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

• Release Date: 24/06/15 14:42
• Summary: MONTHLY: AIR: Air New Zealand Investor Update (Op Stats) - May 2015
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					AIR
24/06/2015 14:42
MONTHLY
PRICE SENSITIVE
REL: 1442 HRS Air New Zealand Limited (NS)

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

CONTENTS

oTrading update
oMay market conditions
oCompany news
oOperating statistics table (please see attached)

TRADING UPDATE

The strong earnings momentum has continued in the second half of the year,
and the Company expects to report normalised earnings before taxation for the
current year of between $520 million and $530 million.

The Board has reviewed the FY16 financial plan and, given current known
circumstances, the Company continues to target earnings growth for the coming
year.

This guidance excludes equity earnings from the Virgin Australia
shareholding.

MAY MARKET CONDITIONS

Air New Zealand carried 1,030,000 passengers during the month of May, 4.0%
more than the same period last year. Revenue passenger kilometres (RPKs) were
8.9% higher on a capacity (ASKs) increase of 11.6%. Group load factor was
down 2.0 percentage points to 80.2%.

Short Haul passenger numbers were up 2.6%, while in the Domestic market
demand (RPKs) and capacity (ASKs) increased by 3.9% and 0.8% respectively.
Domestic load factor was 82.4%, up 2.6 percentage points.

Tasman/Pacific demand (RPKs) increased 1.5% while capacity (ASKs) increased
by 1.3%. Load factor on Tasman/Pacific increased 0.2 of a percentage point to
83.1%.

Long Haul passenger numbers increased 15.8% when compared to May last year,
with demand (RPKs) up 14.4% and capacity (ASKs) up 20.7%. Load factor on Long
Haul routes was 78.3%, down 4.3 percentage points.

On North American/UK routes, demand (RPKs) increased 4.1% with capacity
(ASKs) increasing 8.4%. Load factor was down 3.4 percentage points to 80.9%.

Demand (RPKs) increased 36.8% on Asia/Japan/Singapore routes, with capacity
(ASKs) increasing by 45.8% due to the new Auckland-Singapore route and larger
B787-9 aircraft operating on the Auckland-Shanghai route. Load factor
decreased 4.9 percentage points to 74.2%.

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 1.4%, both negatively impacted by foreign exchange movements. Removing
the impact of foreign exchange, Group-wide yields were up 1.0%.

COMPANY NEWS

AIR NEW ZEALAND REVEALS NEW LOUNGE DESIGN IN SYDNEY

On 22 May Air New Zealand revealed its new international network lounge
design with the opening of its ground breaking lounge at Sydney Airport.

The Sydney lounge is the first to carry the ultra-modern design that was
formulated in conjunction with award-winning global architectural firm
Gensler based on insights gleaned from the airline's high value customers
across multiple international markets.

The lounge measures more than 1,500sqm and features a mix of spaces to meet
the differing needs of around 300 guests, whether they're looking to relax
and refresh or plug in and get some work done before their flight.

Air New Zealand Chief Sales and Commercial Officer Cam Wallace was in Sydney
for the opening and said the launch was an important milestone in a wider
programme that will see the airline open a number of new and refurbished
lounges over the next two years.

"We have been investing heavily in enhancing our customer experience.
Airports are a key part of the customer journey and 18 months ago we embarked
on a $40 million programme to redevelop several of our lounges at some of the
busiest ports we fly to," said Mr Wallace.

The airline expects to open its flagship international lounge at Auckland
International Airport in August this year with similar new spaces planned in
Brisbane, Queenstown and a number of regional New Zealand ports over the next
two years.

AIR NEW ZEALAND AND AIR INDIA ANNOUNCE CODESHARE AGREEMENT

On 9 June Air New Zealand and Air India signed a codeshare agreement on
services between New Zealand and India providing greater access and choice to
travellers in both directions.

The deal will see Air New Zealand codeshare into several Indian cities over
multiple gateways.

Fellow Star Alliance carrier Air India will also be able to access the New
Zealand market on Air New Zealand services, including over the Tasman,
connecting its current Sydney and Melbourne services.

AIR NEW ZEALAND'S TRIPLE WIN AT SKYTRAX WORLD AIRLINE AWARDS

Air New Zealand has been awarded 'World's Best Premium Economy Class', 'Best
Premium Economy Class airline seat' and 'Best Premium Economy onboard
catering' in this year's World Airline Awards.

The airline swept the board, taking home all three 'Premium Economy' awards,
reaffirming Air New Zealand's superior Premium Economy experience.

Air New Zealand's Chief Marketing and Customer Officer, Mike Tod, said the
awards are a true reflection of the world class inflight product the airline
offers customers.

"These accolades are something that all Air New Zealander's can be very proud
of as we continue to innovate and find new ways to enhance the customer
journey," said Mr Tod.

In addition to scooping all three Premium Economy awards the Air New Zealand
managed Star Alliance Los Angeles Lounge won 'Best Airline Alliance Lounge'.
End CA:00266108 For:AIR    Type:MONTHLY    Time:2015-06-24 14:42:25