Slides
Page 1
1
Page 2
22 A I R N E W Z E A L A N D 2 0 2 6 A N N U A L M E E T I N G 2 This presentation is given on behalf of Air New Zealand Limited (NZX: AIR and AIR030; ASX: AIZ). The information in this presentation: • is provided for general purposes only and is not an offer or invitation for subscription, purchase, or a recommendation of securities in Air New Zealand. • should be read in conjunction with, and is subject to, Air New Zealand’s Group financial statements for the year ended 30 June 2026, prior annual and interim reports and Air New Zealand’s market releases on the NZX and ASX. • is current at the date of this presentation, unless otherwise stated. Air New Zealand is not under any obligation to update this presentation after its release, whether as a result of new information, future events or otherwise. • may contain information from third parties. No representations or warranties are made as to the accuracy or completeness of such information. • refers to the year ended 30 June 2026 unless otherwise stated. • contains forward-looking statements of future operating or financial performance. The forward-looking statements are based on management’s and directors’ current expectations and assumptions regarding Air New Zealand’s businesses and performance, the economy and other future conditions, circumstances and results. These statements are susceptible to uncertainty and changes in circumstances. Air New Zealand’s actual future results may vary materially from those expressed or implied in its forward-looking statements and undue reliance should not be placed on any forward-looking statements. • contains statements relating to past performance which are provided for illustrative purposes only and should not be relied on as a reliable indicator of future performance. • is expressed in New Zealand dollars unless otherwise stated and figures, including percentage movements, are subject to rounding. • any reference to a year refers to the financial year ending 30 June, unless otherwise stated. Air New Zealand, its directors, employees and/or shareholders shall have no liability whatsoever to any person for any loss arising from this presentation or any information supplied in connection with it. Nothing in this presentation constitutes financial, legal, regulatory, tax or other advice. Non-GAAP financial information The following non-GAAP measures are not audited: Adjusted CASK, Net Debt, and EBITDA. Amounts used within the calculations are derived from the audited Group financial statements and Five-Year Statistical Review contained in the 2026 Annual Report. The non-GAAP measures are used by management and the Board of Directors to assess the underlying financial performance of the Group in order to make decisions around the allocation of resources. Refer to Slide 39 for a glossary of the key terms used in this presentation. FORWARD -LOOKING STATEMENTS AND DISCLAIMER
Page 3
33 A I R N E W Z E A L A N D 2 0 2 6 A N N U A L M E E T I N G 3 Chair’s address CEO’s address Questions on 2026 performance Resolutions and voting General questions Order of meeting
Page 4
44 A I R N E W Z E A L A N D 2 0 2 6 A N N U A L M E E T I N G 4 Laurissa Cooney Alison Gerry Dame Therese Walsh (Chair) Neal Barclay Dean Bracewell 4 Larry De Shon Claudia Batten Board of Directors
Page 5
55 A I R N E W Z E A L A N D 2 0 2 6 A N N U A L M E E T I N G 5 5 Virtual meeting platform and online assistance Help Number Voting Card Question Box
Page 6
6 6A I R N E W Z E A L A N D 2 0 2 6 A N N U A L R E S U L T S 6 Chair’s address Dame Therese Walsh – Chair
Page 7
77 A I R N E W Z E A L A N D 2 0 2 6 A N N U A L M E E T I N G 7 Engine availability improved late in the financial year. Residual risks remain but the airline enters 2027 in a considerably more reliable fleet position Through the extraordinary efforts of our people across the airline, we delivered a significant step-change in operational performance, with on-time performance and customer satisfaction reaching strong levels by the end of 2026 Financial performance was significantly and adversely impacted by high fuel prices resulting from the Middle East conflict and by engine availability issues We reset our strategy around three strategic pillars; customer first, targeted growth, and resilient and future fit, to deliver sustainable returns to shareholders over time Continuing to build momentum on underlying cost management and profit improvement – delivered $94m of incremental transformation benefits in 2026 and identified an additional ~$135m of annualised savings, to accrue from 2027 2026 was a year of rebuilding our fleet, demonstrating operational resilience and setting Our Future strategy
