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

• Release Date: 23/10/15 16:50
• Summary: MONTHLY: AIR: Air New Zealand Investor Update (Op Stats) - September 2015
• Price Sensitive: No
• Download Document  4.65KB

					AIR
23/10/2015 16:50
MONTHLY
PRICE SENSITIVE
REL: 1650 HRS Air New Zealand Limited (NS)

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

Contents
o September market conditions
o Company news
o Operating statistics table

September market conditions
Air New Zealand carried 1,433,000 passengers during the month of September,
7.7% more than the same period last year. Revenue passenger kilometres (RPKs)
were 15.2% higher on a capacity (ASKs) increase of 13.6%. Group load factors
were up 1.1 percentage points to 85.4%.

Short Haul passenger numbers were up 5.6%.  In the Domestic market demand
(RPKs) and capacity (ASKs) increased by 6.6% and 9.0%, respectively. Domestic
load factor was 78.0%, down 1.7 percentage points.

Tasman/Pacific demand (RPKs) increased 6.2% while capacity (ASKs) increased
by 2.6%. Load factor on Tasman/Pacific increased 2.9 percentage points to
85.7%.

Long Haul passenger numbers increased 25.1% when compared to September last
year, with demand (RPKs) up 23.5% and capacity (ASKs) up 22.6%. Load factor
on Long Haul routes was 87.4%, up 0.6 percentage points.

On North American/UK routes, demand (RPKs) increased 11.0% with capacity
(ASKs) increasing 13.5%. Load factor was down 2.0 percentage points to 87.4%.

On Asia/Japan/Singapore routes, demand (RPKs) increased 50.8%, with capacity
(ASKs) increasing by 40.7% due to the new Auckland-Singapore route and larger
B787-9 aircraft operating on the Auckland-Shanghai route. Load factor
increased 5.8 percentage points to 87.3%.

Group-wide yields for the financial year to date were down 1.1% on the same
period last year. Short Haul yields were flat while Long Haul yields were up
0.9%. Removing the impact of foreign exchange, Group-wide yields were down
3.8%.

Company news

Air New Zealand Annual Shareholder Meeting and 2016 Outlook

Air New Zealand held their Annual Shareholder Meeting on 7 October 2015.  The
Board provided shareholders with an update on the outlook for the 2016
financial year, as follows:

At the 2015 annual results we said that given the current known operating
environment, along with increased capacity and improved operating
efficiencies, we expect to achieve significant earnings growth in the coming
year.  This view has strengthened.

We are very pleased with the first quarter performance of the 2016 financial
year and the business is on target to exceed profit before tax of $400
million for the first half of this financial year.  This outlook excludes
equity earnings from our Virgin Australia shareholding.

The company is very well positioned with:
o buoyant tourism to New Zealand;
o a lower current fuel price environment;
o an increasingly efficient fleet; and
o a company with proven agility in responding to changing circumstances

As a consequence, we are confident of our ongoing strong performance in the
coming years.

At the Annual Shareholder Meeting, shareholders also passed all resolutions
including the re-election of Antony Carter as a director and the re-election
of Robert Jager as a director. Additionally, shareholders approved an
increase of $105,000 to the Directors remuneration cap from $995,000 to
$1,100,000.  The Board had not had an increase in directors' remuneration
since 2007.  This increase therefore represented approximately 1.1% increase
per annum since 2007.

United Airlines enters NZ market in cooperation with Air NZ

In early October, United Airlines announced that it will enter the New
Zealand market, launching a San Francisco - Auckland service from July next
year and Air New Zealand welcomes this announcement.

Air New Zealand and United Airlines have a longstanding partnership and in
April this year signed a Statement of Intent to deepen and further define
this alliance on routes between New Zealand and mainland USA.

United Airlines has supported Air New Zealand in launching its new Auckland -
Houston service and today's announcement is another important step in
expanding the partnership, with the airlines working together to promote both
carriers' services between Auckland and San Francisco.

Subject to United Airlines obtaining the necessary regulatory approvals it
will begin operating a three times weekly 787-8 service between San Francisco
and Auckland from July, moving to daily services operated by a larger 787-9
aircraft from November 2016.

Air New Zealand currently operates a daily service from Auckland to San
Francisco, 18 return services per week from Auckland to Los Angeles, four
services per week to Vancouver and four services per week to Honolulu. From
December 15 the airline will also commence direct services from Auckland to
Houston five times per week.
End CA:00272282 For:AIR    Type:MONTHLY    Time:2015-10-23 16:50:29