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 R E S U L T S 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 R E S U L T S 3 2026 Highlights 2026 Financial Performance Outlook Supplementary Information Contents
Page 4
4 4A 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 4 2026 Highlights Nikhil Ravishankar – Chief Executive Officer
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 R E S U L T S 5 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 6
6 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 6 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 7
7 7 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. 7 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 8
88 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 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) 9 / 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 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 R E S U L T S 9 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 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 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 10
10 10 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 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 R E S U L T S 11 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 12
12 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 12 2026 Financial Performance Richard Thomson – Chief Financial Officer (outgoing)
Page 13
1313 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 13 • Operating revenue $7.0 billion, up 3.9% on prior year • Passenger revenue $6.1 billion, up 4.8% on prior year • Cargo revenue $484 million, down 0.6% on prior year • Loss before taxation $336 million, compared to profit before tax of $164 million in 20251 • Net loss after taxation $242 million, compared to net profit after tax of $108 million in 20251 • Liquidity $1.6 billion2 (2025: $1.7 billion) and just above the target range of $1.2 billion to $1.5 billion. • Operating cashflow $819 million, compared to $940 million in 2025 • Net Debt to EBITDA 3.8x (2025: 1.2x)1 • No final dividend in line with Capital Management Framework (810) 574 222 164 (336) 2022 2023 2024 2025 2026 Covid-19 impacted period Earnings/(Loss) Before Taxation ($ millions) 1. 2025 earnings before taxation restated. Refer to Note 27 of the 2026 Group financial statements. 2. Includes $989 million cash and $604 million in undrawn funds under revolving facilities.. Middle East conflict Financial summary Engine availability issues from mid calendar year 2023 1
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 R E S U L T S 14 • Revenue and Other Income includes a $39m unfavourable movement in engine-related compensation received; $65m in 2026 compared to $104m in 2025 • Non-fuel costs saw moderate price inflation, with the exception of aviation system costs which increased more significantly • Maintenance costs increased due to lifecycle maintenance and additional maintenance costs on leased engines • This graph includes benefits of the $94 million transformation initiatives Profitability waterfall 1. Refer to Slide 35 for further details on fuel cost movement. 2. Full-time equivalent staff levels were broadly flat at ~11,700. Additional commentary
Page 15
1515 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 15 ~$465m adverse impact to 2026 earnings before taxation due to global engine issues, Middle East conflict and timing of lifecycle maintenance costs ~$190m Additional costs due to engine issues and delays (net of compensation received) Engine issues Continuing engine issues resulted in additional lease cost, reduced capacity and lost scale economies, partially offset by compensation received. $205m fuel price impact net of hedging Middle East conflict and fuel price crisis Jet fuel costs increased from US$88/barrel in 2025 to US$111/barrel in 2026. Compared to H2 forecast, earnings before tax was adversely impacted by ~$135m. ~$70m fuel price mitigation actions $139m Higher costs due to increased activity, timing of lifecycle maintenance events, and additional maintenance on leased engines Aircraft maintenance costs 2026 was a peak year for aircraft maintenance. We expect maintenance costs to be $50m to $100m lower in 2027 than in 2026.
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 R E S U L T S 16 While general inflation is moderating, aviation system costs - most importantly airport charges - continue to increase Aviation system costs continue to rise faster than general inflation Air New Zealand’s exposure to these charges was $142 million higher in 20261 The significant increase in AvSec and passenger levies is not expected to repeat in 2027, but landing charges are expected to continue running well ahead of CPI. Aviation system cost inflation 14% All other cost inflation (ex fuel) 3% Air navigation charges5.8% System-wide landing charge inflation6.8% CAA safety and AvSec security levies92% 1. Aviation system costs increased $142 million in 2026 compared to 2025, including a $83 million increase in direct costs in the Air New Zealand income statement, and $59 million increase in passenger charges and levies paid by customers and therefore impacting demand. 2. These charges and levies are not recognised as costs in the Air New Zealand financial statements, but are costs payable by customers. International passenger charges and levies2 15%
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 R E S U L T S 17 • Reported CASK increased 10.4%, largely due to increased jet fuel price and inefficiencies associated with fleet constraints. • Underlying CASK increased 4.8%, excluding the impact of fuel price and FX, primarily due to: • Non-fuel operating cost inflation of ~4.4% across the cost base • Increased maintenance activity, representing 0.32c/ASK of CASK increase • Increased aircraft operations and passenger services pricing and activity, representing 0.23c/ASK of CASK increase Unit cost impacted by fuel price, fleet constraints and continued price pressure across the aviation ecosystem 14.45 0.52 0.39 0.31 0.28 15.95 Reported CASK (cents) JUNE 2025 CASK RESTATED1 FUEL PRICE NON-FUEL COST INFLATION DISECONOMIES AND INEFFICIENCIES FOREIGN EXCHANGE JUNE 2026 CASK 1. 2025 has been restated. Refer to Note 27 of the 2026 Group financial statements.