Page 8
8 A I R N E W Z E A L A N D 2 0 2 6 A N N U A L R E S U L T S 8 ASKs up 1.3% Return of grounded aircraft offset by capacity response to elevated fuel prices 16.0m passengers flown up 0.6% on 2025 > 5.4m loyalty members Up 8.3% on 2025 External forces impacted earnings but we delivered improvements in operational performance $336m loss before taxation Compared to earnings before taxation of $164m1 in 2025 ~$465m adverse impact to 2026 earnings before tax Engine issues ~$190m2, net fuel price impact ~$135m and $139m3 higher aircraft maintenance costs $6.1b passenger revenue up 4.8% on 2025 AirlineRatings.com Seven Star PLUS safety-rated airline 2026 1. 2025 earnings before taxation restated. Refer to Note 27 of the 2026 Group financial statements. 2. This estimate was calculated based on internal modelling using operational assumptions, including capacity, passenger demand, revenue yield, disruption costs and historical performance across affected routes. 3. Total maintenance cost year on year increase was $144 million, including FX. 4. On-time performance (OTP) refers to ’A15’, which is an industry-standard measure of arrivals within 15 minutes of scheduled arrival time. RASK up 3.4% Increased yield in response to higher fuel prices on constrained capacity Passenger Load Factor 83.7% up 0.3pts on 2025 Customer satisfaction 84.5 H2 2026, up 0.9pts from 2025 On-time Performance3 84.0% H2 2026, up 6.5pts from 2025 2026 year in review $94m of incremental transformation benefits
Page 9
99 A I R N E W Z E A L A N D 2 0 2 6 A N N U A L M E E T I N G 9 Prior to the Middle East conflict, the airline would have expected, in its central case, to return to profitability in the 2027 financial year, reflecting the underlying improvements in the business. However, as mentioned at the 2026 year end result, there remains uncertainty surrounding the Middle East conflict, and in fact the volatility of jet fuel prices has escalated further since then. Jet fuel prices have increased from around US$150 per barrel at the end of August to currently around US$170 per barrel – and this fluctuates by the day. As a result, the airline is not in a position to provide earnings guidance for the 2027 financial year at this time. But we are controlling what we can control and while the major factors that impacted the 2026 financial result are expected to have some impact in the 2027 financial year, these will all be to a lesser extent: • Disruption from engine availability is reducing substantially as aircraft return to service, with a financial impact of between $70 million to $90 million in 2027 from residual committed costs, compared with $190 million impact in 2026. • Maintenance costs are expected to be $50 million to $100 million lower in 2027 than in 2026. We are also seeing encouraging inbound demand, with strong forward bookings into New Zealand. This is a positive signal for tourism and for the country more broadly. New Zealand remains a highly desirable destination, and our investment in our onboard product and unique Kiwi hospitality puts Air New Zealand in a strong position to bring more international visitors to our shores. The airline expects the 2027 financial year to be both a transition and recovery year, with operational performance continuing to improve despite elevated fuel prices weighing on profitability. We also expect the range of initiatives implemented in response to higher fuel costs to offset a greater proportion of the impact compared with the prior year. We remain focused on executing our strategic priorities, improving financial performance and positioning the airline for long-term sustainable returns. 2027 Outlook
