Ann: MONTHLY: AIR: Air NZ Investor Update - Janua

• Release Date: 21/02/14 17:42
• Summary: MONTHLY: AIR: Air NZ Investor Update - January 2014
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					AIR
21/02/2014 15:42
MONTHLY

REL: 1542 HRS Air New Zealand Limited (NS)

MONTHLY: AIR: Air NZ Investor Update - January 2014

AIR NEW ZEALAND INVESTOR UPDATE JANUARY 2014

CONTENTS
- January market conditions
- Company news
- Operating statistics table (see attachment)

JANUARY MARKET CONDITIONS

Air New Zealand carried 1,039,000 passengers during the month of January,
2.8% more than the same period last year. Revenue passenger kilometres (RPKs)
increased 0.3% on a capacity (ASKs) decrease of 0.1%. Group load factor was
87.5%, up 0.3 of a percentage point.

Short Haul passenger numbers were up 4.1% on the same period last year.
Demand (RPKs) increased in the Domestic market by 5.4%, while capacity
increased 7.0%. Domestic load factor was down 1.2 percentage points to 82.4%.

Tasman/Pacific demand (RPKs) increased 7.3%, with capacity (ASKs) also
increasing by 7.3%. Load factor for Tasman/Pacific was unchanged at 86.6%.

Long Haul passenger numbers decreased 5.2% compared to January last year,
with demand (RPKs) and capacity (ASKs) down 4.4% and 5.6% respectively. Load
factor increased by 1.1 percentage points to 89.4%.

On North America/UK routes, demand (RPKs) increased 8.7% with capacity (ASKs)
increasing by 10.2%. Load factor decreased 1.3 percentage points to 90.2%.

Demand (RPKs) was down 26.1% on Asia/Japan/UK routes, with capacity (ASKs)
decreasing by 29.5% due to the withdrawal from the Hong Kong-London and
Auckland-Osaka routes. Load factor increased 4.1 percentage points to 87.6%.

Group-wide yields for the financial year to date were up 0.2% on the same
period last year. Short Haul yields were down 1.2%, while Long Haul yields
were up 0.6%. Removing the impact of foreign exchange, Group-wide yields were
up 2.6%.
In January, 87.8% of Air New Zealand's Domestic Jet flights departed within
10 minutes of scheduled departure time.

COMPANY NEWS
New Board member appointed

Air New Zealand recently announced the appointment of former Fonterra CFO,
Jonathan Mason as a director of the Company with effect from 1 March 2014. Mr
Mason will replace long serving director and former chairman John Palmer who
will retire from the Board on 31 March.

John Palmer served as Chairman of Air New Zealand from November 2001 until he
resigned from that role in September 2013.
Commenting on John Palmer's retirement, Chairman Tony Carter said: "It would
be hard to overstate the enormous contribution John has made, initially to
the survival and then to the successful rebuilding of Air New Zealand. During
the 12 years of his oversight of the Board and management, the airline has
through successive CEO's become a truly iconic New Zealand company and a
global leader in the aviation industry. John's professional, approachable and
inclusive style with the Board and management has steered the company through
substantial change at every level. My colleagues on the Air New Zealand Board
and I have all benefited from the considered guidance and friendship John has
extended to all of us."

Mr Mason has extensive international financial experience in USA and New
Zealand having held senior management positions at Carter Holt Harvey,
International Paper Company, Cabot Corporation and most recently as CFO of
Fonterra Cooperative. He is currently a director of Vector Limited and Zespri
Group Ltd.

"We are very pleased to be able to welcome Jonathan to our Board," said Tony
Carter. "His international and financial experience with other highly
regarded New Zealand companies in competitive markets brings a combination of
skills which will contribute to the ongoing growth and success of Air New
Zealand."
End CA:00247362 For:AIR    Type:MONTHLY    Time:2014-02-21 15:42:10