Air New Zealand Limited · NZX:AIR
Air New Zealand — Q2 2026 Earnings Presentation
39 slides from Air New Zealand's earnings presentation, Feb 27, 2026
Slide 1: Interim Results 2026
Air New Zealand Interim Results 2026 Investor presentation Interim 2026 Results 26 February 2026 NZX:AIR / ASX: AIZ / US OTC: ANZLY All information is private and confidential AIR NEW ZEALAND 2024 INTERIM RESULTS 1
Slide 2: Forward-looking statements and disclaimers
Air New Zealand Interim Results 2026 Forward-looking statements and disclaimers This presentation is given on behalf of Air New Zealand Limited (NZX: AIR materially from those expressed or implied in its forward-looking and AIR030; ASX: AIZ). The information in this presentation: statements and undu
Slide 3: Agenda
Air New Zealand Interim Results 2026 Agenda 1H 2026 Business Update 1H 2026 Financial Performance Outlook AIR NEW ZEALAND 2026 INTERIM RESULTS 3 3
Slide 4: Business Update
Air New Zealand Interim Results 2026 Nikhil Ravishankar – Chief Executive Officer Business Update 4 All information is private and confidential
Slide 5: Building on a strong foundation – of New Zealand, for New Zealand
Building on a strong foundation – Air New Zealand Interim Results 2026 of New Zealand, for New Zealand People and safety first Diverse network Engaged and loyal Modern fleet customers Innovative culture Strong balance sheet AIR NEW ZEALAND 2026 INTERIM RESULTS 5 5
Slide 6: 1H result reflects fleet constraints, high aviation system inflation and slower domestic recovery
1H result reflects fleet constraints, high aviation system Air New Zealand Interim Results 2026 inflation and slower domestic recovery PASSENGERS FLOWN LOSS BEFORE TAXATION1 ADVERSE IMPACT TO 1H 20262 ASKs (CAPACITY) 8.1m ($59m) ~$90m +0.3% Slightly up on 1H 2025 Includes $11m unused travel Due to e
Slide 7: 1H revenue growth driven by international inbound bookings, domestic bookings soft
1H revenue growth driven by international inbound Air New Zealand Interim Results 2026 bookings, domestic bookings soft ASIA & JAPAN ASKs (4.6%) NORTH AMERICA ASKs (2.6%) Load factor change (1.3) pt • Robust outbound demand from NZ Load factor change +2.5 pt • Inbound demand strength amid constraine
Slide 8: 2026 network remains sub-scale; carrying costs from engine issues continue to drag on near-term earnings
Air New Zealand Interim Results 2026 2026 network remains sub-scale; carrying costs from engine issues continue to drag on near-term earnings Domestic network size Aircraft availability assumptions are fluid but (Billion ASKs) currently expect slight 2H improvement vs 1H Domestic 7.1 capacity 6.6 ~6
Slide 9: Cost inflation is outpacing NZ CPI driven by structurally higher domestic aviation system costs
Air New Zealand Interim Results 2026 Cost inflation is outpacing NZ CPI driven by structurally higher domestic aviation system costs Cumulative inflation ex-fuel is above NZ CPI Air New Zealand domestic fares have for the same period also risen, but not to the same extent Key drivers within this: La
Slide 10: Meaningful progress has been delivered in the face of these challenges
Air New Zealand Interim Results 2026 Meaningful progress has been delivered in the face of these challenges Operational Customer Financial Regional OTP1 improved to Major refresh of loyalty Incremental ~$45 million in 83.9% from 73.3% following a programme, including launch transformation benefits f
Slide 11: Financial Update
Air New Zealand Interim Results 2026 Richard Thomson – Chief Financial Officer Financial Update 11 All information is private and confidential AIR NEW ZEALAND 2026 INTERIM RESULTS 11
Slide 12: 1H 2026 overview
Air New Zealand Interim Results 2026 1H 2026 overview • Operating revenue of $3.4 billion, up 1.2% (Loss)/Earnings before taxation ($ millions) • Passenger revenue of $3.0 billion, up 3.6% • Loss before taxation of $59 million Covid-19 • Net loss after taxation of $40 million impacted 299 period 185
