Air NZ 2026 interim result and full year guidance

airnewzealand.co.nz
MARKET RELEASE – Thursday 26 February 2026
Stock exchange listings: New Zealand (NZX: AIR) / Australia (ASX: AIZ) / ADR (OTC: ANZLY)
Air New Zealand announces 2026 interim result
and provides full year guidance

Summary
• 1H 2026 Loss before taxation of $59 million
• 1H 2026 Net loss after taxation of $40 million
• 1H 2026 EBITDA of $347 million
• Result largely driven by global engine maintenance delays, slower than expected recovery
in domestic demand, increasing aviation system costs and a weaker NZD
• Strategic review underway to reset the business amid continuing cost escalation across the
aviation system and supply chain
• No interim dividend declared, in line with the airline’s Capital Management Framework
• 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 second-half earnings to be broadly in
line with, or modestly below, the first half
• The airline will take delivery of the first two of ten new GE-powered 787s at the end of the
financial year supporting widebody capacity growth of approximately 20% to 25% over the
next two years
• Continued advocacy for fit -for-purpose aviation sector settings that underpin connectivity
and affordability

Air New Zealand today announced a loss before taxation of $59 million for the first half of the 2026
financial year, compared with earnings before taxation of $144 million in the prior corresponding
period. The net loss after taxation was $40 million.
This result reflects the combined impact of ongoing fleet constraints, a slower recovery in domestic
demand and rising costs, including persistently high aviation system inflation. Cost pressures have
been further exacerbated by a weaker New Zealand dollar. The result is slightly outside the
guidance range of a loss of $30 to $55 million provided to the market in October 2025, primarily
reflecting a $13 million headwind from higher-than-assumed fuel prices in the second quarter.
While the airline received $55 million in compensation from engine manufacturers for the first half,
it estimates an additional $90 million
1
of earnings could have been included within the result had
the fleet operated as intended. The airline is in ongoing negotiations with engine manufacturers to
improve certainty around engine return schedules and appropriate compensation.
Chair Dame Therese Walsh said "given the ongoing volatility, including continued global engine
maintenance impacts and a slower recovery in domestic demand, the Board and I asked Nikhil to
undertake a full strategy review when he took up the Chief Executive Officer role in October.
“As New Zealand's national airline we play an important role in supporting New Zealand, particularly
as it relates to export and tourism. The strategy reset will allow us to be firmly focused on
strengthening and growing our airline to deliver long term growth and prosperity for New Zealand."

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.

Page 2
Chief Executive Officer Nikhil Ravishankar went on to say that “with the support of the Board we
are undertaking a comprehensive review of all aspects of the business, with the objective of
returning the airline to sustained profitability through enhanced operational performance, growth
and further cost transformation initiatives.
“At the same time, a number of performance and product improvements are already underway,
including improvements in domestic punctuality and reliability, and a decision to upgrade the
interiors of our existing 777 fleet, so our widebody product is consistent, modern and mission ready.
“While we are disappointed that the engine availability issues have taken longer than anticipated to
resolve, we are pleased with recent progress and now expect a total of four grounded Airbus neo
and Boeing 787 aircraft to return to service throughout the 2026 calendar year. We will also take
delivery of two of ten new 787 aircraft later in the financial year, providing widebody capacity growth
of around 20 percent to 25 percent over the next two years.
“I want to thank our customers for their loyalty and Air New Zealanders for their ongoing
professionalism and care for customers and each other as the tough operating environment
persists”.
1H 2026 Financial performance
Passenger revenue improved four percent to $3 billion, supported by additional capacity across the
Tasman and Pacific Islands, and a higher mix of premium seats on long-haul international routes.
Network capacity overall was broadly flat, with up to eight aircraft grounded at times due to global
engine maintenance delays.
The airline experienced a slower than expected recovery in Domestic demand however
international performance was supported by continued strong offshore bookings, particularly in the
premium cabins. Demand for outbound long-haul travel remained subdued.

Fuel costs were $774 million, an increase of 4 percent. Singapore jet fuel averaged around US$88
per barrel compared to US$91 per barrel in the prior period. The lower fuel price was more than
offset by a weaker New Zealand dollar, an increase in the cost of the airline’s CORSIA obligations
and the operation of less fuel-efficient aircraft due to global engine constraints.
Non-fuel operating cost inflation of approximately $75 million was driven primarily by higher
mandated domestic passenger levies, engineering and maintenance costs, and airport landing
charges. The airline’s concern is not only about the current level of these costs, but the future
trajectory and potential for further increases over time, which would place additional pressure on
the business, and the sustainability of regional connectivity.
The airline continues to drive its Kia Mau transformation programme and delivered around $45
million in incremental benefits in the half, with around $145 million in cumulative benefits since the
programme’s inception last year. This largely reflects the realisation and ramp-up of initiatives
previously outlined at the 2025 annual results. While meaningful, these benefits have not been
sufficient to offset the full extent of increases across the cost base, which will be addressed as part
of the ongoing strategic review.
Dividend
Based on the result announced today, the Board has not declared an interim dividend, consistent
with the airline’s Capital Management Framework.
2H26 Outlook
While capacity is expected to increase modestly in the second half, as aircraft return to service and
new aircraft enter the fleet, the airline cautions that improvements in aircraft availability are unlikely
to translate immediately into earnings uplift. This is because widebody capacity cannot be

