Air New Zealand Limited · NZX:AIR
Air New Zealand — FY2026 Earnings Presentation
41 slides from Air New Zealand's earnings presentation, Aug 29, 2026
Slide 1: Annual Results 2026
I ‘ 4 q > | . e > Ihe NZX: AIR / ASX: AIZ / US OTC: ANZLY \ ; Investor presentation 28 August 2026 Annual Results 0096
Slide 2: Forward-Looking Statements and Disclaimer
F O R WA R D - L O O K I N G S TAT E M E N T S A N D D I S C L A I M E R This presentation is given on behalf of Air New Zealand Limited (NZX: AIR and AIR030; ASX: Air New Zealand, its directors, employees and/or shareholders shall have no liability whatsoever AIZ). The information in this presentat
Slide 3: Contents
Contents 2026 Highlights 2026 Financial Performance Outlook Supplementary Information AIR NEW ZEALAND 2026 ANNUAL RESULTS 3 3
Slide 4: 2026 Highlights
2026 Highlights Nikhil Ravishankar – Chief Executive Officer AIR NEW ZEALAND 2026 ANNUAL RESULTS 4
Slide 5: 2026 was a year of rebuilding our fleet, demonstrating operational resilience and setting Our Future strategy
2026 was a year of rebuilding our fleet, demonstrating operational resilience and setting Our Future strategy Financial performance was significantly and adversely impacted by high fuel prices resulting from the Middle East conflict and by engine availability issues Through the extraordinary efforts
Slide 6: 2026 year in review
2026 year in review External forces impacted earnings but we delivered improvements in operational performance $336m loss before ASKs up 1.3% On-time Performance3 taxation Compared to earnings Return of grounded aircraft offset by 84.0% H2 2026, up 6.5pts from 2025 before taxation of $164m1 in 2025
Slide 7: Return of grounded aircraft means the airline ends 2026 in a materially better place
Return of grounded aircraft means the airline ends 2026 in a materially better place than when it started The airline is focused on mitigating residual risk and unwinding engine availability related costs Peak AOG1 Now 787-9 787 A320/1neo A20/1neo 787 A320/1neo 5 6 0-1 1-2 AOG of 14 aircraft AOG of
Slide 8: Te Pae Hou | Our Future: delivering against three strategic priorities
Te Pae Hou | Our Future: delivering against three strategic priorities Customer first Targeted growth Resilient and future fit • Safe, reliable and punctual • Targeted, profitable network growth • Cost transformation • Unique Kiwi service and innovative products • Loyalty transformation and partner
Slide 9: Key customer metrics improved in 2026
Key customer metrics improved in 2026 Investment in the customer proposition, operating reliability and in our people are delivering positive customer results H2 2026 vs • On-time performance finished the year with 2025 H2 2026 2025 continued momentum, at 84.0% in the second half of the year, up fro
Slide 10: Higher inbound volumes across international markets
Higher inbound volumes across international markets. New Zealand outbound and domestic demand remains soft ASIA NORTH AMERICA • Higher inbound passenger fares from Passengers (0.6%) • Flat inbound passenger demand from Passengers +0.4% across Asia North America ASKs (4.3%) ASKs +1.1% • Premium cabin
Slide 11: Transformation initiatives delivered an incremental $94 million of benefits in 2026
Transformation initiatives delivered an incremental $94 million of benefits in 2026 Next Generation revenue management Direct Ancillary buy-ups Contact Centre efficiencies, including the across the full network roll out of Live Chat Koru programme transformation Automated disrupt rebooking system Ca
Slide 12: Financial Performance 2026
2026 Financial Performance Richard Thomson – Chief Financial Officer (outgoing) AIR NEW ZEALAND 2026 ANNUAL RESULTS 12 12
Slide 13: Financial summary
Financial summary • Operating revenue $7.0 billion, up 3.9% on prior year Earnings/(Loss) Before Taxation ($ millions) • Passenger revenue $6.1 billion, up 4.8% on prior year • Cargo revenue $484 million, down 0.6% on prior year Engine availability issues from mid Covid-19 calendar year 2023 impacte
Slide 14: Profitability waterfall
Profitability waterfall Additional commentary • 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 mo
Slide 15: ~$465m adverse impact to 2026 earnings before taxation
~$465m adverse impact to 2026 earnings before taxation due to global engine issues, Middle East conflict and timing of lifecycle maintenance costs ~$190m Continuing engine issues resulted in additional lease cost, Engine issues Additional costs due to engine issues and delays reduced capacity and lo
Slide 16: Aviation system costs continue to increase
While general inflation is moderating, aviation system costs - most importantly airport charges - continue to increase Aviation system costs continue to rise Air New Zealand’s exposure to these faster than general inflation charges was $142 million higher in 20261 6.8% System-wide landing charge inf
Slide 17: Reported CASK (cents)
Unit cost impacted by fuel price, fleet constraints and continued price pressure across the aviation ecosystem • Reported CASK increased 10.4%, largely due to increased jet fuel price and inefficiencies associated with fleet constraints. 0.28 15.95 • Underlying CASK increased 4.8%, Reported CASK (ce