Slide 13: Impact of engine delays on financial performance has been significant, despite compensation
Air New Zealand Interim Results 2026 Impact of engine delays on financial performance has been significant, despite compensation (Loss)/Earnings before taxation adjusted for estimated impact of engine issues ($ millions) ~135 (55) ~20 to ~$90 million1 ~40 residual adverse impact to to earnings, desp
Slide 14: Profitability waterfall
Air New Zealand Interim Results 2026 Profitability waterfall Additional commentary • Price inflation across the non-fuel cost base, a headwind of around $75 million vs 1H 2025 • Waterfall chart includes ~$45 million benefit of transformation initiatives, cumulative benefits of ~$145 million since 20
Slide 15: Fleet constraints continue to adversely impact CASK performance
Air New Zealand Interim Results 2026 Fleet constraints continue to adversely impact CASK performance • Reported CASK increased 7.7% due to significant increases in supplier costs and inefficiencies associated with ongoing engine constraints, and unfavourable foreign exchange • Excluding the impact o
Slide 16: Fuel hedging and FX update
Air New Zealand Interim Results 2026 Fuel hedging and FX update 2026 Fuel cost outlook ~1,500 Fuel hedging 1,600 1,484 1,525 - • Elevated crack spread levels observed in Q2 2026 1,400 NZD cost of fuel (millions) 1,200 • Majority of hedges in Brent Crude with some opportunistic Singapore Jet swaps do
Slide 17: Fleet investment update
Air New Zealand Interim Results 2026 Fleet investment update Actual and forecast aircraft capital expenditure1 • Forecast investment of ~$3.4 billion in 1,100 aircraft and associated assets from 2H 1,000 2026 to 20312 900 • Chart includes the cost of interior retrofit of 800 14 existing 787 aircraft
Slide 18: Robust liquidity and prudent Capital Management Framework provide resiliency
Air New Zealand Interim Results 2026 Robust liquidity and prudent Capital Management Framework provide resiliency Liquidity has been Leverage is marginally Continued growth in actively managed to above the target range due unencumbered fleet1 to within the $1.2 billion to to reduced EBITDA at a time
Slide 19: Outlook
Air New Zealand Interim Results 2026 Nikhil Ravishankar – Chief Executive Officer Outlook 19 All information is private and confidential AIR NEW ZEALAND 2026 INTERIM RESULTS 19
Slide 20: 2H 2026 capacity reflects expected return of some grounded aircraft
Air New Zealand Interim Results 2026 2H 2026 capacity reflects expected return of some grounded aircraft 2026 1H 2026 2H 2026 2025 ASKs Estimated Sector Actuals Estimate Commentary (millions) Capacity (vs 1H 2025) (vs 2H 2025) (vs 2025) • Assumes one A321neo returns to Domestic 6,409 Flat 2% to 4% 1
Slide 21: 2026 financial considerations
Air New Zealand Interim Results 2026 2026 financial considerations Assumptions • Revenue − 2H capacity increase of 3% to 4%, subject to improvement in engine reliability on NEO and 787 fleet and delivery of GE-powered 787 in April 2026 − Domestic trading conditions have seen very early improvement i
Slide 22: 2026 Outlook
Air New Zealand Interim Results 2026 2026 Outlook • Based on current trading conditions and assuming an average jet fuel price of US$85 per barrel for the second half, Air New Zealand expects earnings for the second half to be broadly in line with, or modestly below, the first half. • The outlook re
Slide 23: Thank you
2 AIR NEW ZEALAND ‘o_ Thank you A STAR ALLIANCE MEMBER v-
Slide 24: Supplementary information
Air New Zealand Interim Results 2026 Supplementary information 24 All information is private and confidential
Slide 25: Key capital management metrics
Air New Zealand Interim Results 2026 Key capital management metrics 31 Dec 2025 30 June 2025 Capital management targets Gross debt1 (3,267) (2,838) Cash, restricted deposits and net open 1,312 1,758 derivatives1 Net debt1 (1,955) (1,080) Gross debt/EBITDA* 4.3x 3.0x Net Debt to EBITDA ratio of Net d
Slide 26: Financial overview