Page 3
operationalised into the schedule and sold at short notice. The primary constraint is uncertainty in
the timing of aircraft and engine returns, which limits the ability to plan and sell additional flying with
confidence. Disruption-related costs and inefficiencies also take time to unwind, including the return
of leased aircraft and engines.
Aviation system and supply chain cost pressures are expected to continue, reinforcing the
importance of fit-for-purpose aviation sector settings that support sustainable connectivity and
affordability for customers over time.
Guidance
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 second-half earnings to be broadly in line with, or
modestly below, the first half. The outlook remains subject to material uncertainty, including engine
return schedules, the timing and quantum of compensation, and continued volatility across key
input costs and demand conditions.
Compensation arrangements in respect of certain engines are yet to be agreed for the second half.
Air New Zealand is in active negotiations with the relevant manufacturers. While the airline is
working hard towards a fair outcome, the timing and quantum of further compensation remains
uncertain, and this could materially impact full-year earnings.
Ends
This announcement has been authorised for release by Jennifer Page, General Counsel &
Company Secretary (jennifer.page@airnz.co.nz).
For investor relations queries, please contact: For media enquiries, please contact:
Kim Cootes,
Head of Investor Relations
Email: kim.cootes@airnz.co.nz
Phone: +64 27 297 024
Air New Zealand Communications
Email: media@airnz.co.nz
Phone: +64 21 747 320

---

AIR NEW ZEALAND 2024 INTERIM RESULTS
1
All information is private and confidential
Air New Zealand Interim Results 2026
Investor presentation
26 February 2026
NZX:AIR / ASX: AIZ / US OTC: ANZLY
Interim
Results
2026

AIR NEW ZEALAND 2026 INTERIM RESULTS
2
Air New Zealand Interim Results 2026
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
condensed Group interim financial statements (‘interim financial
statements’) for the six months ended 31 December 2025, 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 six months ended 31 December 2025 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 upon 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
The Company, 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 interim financial statements where possible. The interim financial
statements are subject to review by the Group's external auditors. 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 37 for a glossary of the key terms used in this presentation.
Forward-looking statements and disclaimers

AIR NEW ZEALAND 2026 INTERIM RESULTS
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Air New Zealand Interim Results 2026
3
1H 2026 Business Update
1H 2026 Financial Performance
Outlook
Agenda

All information is private and confidential
Air New Zealand Interim Results 2026
4
Air New Zealand Interim Results 2026
Business
Update
Nikhil Ravishankar – Chief Executive Officer

AIR NEW ZEALAND 2026 INTERIM RESULTS
5
Air New Zealand Interim Results 2026
5
Building on a strong foundation –
of New Zealand, for New Zealand
People and safety first
Engaged and loyal
customers
Innovative culture
Diverse network
Modern fleet
Strong balance sheet

AIR NEW ZEALAND 2026 INTERIM RESULTS
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Air New Zealand Interim Results 2026
6
PASSENGERS FLOWN
8.1m
Slightly up on 1H 2025
ADVERSE IMPACT TO 1H 2026
2
~$90m
Due to engine issues,
net of compensation of $55m
LOSS BEFORE TAXATION
1
($59m)
Includes $11m unused travel
credit breakage
ASKs (CAPACITY)
+0.3%
~90% of pre-Covid capacity,
growth planned for 2H 2026
ON-TIME PERFORMANCE
77.5%
Ranked 2nd in APAC in the 2025
Cirium On-Time Performance
Review
RETROFITTED BOEING 787
AIRCRAFT BACK IN SERVICE
7of 14
With remaining aircraft returning
across the remainder of the
calendar year
FY26 YTD CUSTOMER
SATISFACTION (CSAT)
84
With notable increases in
domestic and regional
routes
LOYALTY PROGRAMME
REFRESH
Koru Black
New tier introduced, with
elevated recognition, rewards
and benefits
1H result reflects fleet constraints, high aviation system
inflation and slower domestic recovery
1
Compared to guidance provided to the market in October 2025 of a loss of $30 million to $55 million.
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.