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 R E S U L T S 18 Net debt increased in H1 2026 but was relatively flat in H2 2026, despite the impact of the elevated fuel prices on earnings 2025 Net Debt 213 Operating cashflow (693) (286) Non-cash lease additions (109) Other H1 2026 Net Debt 606 Operating cashflow (466) (81) Non-cash lease additions (28) Other 2026 Net Debt (1,080) (1,955) (1,924) Aircraft payments ($462m) Capitalised engine maintenance ($114m) Non-aircraft capex ($117m) EBITDA $164m Transportation sales in advance $166m Other working capital improvement1 $331m Interest and other ($55m) $million 1 Excludes non-cash working capital movements. 2 Capital expenditure is primarily acquisition of property, plant and equipment, right-of-use assets and intangibles from the 2026 Group Statement of Cash Flows. Capital Expenditure2 Capital Expenditure2 H1 2026 ($875m) H2 2026 +$31m Aircraft payments ($133m) Capitalised engine maintenance ($274m) Non-aircraft capex ($59m)
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 R E S U L T S 19 Outlook Nikhil Ravishankar – Chief Executive Officer Kris Cudmore – Chief Financial Officer
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 R E S U L T S 20 • 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 $130 million, driven largely by 787 retrofit and new 787 deliveries.1. Includes progress payments on aircraft and aircraft improvements (e.g. refurbishment); excludes engine maintenance. Refer to Slide 38 for fleet delivery table. Assumes NZD/USD FX rate of 0.59. 2. Based on expected delivery dates, not contractual delivery dates. Fleet investment update$ 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 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 R E S U L T S 21 Sector 2026 2027 ASKs (million) vs. 2025 vs. 2019 (pre-Covid) estimated % growth Capacity Outlook Commentary Domestic 6,439 +1% (9%) (2%) to 0% • H1 2027 impacted by tactical fuel-related capacity reductions • Expected delivery of 2 x new A321 in H2 2027 Tasman and Pacific Islands 12,454 +8% 2% +3% to +5% • New 787 deliveries in Q2 and return to service of grounded widebody aircraft in Q3 • New routes: Christchurch to Perth and Auckland to Western Sydney operating from October 2026 International long-haul 22,153 (2%) (17%) +2% to +4% • Return of grounded widebody aircraft available for service and 2 new 787 deliveries in 2027 • 787 retrofit completed by Nov 2026 and rollout of 777 refresh • New routes: Christchurch to Tokyo and Singapore. Increased capacity Auckland to Singapore and Auckland to Taipei • H1 will be affected by tactical fuel-related reductions, including changes from 777 to 787 • Strong inbound forward bookings for next 6 months. Group Capacity 41,046 +1% (11%) +2% to +4% In 2026 we were still operating at ~10% below pre-Covid capacity and passenger levels, but slightly up on 2025. Looking forward to 2027, capacity will partially recover with the return of the majority of historically grounded aircraft with improving inbound demand and strong international forward bookings. Capacity set to recover in 2027
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 R E S U L T S 22 ~60% hedged against Brent Crude oil price and USD for 2027 1. Includes cost of carbon and the associated hedging portfolio, in addition to SAF purchases. 2. As at 14 Aug 2026. 3. Assumes NZD/USD rate of 0.59. Scenarios assume US$5 barrel move in Brent and US$5 barrel move in Crack. 22 Fuel hedging • Mostly hedged in Brent Crude with ~20% overlay of Crack spread swaps to mitigate some basis risk in H1 2027 • Brent is predominantly hedged with collar structures, with a small layer of calls • Assuming an average jet fuel price of ~US$130 per barrel for 2027 (Brent ~US$80 per barrel and Crack ~US$50 per barrel) fuel cost would be ~$2.1 billion1 • 2027 hedges cover ~60% of estimated volumes of ~8.3 million barrels2 Foreign exchange hedging • US dollar is ~60% hedged for 2027 at NZD/USD ~0.59 Fuel hedge position2 Period Hedged volume (in barrels) % Brent Crude hedged H1 2027 3,280,000 80 H2 2027 1,620,000 38 2027 Fuel cost sensitivity1, 2, 3 100 110 120 130 140 150 160 1,400 1,600 1,800 2,000 2,200 2,400 2,600 Singapore Jet (USD per barrel) NZD total fuel cost (millions) Unhedged Hedged