Slide 18: Net debt movement
Net debt increased in H1 2026 but was relatively flat in H2 2026, despite the impact of the elevated fuel prices on earnings H1 2026 H2 2026 ($875m) +$31m Aircraft payments ($462m) EBITDA $164m Capitalised engine maintenance ($114m) Transportation sales in advance $166m Non-aircraft capex ($117m) Ot
Slide 19: Outlook
Outlook Nikhil Ravishankar – Chief Executive Officer Kris Cudmore – Chief Financial Officer AIR NEW ZEALAND 2026 ANNUAL RESULTS 19 19
Slide 20: Fleet investment update
Fleet investment update Actual and forecast aircraft capital expenditure1 • Forecast investment of ~$2.7 billion in aircraft and associated assets through to 1,400 20312 1,300 • We are in active negotiations with Boeing 1,200 to rephase the delivery profile of 787 1,100 aircraft, smoothing the capit
Slide 21: Capacity set to recover in 2027
Capacity set to recover in 2027 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
Slide 22: Fuel and foreign exchange hedging
~60% hedged against Brent Crude oil price and USD for 2027 2027 Fuel cost sensitivity1, 2, 3 Fuel hedging 2,600 • Mostly hedged in Brent Crude with ~20% overlay of Crack 2,400 NZD total fuel cost (millions) spread swaps to mitigate some basis risk in H1 2027 2,200 • Brent is predominantly hedged wit
Slide 23: 2027 Outlook
2027 Outlook 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 pr
Slide 24: AIR NEW ZEALAND 2026 ANNUAL RESULTS
AIR NEW ZEALAND 2026 ANNUAL RESULTS 24
Slide 25: Supplementary Information
Supplementary Information AIR NEW ZEALAND 2026 ANNUAL RESULTS 25
Slide 26: Key capital management metrics
Key capital management metrics 30 Jun 2026 30 Jun 2025 Capital management targets1 Gross debt2 (3,188) (2,838) Cash, restricted deposits and net open 1,264 1,758 derivatives2 Net debt2 (1,924) (1,080) Gross debt/EBITDA 6.2x 3.0x Net Debt to EBITDA ratio Net debt/EBITDA 3.8x 1.2x of 1.5x to 2.5x Gear
Slide 27: Financial overview
Financial overview Jun 2026 Jun 2025 Movement Movement $M $M $ % 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%) Ordin
Slide 28: Group performance metrics
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
Slide 29: Domestic
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
Slide 30: Tasman & Pacific Islands
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 (
Slide 31: International long-haul
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 reporte
Slide 32: Cargo performance
Cargo performance • Cargo revenue of $484 million, down 0.6% on the prior year. Cargo revenue Key drivers include: ($ millions) − Increased capacity on Asia and Tasman sectors driven 4.1 by operating 777s on these routes, and additional Pacific 486.6 long-haul schedule, partly offset by a reduction
Slide 33: Global engine issues and delays impacted financial performance by ~$190 million
Global engine issues and delays impacted financial performance by ~$190 million ~$295 million Impact on earnings Compensation received2 before tax excluding ~$190 million compensation1 Including lost revenue, $105 million WAMOS lease cost, poor aircraft operating economics, additional Net impact on
Slide 34: Compensation summary
Compensation summary 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
Slide 35: The Middle East conflict had a material impact on earnings in the second half
The Middle East conflict had a material impact on earnings in the second half Additional commentary • At the time of Interim Results H2 2026 H2 2026 (Feb 2026) when full year guidance $million Fuel Cost Forecast Actual Fuel Cost Movement provided, jet fuel price was (Feb 2026) US$85/barrel. Compared
Slide 36: Debt structure and maturity profile
Debt structure and maturity profile 46 unencumbered aircraft at 30 Jun 2026 Debt maturity profile at 30 Jun 20262 ($ millions) • Market value of unencumbered aircraft ~$1.9 billion1 • In addition, equity headroom of ~$2.1 billion1 in aircraft pledged Secured Debt and Finance Leases as security withi
Slide 37: Capital Management Framework
Capital Management Framework Maintain financial resilience and flexibility • Target liquidity range of $1.2 billion to $1.5 billion • Net Debt to EBITDA ratio of 1.5x to 2.5x Underpinned by our commitment to maintain investment grade credit rating metrics Invest in core operations • Fleet and infras
Slide 38: Fleet profile – as at June 2026
Fleet profile – as at 30 June 2026 Expected Delivery Dates – Financial Year Number in Average Age1 Aircraft Engines Fleet (Years) 2027 2028 2029 2030 2031 Core fleet: 7 14.2 777-300ER GE90 Short-term - - - - - leased: 3 14.5 International Trent 1000 (GE engines 787-93 14 9.8 2 2 2 1 - for deliveries
Slide 39: Glossary of key terms
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 before depreciation and amortisation,
Slide 40: Find information on Air New Zealand
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: https://www.airnewzealand.co.nz/sustain
Slide 41: AIR NEW ZEALAND
2 AIR NEW ZEALAND \o_ A STAR ALLIANCE MEMBER