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

• Release Date: 26/06/14 16:04
• Summary: MONTHLY: AIR: Air New Zealand Investor Update (Op Stats) - May 2014
• Price Sensitive: No
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					AIR
26/06/2014 16:04
MONTHLY

REL: 1604 HRS Air New Zealand Limited (NS)

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

CONTENTS

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

MAY MARKET CONDITIONS

Air New Zealand carried 990,000 passengers during the month of May, 3.1% more
than the same period last year. Revenue passenger kilometres (RPKs) increased
4.3% on a capacity (ASKs) increase of 3.7%. Group load factor was 82.2%, up
0.5 of a percentage point.

The Short Haul passenger numbers were up 2.9%, with demand (RPKs) increasing
in the Domestic market by 2.7%, while capacity increased 7.9%. Domestic load
factor was down 4.1 percentage points to 79.8%.

Tasman/Pacific demand (RPKs) increased 5.1% while capacity (ASKs) increased
by 4.7%. Load factor on Tasman/Pacific was up 0.3 of a percentage point to
82.9%.

Long Haul passenger numbers increased 4.4% compared to May last year, with
demand (RPKs) and capacity (ASKs) up 4.4% and 1.9% respectively. Load factor
increased by 2.1 percentage points to 82.6%.

On North America/UK routes, demand (RPKs) increased 2.8% with capacity (ASKs)
increasing by 0.7%. Load factor increased 1.7 percentage points to 84.3%.

Demand (RPKs) was up 8.1% on Asia/Japan/UK routes, with capacity (ASKs)
increasing by 4.2%. Load factor increased 2.9 percentage points to 79.1%.

Group-wide yields for the financial year to date were up 1.0% on the same
period last year. Short Haul yields were up 0.3%, while Long Haul yields were
up 0.7%. Removing the impact of foreign exchange, Group-wide yields were up
3.3%.

In May, 83.6% of Air New Zealand's Domestic Jet flights departed within 10
minutes of scheduled departure time.

COMPANY NEWS

Further fleet upgrades

Air New Zealand recently announced further fleet investment with the purchase
of 13 new Airbus A320neo (new engine option) aircraft to refresh its
international narrow body fleet and an additional A320 to join its domestic
operation.

Air New Zealand Chief Executive Officer, Christopher Luxon, signed the
purchase agreement with Airbus Chief Operating Officer, Customers, John Leahy
at the International Air Transport Association's Annual General Meeting in
Doha, Qatar.

The A320neo aircraft will replace Air New Zealand's current fleet of 13 A320s
which operate the majority of the airline's Tasman and Pacific Island
services. Equipped with new generation engines and fuel efficient Sharklet
wing tip devices they're expected to deliver fuel savings of up to 15
percent.

The purchase agreement is for a combination of A321neo and A320neo aircraft.
The exact mix will be confirmed over time but will be a minimum of three
A321neo aircraft.
The A321neo aircraft will have 38 more seats than the A320s the airline
currently operates across the Tasman and to the Pacific, allowing for future
growth on these routes.

The first A321neo is due in late 2017 with the remainder of the aircraft
delivered at intervals through until 2019. The additional A320 for the
domestic fleet will be delivered in early 2015.

Shareholding in Virgin Australia now at 25.99%

Air New Zealand recently increased its shareholding in Virgin Australia to
25.99%, the maximum level permitted under the authorisation granted by the
Foreign Investment Review Board.
End CA:00252103 For:AIR    Type:MONTHLY    Time:2014-06-26 16:04:11