AIR NEW ZEALAND 2026 INTERIM RESULTS
7
Air New Zealand Interim Results 2026
7
TASMAN
PACIFIC ISLANDS
ASIA & JAPAN
NORTH AMERICA
NEW ZEALAND
• Robust outbound demand from NZ
• Premium cabin mix change driving
elevated RASK led by strong demand
from Asia outbound
• Passenger volumes stable on prior
period, sequential improvement vs
prior six months
• Signs of improvement in business-
purpose demand later in the 1H
period and continuing into 2H
• Growth delivered through two
new A321neo leased aircraft
• Solid demand for NZ outbound
leisure travel
•Inbound demand strength
amid constrained capacity
•Solid NZ outbound demand
to Canada, weaker demand
for USA
1H revenue growth driven by international inbound
bookings, domestic bookings soft
ASKs(2.6%)
Load factor change(1.3) pt
RASK ex FX and
breakage
+0.6%
ASKsFlat
Load factor change+0.1 pt
RASK ex FX and
breakage
Flat
ASKs+6.9%
Load factor change(1.3) pt
RASK ex FX and
breakage
(0.5%)
ASKs+9.0%
Load factor change+0.1 pt
RASK ex FX and
breakage
+1.3%
Premium cabin
revenue growth
+10%
Economy cabin
revenue growth
+2%
Ancillary revenue+10%
Air New Zealand Interim Results 2026
PRODUCT MIX
• Freighter competition impacting cargo yields
•Cargo exposed to overall market volatility
• Inbound/outbound
demand remains strong
• Growth delivered through
delivery of two new
A321neo leased aircraft
• Christchurch-Adelaide new route launched Oct 2025
Note: figures represent the year on year change in each metric from 1H 2025 to 1H 2026.
ASKs(4.6%)
Load factor change+2.5 pt
RASK ex FX and
breakage
+10.2%

AIR NEW ZEALAND 2026 INTERIM RESULTS
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Air New Zealand Interim Results 2026
8
2026 network remains sub-scale; carrying costs from
engine issues continue to drag on near-term earnings
Aircraft availability assumptions are fluid but
currently expect slight 2H improvement vs 1H
up to 3
A321neos expected to be
grounded in 2H 2026
Positive signs of
improved maintenance
capacity and throughput
however still carrying
significantly more spare
engines than normally
required
up to 4
787 Dreamliners expected
to be grounded in 2H 2026
New certification of fan
blade, extending engine
time on wing, improving
confidence in the
engine return profile
Pre-Covid (2019)
Actual
2024
Actual
2025
Actual
2026
Forecast
Pre-Covid (2019)
Actual
2024
Actual
2025
Actual
2026
Forecast
35.4
34.1
Domestic
capacity
expected to be
~8% below pre-
Covid levels by
end of FY26
International
capacity
expected to be
~10% below pre-
Covid levels by
end of FY26
~35.0
Domestic network size
(Billion ASKs)
6.6
6.4
~6.5
7.1
38.9
International
1
network size
(Billion ASKs)
1
International capacity includes long-haul and international short-haul (Tasman and Pacific Islands) networks.

AIR NEW ZEALAND 2026 INTERIM RESULTS
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Air New Zealand Interim Results 2026
9
29%
37%
NZ CPI from
2019 to 1H 2026
Non-fuel
operating costs
32%
Air NZ
Domestic fares
Air New Zealand domestic fares have
also risen, but not to the same extent
Cumulative inflation ex-fuel is above NZ CPI
for the same period
Key drivers within this:
Landing charges +64%
1
Engineering materials +45%
Air navigation charges +37%
Labour +31%
Cost inflation is outpacing NZ CPI driven by structurally
higher domestic aviation system costs
1
Offshore landing charges have remained relatively flat in the period 2019-1H 2026. Domestic landing charges have increased approximately 85%

AIR NEW ZEALAND 2026 INTERIM RESULTS
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Air New Zealand Interim Results 2026
10
Regional OTP
1
improved to
83.9% from 73.3% following a
comprehensive schedule review
and reset
CustomerOperational
Financial
Meaningful progress has been delivered in the face
of these challenges
Ranked 2nd in APAC 2025
Cirium OTP Review
Automated disrupt capability:
83% of cancelled domestic
flights auto-rebooked; 71%
resolved with no human
intervention
Major refresh of loyalty
programme, including launch
of new tier, Koru Black
Seven retrofitted Boeing 787
aircraft back in service
CSAT levels remain high
Incremental ~$45 million in
transformation benefits for
1H 2026, with ~$145 million
cumulative benefits since 2025
Issued A$300 million medium-
term notes
Over 5.2 million Airpoints
TM

members, 8% growth
1
Refers to on-time performance, which is a measure of arrivals within 15 minutes of scheduled arrival time.