Page 10
10 A I R N E W Z E A L A N D 2 0 2 6 A N N U A L R E S U L T S 10 CEO’s address Nikhil Ravishankar – CEO
Page 11
1111 A I R N E W Z E A L A N D 2 0 2 6 A N N U A L M E E T I N G 11 Te Pae Hou | Our Future: delivering against three strategic priorities Customer first What we are doing now • Granular, clean-sheet schedule implementation • Fine tune premium service, product and lounges • Investment in new aircraft and interior product • Further improve disruption management • Dual Koru lounge proposition • Deliver transition to offer order / NDC (Next Gen retailing) • Shift from above-the-line to precision marketing Targeted growth • Targeted, profitable network growth • Loyalty transformation and partner expansion • Revenue diversification What we are doing now • Pivot to inbound premium leisure growth • New 787s and A321neos – fit for mission • Strengthen hub advantage and alliance network • Grow SME market share • Optimise inbound tourism to domestic network • Regional connectivity and partnerships • Maximise flight-adjacent revenue growth • Continue loyalty partner expansion Resilient and future fit What we are doing now • Cost out and labour productivity programmes • Engineering and maintenance team transformation • Unwind of cost inefficiencies as fleet returns • New deliveries to drive superior operating economics • Rephase 787 aircraft deliveries • Restore capital management metrics post fuel crisis • Advocacy and bilateral airport negotiations Delivered to Date 1. On-time performance (OTP) refers to ’A15’, which is an industry-standard measure of arrivals within 15 minutes of scheduled arrival time. 2. Relative unit economics of A321neo vs. A320ceo and of 787 vs. 777-300ER depends on sector flown and fuel price, among other factors. 84.0% H2 2026 OTP1 (+6.5pts vs. 2025) 11 / 14 787 retrofits complete; the balance by end of November 2026 $94 million incremental transformation benefits; Additional $135 million annualised cost savings identified Up to 20% CASK efficiency2 from new/returning fleet 84.5 H2 2026 CSAT (+0.9pts vs. 2025) #1 Randstad NZ #1 most attractive employer for three consecutive years (2023 - 2025) and nine times overall • Safe, reliable and punctual • Unique Kiwi service and innovative products • Deliver smarter, more relevant offers • Cost transformation • Financially sustainable regional network • Delivering on our capital management metrics
Page 12
1212 A I R N E W Z E A L A N D 2 0 2 6 A N N U A L M E E T I N G 12 Key customer metrics improved in 2026 Investment in the customer proposition, operating reliability and in our people are delivering positive customer results • On-time performance finished the 2026 year with continued momentum, at 84.0% in the second half of the year, up from 77.5% in 2025 • Granular, clean-sheet schedule implementation • Commenced the Next Gen Kiosk rollout and a new and improved web check-in • Successfully trialled Starlink on the domestic network • Improved disrupt self-service for customers, empowering customers to find a new flight that suits them best • Continued introduction of retrofitted aircraft, with Business Premier +3% CSAT higher than the previous product • On time performance improved further in August, with 85.3% of flights arriving within 15 minutes of schedule – up from 83.1% in July and 81.8% for the same time last year. This is well above the global average for airline on-time performance which was 73.1% in August. 1. On-time performance (OTP) refers to ’A15’, which is an industry-standard measure of arrivals within 15 minutes of scheduled arrival time. 2025 H2 2026 H2 2026 vs 2025 On-time performance1 77.5% 84.0% +6.5pts Customer satisfaction (“CSAT”) 83.6 84.5 +0.9pts Controllable cancellations 2.2% 1.3% +0.9pts
Page 13
