,000 new seats added to the route.

AIR NEW ZEALAND COMPLETES SALE OF SUBSIDIARY TAE

Air New Zealand has completed the divestment of subsidiary TAE, an Australian
based aerospace engineering and maintenance specialist, to the company's
Australian management team.
End CA:00263352 For:AIR    Type:MONTHLY    Time:2015-04-21 10:38:31