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 R E S U L T S 23 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. Given the continued uncertainty surrounding the conflict, the volatility of jet fuel prices, and with jet fuel currently around US$150 per barrel, the airline is not in a position to provide earnings guidance for the 2027 financial year at this time. Excluding fuel, the major factors that impacted the 2026 financial result are expected to continue to have some impact in the 2027 financial year, albeit to a lesser extent: • Disruption from engine availability is reducing substantially as aircraft return to service. However, there remains an estimated financial impact of between $70 million to $90 million in 2027 from a combination of extraordinary costs related to the engine issues and the recovery of our engines in the middle of a fuel crisis. • We expect maintenance costs to be $50 million to $100 million lower in 2027 than in 2026. • Aviation system costs continue to rise well above inflation, with airport charges expected to increase by upwards of 10 percent at some ports during the 2027 financial year. The airline expects the 2027 financial year to be both a transition and recovery year, with operational performance continuing to improve even as elevated fuel prices weigh on profitability. We also expect the range of initiatives we have implemented in response to the currently elevated fuel cost will contribute to offsetting a larger portion of the elevated cost of fuel compared to the prior year. We are 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. We remain focused on executing our strategic priorities, improving financial performance and positioning the airline for long-term sustainable returns. 2027 Outlook
Page 24
24A 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 25
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 25 Supplementary Information
Page 26
2626 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 26 30 Jun 2026 30 Jun 2025 Capital management targets1 Gross debt2 (3,188) (2,838) Cash, restricted deposits and net open derivatives2 1,264 1,758 Net debt2 (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)3 (7.8)% 7.3% ROIC above pre-tax WACC Total liquidity2 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)4 1. Refer to Slide 37 for more information on the Capital Management Framework. 2. In $ millions. 3. Operating earnings before finance costs and taxation divided by the average capital employed. 4. NPAT is calculated on a rolling twelve-month basis. Key capital management metrics 26
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 R E S U L T S 27 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 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 R E S U L T S 28 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 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 R E S U L T S 29 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 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 R E S U L T S 30 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 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 R E S U L T S 31 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 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 R E S U L T S 32 • Cargo revenue of $484 million, down 0.6% on the prior year. Key drivers include: − Increased capacity on Asia and Tasman sectors driven by operating 777s on these routes, and additional Pacific long-haul schedule, partly offset by a reduction in Japan capacity. − Lower load factors, primarily on the Tasman, with capacity growth outpacing demand. − International cargo yield improved, supported by fuel cost pass through introduced in March 2026 in response to higher fuel prices. Cargo performance Cargo revenue ($ millions) 486.6 4.1 8.4 0.7 484.1 (15.7) 2025 CAPACITY LOAD FACTOR YIELD FOREIGN EXCHANGE 2026
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 R E S U L T S 33 1. 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. 2. Refer to Slide 34 for breakdown of where compensation has been reflected in the 2026 Group financial statements. Global engine issues and delays impacted financial performance by ~$190 million Impact on earnings before tax excluding compensation1 Including lost revenue, WAMOS lease cost, poor aircraft operating economics, additional ownership costs, loss of scale and operating inefficiencies Compensation received2 Net impact on earnings before tax1 ~$190 million $105 million ~$295 million
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 R E S U L T S 34 Compensation summary 1. $22 million of the $129 million prior year compensation amount relates to other periods. Air New Zealand has entered into agreements with several manufacturers to compensate for the impact of engine shortages on the business. Compensation recognised in the Statement of Financial Performance arising from these agreements has been reflected in the following line items: June 2026 $M June 20251 $M Movement $M Other revenue and income 65 104 (39) Fuel - 2 (2) Maintenance 4 3 1 Other expenses 8 3 5 Depreciation and amortisation 26 16 10 Finance costs 2 1 1 Total compensation received from manufacturers 105 129 (24)