13 13 TASMAN & PACIFIC ISLANDS ASIA NORTH AMERICA NEW ZEALAND DOMESTIC • Higher inbound passenger fares from across Asia • Premium cabin mix and revenue growth in Q4 driving elevated RASK • Softer cargo volumes through 2026, with improved yields • Reduced passenger demand offset by increased yield in response to increased fuel price • Capacity management to match demand, with up-gauging being explored on routes with strong demand • Flat inbound passenger demand from North America • Sales from New Zealand remained soft, impacted by weak NZD • Softer cargo volume through 2026, with improved yields Passengers +0.4% ASKs +1.1% Load factor change (0.5 pts) RASK2 +1.6% Passengers (0.9%) ASKs +0.5% Load factor change +0.2 pts RASK2 0.2% Passengers +5.2% ASKs +7.7% Load factor change (1.4 pts) RASK2 (0.1%) Premium cabin revenue growth +14% Economy cabin revenue growth +3% Ancillary revenue +12% PRODUCT MIX • Solid passenger growth, underpinned by strong inbound Australian demand across 2026 • Capacity growth through delivery of two new A321neo leased aircraft in the past 2 years 1. Figures represent year-on-year change in 2026 compared to 2025. 2. RASK is excluding FX and unused customer credit breakage. Passengers (0.6%) ASKs (4.3%) Load factor change +2.8 pts RASK2 +12.1% Higher inbound volumes across international markets. New Zealand outbound and domestic demand remains soft
Page 14
1414 A I R N E W Z E A L A N D 2 0 2 6 A N N U A L M E E T I N G 14 Next Generation revenue management across the full network Direct Ancillary buy-ups Contact Centre efficiencies, including the roll out of Live Chat Koru programme transformation Automated disrupt rebooking system Cargo Revenue Management transformation Transformation initiatives delivered an incremental $94 million of benefits in 2026
Page 15
15 15 Return of grounded aircraft means the airline ends 2026 in a materially better place than when it started Peak AOG1 Now 787-9 A20/1neo 787 A320/1neo 6 AOG of 20 aircraft 5 AOG of 14 aircraft 1-2 AOG of 20 aircraft 0-1 AOG of 14 aircraft 1. Aircraft On Ground or “Grounded Aircraft”. Presented in this slide as aircraft grounded solely as a result of the engine issues. Does not include 2 aircraft currently in maintenance and retrofit. 2. Teal indicates aircraft on ground; purple indicates aircraft available. 15 The airline is focused on mitigating residual risk and unwinding engine availability related costs • Last of the 787s returned from long-term storage in June 2026, expect up to 2 x A320/1neos to be AOG through 2027 • Of the four short-term leased aircraft used in 2026, one has been returned, one is being returned now, and the remaining two in 2028 • Renegotiating new compensation terms with Rolls-Royce and Pratt & Whitney • While grounded aircraft are returned from long-term storage, there will still be residual risks and costs to work through, but the airline enters 2027 in a considerably more reliable fleet position 787 A320/1neo 4 leased aircraft to maintain capacity 15 extra engines on hand 3 dry leases to maintain capacity 10 extra engines on hand
Page 16
1616 A I R N E W Z E A L A N D 2 0 2 6 A N N U A L M E E T I N G 16 • Forecast investment of ~$2.7 billion in aircraft and associated assets through to 20312 • We are in active negotiations with Boeing to rephase the delivery profile of 787 aircraft, smoothing the capital investments to support capacity growth • There are further deliveries beyond 2031 • Chart includes the cost of interior retrofit of 14 existing 787 aircraft and refresh of seven 777 aircraft • Estimated remaining cost of ~$200 million for both programmes over the next ~2 years • 787 retrofit completed by end of calendar year 2026 • First 777 cabin refresh starting early calendar year 2027 • In 2027 we expect incremental depreciation of between $110 million to $130 million, driven largely by 787 retrofit and new 787 deliveries.1. Includes progress payments on aircraft and aircraft improvements (e.g. refurbishment); excludes engine maintenance. Assumes NZD/USD FX rate of 0.59. 2. Based on expected delivery dates, not contractual delivery dates. Fleet investment update$ millions Actual and forecast aircraft capital expenditure1 0 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 1,300 1,400 2024 2025 2026 2027 2028 2029 2030 2031 Forecast RephasedHistorical
Page 17
1717 A I R N E W Z E A L A N D 2 0 2 6 A N N U A L M E E T I N G 17 Questions on 2026 performance
Page 18
1818 A I R N E W Z E A L A N D 2 0 2 6 A N N U A L M E E T I N G 18 Resolution 1 Re-election of Dean Bracewell Resolution 2 Re-election of Laurissa Cooney Resolution 3 Election of Robert McDonald Resolution 4 Election of Campbell Wilson Resolutions for voting