Air New Zealand Interim Results 2026 Financial overview Dec 2025 Dec 2024 Movement Movement $M $M $M % Operating revenue 3,444 3,403 41 1% (Loss) / earnings before taxation1 (59) 144 (203) (141%) Net (loss) / profit after taxation1,2 (40) 98 (138) (141%) Operating cash flow 213 424 (211) (50%) Cash
Slide 27: Group performance metrics
Air New Zealand Interim Results 2026 Group performance metrics Dec 2025 Dec 2024 Movement1 $M $M % Passengers carried (‘000s) 8,120 8,086 0.4% Available seat kilometres (ASKs, millions) 20,524 20,453 0.3% Revenue passenger kilometres (RPKs, millions) 17,163 17,032 0.8% Load factor 83.6% 83.3% 0.3 pt
Slide 28: Domestic
Air New Zealand Interim Results 2026 Domestic Dec 2025 Dec 2024 Movement1 $M $M % Passengers carried (‘000s) 5,093 5,174 (2%) Available seat kilometres (ASKs, millions) 3,225 3,235 (0.3%) Revenue passenger kilometres (RPKs, millions) 2,689 2,695 (0.2%) Load factor 83.4% 83.3% 0.1 pts Passenger reven
Slide 29: Tasman & Pacific Islands
Air New Zealand Interim Results 2026 Tasman & Pacific Islands Dec 2025 Dec 2024 Movement1 $M $M % Passengers carried (‘000s) 2,080 1,941 7% Available seat kilometres (ASKs, millions) 6,355 5,864 8% Revenue passenger kilometres (RPKs, millions) 5,479 5,070 8% Load factor 86.2% 86.5% (0.3) pts Passeng
Slide 30: International long-haul
Air New Zealand Interim Results 2026 International long-haul Dec 2025 Dec 2024 Movement1 $M $M % Passengers carried (‘000s) 947 971 (3%) Available seat kilometres (ASKs, millions) 10,944 11,354 (4%) Revenue passenger kilometres (RPKs, millions) 8,995 9,267 (3%) Load factor 82.2% 81.6% 0.6 pts Passen
Slide 31: Compensation summary
Air New Zealand Interim Results 2026 Compensation summary Dec 2025 Dec 2024 Movement Movement $M $M1 $M % Other revenue and income 37 83 (46) (55%) Fuel - 2 (2) (100%) Maintenance 1 1 - - Other expenses 4 - 4 NA Depreciation and amortisation 12 8 4 50% Finance costs 1 - 1 NA Total compensation recei
Slide 32: Cargo performance
Air New Zealand Interim Results 2026 Cargo performance Cargo revenue • Cargo revenue of $239 million, down 7% on ($ millions) prior year. Key drivers include: 257 − Lower volumes driven by reduced load factors on the Tasman, alongside weaker northbound volumes to North America (19) − Lower yields du
Slide 33: Capital management progress
Air New Zealand Interim Results 2026 Capital management progress PROGRESS MADE IN 1H 2026 Maintain financial resilience and flexibility • ~$270 million debt and leases paid down • Target liquidity range of $1.2 billion to $1.5 billion • Issued AUD$300m 7 year AMTN • Net Debt to EBITDA ratio of 1.5x
Slide 34: Fuel cost movement
Air New Zealand Interim Results 2026 Fuel cost movement $6 million decrease (1%) ( in fuel price1 774 24 10 (6) 746 Decrease in jet fuel price US$91 to US$88 per barrel Dec 2024 Volume Underlying FX Dec 2025 Fuel Cost Price Movements Fuel Cost 1 Net hedging impact in the period was nominal. 2 Sustai
Slide 35: Debt structure and maturity profile
Air New Zealand Interim Results 2026 Debt structure and maturity profile 57 unencumbered aircraft at 31 Dec 2025 Debt maturity profile at 31 Dec 20252 ($ millions) 777-300ER 5x 787-9 2x Secured Debt and Finance Leases NZ Retail Bond A320/321neo 7x Australian Medium Term Notes A320ceo 9x ATR72-600 11
Slide 36: Fleet profile
Air New Zealand Interim Results 2026 Fleet profile Expected Delivery Dates Number in Average Age1 Aircraft Engines Fleet (Years) 2H 2026 2027 2028 2029 2030 2031 Core fleet: 7 13.7 777-300ER GE90 Short term leased: 3 14.0 Trent 1000 International (GE engines 787-93 for 2H 2026 14 9.3 2 2 2 1 1 2 del
Slide 37: Glossary of key terms
Air New Zealand Interim Results 2026 Glossary of key terms 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 Operating earnings b
Slide 38: Find information on Air New Zealand
Air New Zealand Interim Results 2026 Find information on Air New Zealand Resources 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: ht
Slide 39: AIR NEW ZEALAND 2026 INTERIM RESULTS
AIR NEW ZEALAND 2026 INTERIM RESULTS 39