Page 35
3535 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 35 • At the time of Interim Results (Feb 2026) when full year guidance provided, jet fuel price was US$85/barrel. Compared to the Interim Results guidance statement, fuel costs were $205 million higher than expected. • Updated guidance provided in May 2026 was based on an assumed average jet fuel price of ~US$145/barrel for H2 2026. Compared to the May 2026 updated guidance, fuel costs were $16 million lower than expected. • Mitigations include fare price increases and selective capacity reductions, alongside increased bookings through Air New Zealand for travel to Europe via Asia and the US to avoid the Middle East. The Middle East conflict had a material impact on earnings in the second half Additional commentary $million H2 2026 Fuel Cost Forecast (Feb 2026) H2 2026 Actual Fuel Cost Movement Fuel cost 741 1,069 +328 Hedging (gains)/losses 18 (105) (123) H2 2026 fuel cost 759 964 +205 Mitigations (70) H2 2026 Net Impact +135
Page 36
3636 A I R N E W Z E A L A N D 2 0 2 6 A N N U A L R E S U L T S 36 1. Excludes spare engine assets and operating leases (leases without a purchase option). Aircraft valuations based on Aircraft Value Analysis Company Limited (AVAC) as at 30 June 2026. Aircraft valuations are subject to market conditions, aircraft condition, FX rates, technology advancement and other factors. Aircraft values are in USD and converted to NZD at June 2026 balance sheet rate of 0.5650. Foreign currency denominated debt outstanding as at 30 June 2026 and converted to NZD at balance sheet rates (JPY: 91.50, EUR: 0.4950). 2. Debt maturity profile excludes operating leases. Finance leases are lease liabilities with purchase options. Operating leases are lease liabilities without purchase options. Debt structure and maturity profile Debt maturity profile at 30 Jun 20262 ($ millions) 46 unencumbered aircraft at 30 Jun 2026 252 132 96 75 184 160 47 104 279 366 354 2027 2028 2029 2030 2031 2032 26 2033 2034 Secured Debt and Finance Leases NZ Retail Bond Australian Medium-Term Notes Secured Revolving Credit Facility 777-300ER 3x 787-9 2x A320/321neo 6x A320ceo 5x ATR72-600 7x Q300 23x • Market value of unencumbered aircraft ~$1.9 billion1 • In addition, equity headroom of ~$2.1 billion1 in aircraft pledged as security within debt facilities • 15 aircraft were encumbered during H2 2026 in connection with a drawdown under the new secured revolving credit facility
Page 37
3737 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 37 1. The payout ratio for each of the interim and final dividends is calculated based on the rolling 12-month NPAT, which is divided by two, to reflect the six-monthly period. Invest in core operations Maintain financial resilience and flexibility Distributions Growth capex Underpinned by our commitment to maintain investment grade credit rating metrics • Target liquidity range of $1.2 billion to $1.5 billion • Net Debt to EBITDA ratio of 1.5x to 2.5x • Fleet and infrastructure investments above WACC through the cycle • Investment to support the airline’s decarbonisation ambitions • Ordinary dividend pay-out ratio of 40% to 70% of underlying net profit after tax (NPAT) • Return excess capital via special dividends or share buybacks • Disciplined investment in value accretive capex • Target ROIC above pre-tax WACC Capital Management Framework
Page 38
3838 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 38 Aircraft Engines Number in Fleet Average Age1 (Years) Expected Delivery Dates – Financial Year 2027 2028 2029 2030 2031 International 777-300ER GE90 Core fleet: 7 Short-term leased: 3 14.2 14.5 - - - - - 787-93 Trent 1000 (GE engines for deliveries from 2027) 14 9.8 2 2 2 1 - A321neo (short-haul) PW1100 9 5.9 - - 2 - - A320neo (short-haul) PW1100 6 6.3 - - - - - Domestic A321neo (domestic) PW1100 5 3.1 2 - - - - A320ceo (domestic) V2500 17 12.4 - - - - - ATR72-600 PW127 31 8.8 - - - - - Q300 PW123 23 19.4 - - - - - TOTAL 1122 10.32 4 2 4 1 - Fleet profile – as at 30 June 2026 1. Total fleet average age is seat weighted. This includes aircraft currently grounded due to engine maintenance delays. 2. This excludes short-term leased aircraft. 3. New Boeing 787 deliveries expected from 2027 to 2033 will be a mix of 787-9 and 787-10 aircraft.
Page 39
3939 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 39 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 40
4040 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 40 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 41
41