Page 19
1919 A I R N E W Z E A L A N D 2 0 2 6 A N N U A L M E E T I N G 1919 Proxy and Postal Votes For Against Abstain Discretion Resolution 1: Re-election of Dean Bracewell 2,081,030,532 97.40% 43,964,629 2.06% 3,213,315 - 11,512,113 0.54% Resolution 2: Re-election of Laurissa Cooney 2,076,429,436 97.22% 47,981,449 2.25% 3,812,859 - 11,496,845 0.54% Resolution 3: Election of Robert McDonald 2,118,983,346 99.18% 6,068,219 0.28% 3,126,401 - 11,542,623 0.54% Resolution 4: Election of Campbell Wilson 2,120,418,999 99.22% 5,064,395 0.24% 2,693,216 - 11,543,979 0.54% Proxies and postal votes received As at 23 September
Page 20
2020 A I R N E W Z E A L A N D 2 0 2 6 A N N U A L M E E T I N G 20 20 Re-election of Dean Bracewell Resolution 1
Page 21
2121 A I R N E W Z E A L A N D 2 0 2 6 A N N U A L M E E T I N G 21 21 Re-election of Laurissa Cooney Resolution 2
Page 22
2222 A I R N E W Z E A L A N D 2 0 2 6 A N N U A L M E E T I N G 22 22 Election of Robert McDonald Resolution 3
Page 23
2323 A I R N E W Z E A L A N D 2 0 2 6 A N N U A L M E E T I N G 23 23 Election of Campbell Wilson Resolution 4
Page 24
2424 A I R N E W Z E A L A N D 2 0 2 6 A N N U A L M E E T I N G 24 General Questions
Page 25
25A I R N E W Z E A L A N D 2 0 2 6 A N N U A L R E S U L T S
Page 26
26 26A I R N E W Z E A L A N D 2 0 2 6 A N N U A L R E S U L T S 26 Supplementary Information
Page 27
2727 A I R N E W Z E A L A N D 2 0 2 6 A N N U A L M E E T I N G 27 30 Jun 2026 30 Jun 2025 Capital management targets Gross debt1 (3,188) (2,838) Cash, restricted deposits and net open derivatives1 1,264 1,758 Net debt1 (1,924) (1,080) Gross debt/EBITDA 6.2x 3.0x Net debt/EBITDA 3.8x 1.2x Net Debt to EBITDA ratio of 1.5x to 2.5x Gearing 53.3% 35.9% Return on invested capital (ROIC)2 (7.8)% 7.3% ROIC above pre-tax WACC Total liquidity1 1,593 1,686 $1.2 billion to $1.5 billion Moody's rating Baa1 negative (investment grade) Baa1 stable (investment grade) Investment grade Shareholder distributions No dividends declared 1.25 cps interim and 1.25 cps final unimputed ordinary dividends Ordinary dividend payout ratio of 40% to 70% of net profit after taxation (NPAT)3 1. In $ millions. 2. Operating earnings before finance costs and taxation divided by the average capital employed. 3. NPAT is calculated on a rolling twelve-month basis. Key capital management metrics 27
Page 28
2828 A I R N E W Z E A L A N D 2 0 2 6 A N N U A L M E E T I N G 28 Jun 2026 $M Jun 2025 $M Movement $ Movement % Operating revenue 7,016 6,755 261 3.9% (Loss) / earnings before taxation (336) 164 (500) (305%) Net (loss) / profit after taxation (242) 108 (350) (324%) Operating cash flow 819 940 (121) (13%) Cash position 989 1,436 (447) (31%) Ordinary dividends declared - 2.50 cps (2.50) cps (100%) Financial overview
Page 29
2929 A I R N E W Z E A L A N D 2 0 2 6 A N N U A L M E E T I N G 29 1. Calculation based on numbers before rounding. 2. This is RASK excluding $11 million in unused customer flexibility credit breakage (June 2025: $35 million) which has been recognised within passenger revenue. Group performance metrics Jun 2026 Jun 2025 Movement1 % Passengers carried (‘000s) 16,010 15,907 0.6% Available seat kilometres (ASKs, millions) 41,046 40,501 1.3% Revenue passenger kilometres (RPKs, millions) 34,346 33,769 1.7% Load factor 83.7% 83.4% 0.3 pts Passenger revenue per ASKs as reported (RASK, cents) 14.9 14.4 3.4% Passenger revenue per ASKs, excluding FX (RASK, cents) 14.8 14.4 2.2% Passenger revenue per ASKs excluding FX and unused credit breakage (RASK, cents)2 14.7 14.4 2.6%
Page 30
3030 A I R N E W Z E A L A N D 2 0 2 6 A N N U A L M E E T I N G 30 1. Calculation based on numbers before rounding. 2. This is RASK excluding $3 million in unused customer flexibility credit breakage (June 2025: $10 million) which has been recognised within passenger revenue. Domestic Jun 2026 Jun 2025 Movement1 % Passengers carried (‘000s) 10,048 10,142 (0.9%) Available seat kilometres (ASKs, millions) 6,439 6,409 0.5% Revenue passenger kilometres (RPKs, millions) 5,351 5,311 0.8% Load factor 83.1% 82.9% 0.2 pts Passenger revenue per ASKs as reported (RASK, cents) 30.1 30.1 0.3% Passenger revenue per ASKs, excluding FX (RASK, cents) 30.0 30.1 (0.2%) Passenger revenue per ASKs excluding FX and unused credit breakage (RASK, cents)2 30.0 29.9 0.2%
Page 31
3131 A I R N E W Z E A L A N D 2 0 2 6 A N N U A L M E E T I N G 31 1. Calculation based on numbers before rounding. 2. This is RASK excluding $4 million in unused customer flexibility credit breakage (June 2025: $11 million) which has been recognised within passenger revenue. Tasman & Pacific Islands Jun 2026 Jun 2025 Movement1 % Passengers carried (‘000s) 4,041 3,840 5.2% Available seat kilometres (ASKs, millions) 12,454 11,562 7.7% Revenue passenger kilometres (RPKs, millions) 10,657 10,055 6.0% Load factor 85.6% 87.0% (1.4) pts Passenger revenue per ASKs as reported (RASK, cents) 13.3 13.3 0.5% Passenger revenue per ASKs, excluding FX (RASK, cents) 13.2 13.3 (0.6%) Passenger revenue per ASKs excluding FX and unused credit breakage (RASK, cents)2 13.1 13.2 (0.1%)
Page 32
3232 A I R N E W Z E A L A N D 2 0 2 6 A N N U A L M E E T I N G 32 1. Calculation based on numbers before rounding. 2. This is RASK excluding $4 million in unused customer flexibility credit breakage (June 2025: $14 million) which has been recognised within passenger revenue. International long-haul Jun 2026 Jun 2025 Movement1 % Passengers carried (‘000s) 1,921 1,925 (0.2%) Available seat kilometres (ASKs, millions) 22,153 22,530 (1.7%) Revenue passenger kilometres (RPKs, millions) 18,338 18,403 (0.4%) Load factor 82.8% 81.7% 1.1 pts Passenger revenue per ASKs as reported (RASK, cents) 11.4 10.6 7.5% Passenger revenue per ASKs, excluding FX (RASK, cents) 11.2 10.6 5.7% Passenger revenue per ASKs excluding FX and unused credit breakage (RASK, cents)2 11.2 10.6 6.1%
Page 33
3333 A I R N E W Z E A L A N D 2 0 2 6 A N N U A L M E E T I N G 33 Available Seat Kilometres (ASKs) Number of seats operated multiplied by the distance flown (capacity) Cost/ASK (CASK) Operating expenses divided by the total ASK for the period Earnings before interest, tax, depreciation and amortisation (EBITDA) Operating earnings before depreciation and amortisation, finance costs and taxation Gross Debt Interest-bearing liabilities and lease liabilities Net Debt Interest-bearing liabilities and lease liabilities less bank and short-term deposits, net open derivatives held in relation to interest-bearing liabilities and lease liabilities, and interest-bearing assets Cash, restricted deposits and net open derivatives Bank and short-term deposits, interest-bearing assets and net open derivatives held in relation to interest-bearing liabilities and lease liabilities Liquidity Cash and cash equivalents (which excludes restricted deposits) plus the outstanding amount of any revolving facility available to be drawn Passenger Load Factor RPKs as a percentage of ASKs Passenger Revenue/ASK (RASK) Passenger revenue for the period divided by the total ASKs for the period Revenue Passenger Kilometres (RPKs) Number of revenue passengers carried multiplied by the distance flown (demand) Return on Invested Capital (ROIC) Operating earnings before net finance costs and taxation divided by the average capital employed The following non-GAAP measures are not audited: Adjusted CASK, Net Debt and EBITDA. Amounts used within the calculations are derived from the Group financial statements and Five-Year Statistical Review contained in the 2026 Annual Report. The non-GAAP measures are used by management and the Board of Directors to assess the underlying financial performance of the Group in order to make decisions around the allocation of resources. Glossary of key terms
Page 34
3434 A I R N E W Z E A L A N D 2 0 2 6 A N N U A L M E E T I N G 34 Resources Contact information Email: investor@airnz.co.nz Share registrar: enquiries.nz@cm.mpms.mufg.com Investor website: www.airnewzealand.co.nz/investor-centre Monthly traffic updates: www.airnewzealand.co.nz/monthly-investor-updates Corporate governance: www.airnewzealand.co.nz/corporate-governance Sustainability: https://www.airnewzealand.co.nz/sustainability Find information on Air New Zealand
Page 35
35