AIR NEW ZEALAND 2026 INTERIM RESULTS
11
All information is private and confidential
Air New Zealand Interim Results 2026
Air New Zealand Interim Results 2026
11
Financial
Update
Richard Thomson – Chief Financial Officer

AIR NEW ZEALAND 2026 INTERIM RESULTS
12
Air New Zealand Interim Results 2026
12
1
1H 2026 overview
•Operating revenue of $3.4 billion, up 1.2%
•Passenger revenue of $3.0 billion, up 3.6%
•Loss before taxation of $59 million
•Net loss after taxation of $40 million
•Liquidity of $1.3 billion
2
•Net debt to EBITDA of 2.6x
•No interim dividend
3
, in line with Capital
Management Framework settings
Covid-19
impacted
period
(Loss)/Earnings before taxation
($ millions)
(376)
299
185
144
(59)
1H 20221H 20231H 20241H 2025
Restated
1H 2026
1
1H 2025 results restated for an omission in the end of lease provision. Refer to Note 1 of the Interim Financial Statements for further detail.
2
As at 31 December 2025, includes $1.09 billion cash and $250 million in undrawn funds under the syndicated bank revolving credit facility.
3
The airline’s policy is to pay ordinary dividends equal to between 40% to 70% of underlying net profit after tax (underlying NPAT), subject to the Board's discretion. 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.

AIR NEW ZEALAND 2026 INTERIM RESULTS
13
Air New Zealand Interim Results 2026
13
1H 2026
Loss before taxation
(Reported)
1H 2026
Estimated impact
of engine issues
1H 2026
Compensation received
1H 2026
Comparable Earnings
before taxation
~$90 million
1

residual adverse impact to
earnings, despite compensation of
$55 million in 1H 2026
(59)
~135
to
~155
(55)
~20
to
~40
Impact of engine delays on financial performance has
been significant, despite compensation
(Loss)/Earnings before taxation adjusted for estimated impact of engine issues
($ millions)
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.

AIR NEW ZEALAND 2026 INTERIM RESULTS
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Air New Zealand Interim Results 2026
14
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 2025
• Landing charges, labour, engineering
materials and air navigation driving
inflationary uplift of 3.4% for 1H 2026
• Rate only impact on key P&L lines as
follows:
Profitability waterfall
1
1H 2025 results restated for an omission in the end of lease provision. Refer to Note 1 of the Interim Financial Statements for further detail.
2
For further details on fuel cost movement, refer to slide 34.
3
Total movement represented by: Maintenance (+$69 million) driven by aircraft lifecycle and engine maintenance costs, as well as price inflation; Aircraft Operations (+$18
million) driven by price inflation on landing and air navigation charges; and Passenger Services (+$31 million) driven by mandated passenger levies and cost inflation.
4
Full-time equivalent staff levels increased 1.1% to ~11,720.
5
Movement primarily driven by Other Expenses reflecting temporary Wamos wet lease costs of $15 million.
1H 2026 price
change vs 1H 2025
Maintenance5%
Aircraft operations5%
Passenger services 12%

AIR NEW ZEALAND 2026 INTERIM RESULTS
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Air New Zealand Interim Results 2026
15
15.19
14.11
0.44
0.36
(0.03)
0.31
1H 2025
CASK
DISECONOMIES
OF SCALE
AND
INEFFICIENCIES
PRICEFUEL PRICEFOREIGN
EXCHANGE
1H 2026
CASK
Reported CASK
(cents)
•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 of fuel and foreign exchange underlying CASK increased
5.7% due to:
–Non-fuel operating cost inflation of ~3% across the cost base, including increases of
145% in Civil Aviation Authority charges, 66% in Aviation security charges and 7% in
landing charges this year alone
–Inefficiencies and wet lease costs resulting from significant levels of grounded aircraft
–Increased life cycle and other maintenance costs
1H 2026 CASK adjusted for
estimated impact of engine
maintenance delays
Fleet constraints continue to adversely impact
CASK performance
15.19
14.74
REPORTED
DEC 2025
CASK
(0.45)
ADJUST FOR
ENGINE-RELATED
DISECONOMIES
AND
INEFFICIENCIES
ADJUSTED
DEC 2025
CASK
.
1
Restated for an omission in the end of lease provision. Refer to Note 1 of the
Interim Financial Statements for further detail.
1

AIR NEW ZEALAND 2026 INTERIM RESULTS
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Air New Zealand Interim Results 2026
16
650
700
750
800
850
70.075.080.085.090.095.0100.0
UnhedgedHedged
Fuel hedging
•Elevated crack spread levels observed in Q2 2026
•Majority of hedges in Brent Crude with some opportunistic Singapore
Jet swaps done in 2H
•Hedge portfolio structured to protect against upside movements and
allow participation to downward price movements through exposure
hedged in collars
1
Assumes an average jet fuel price of USD85 per barrel for 2026.
2
Assumes an average jet fuel price of USD85 per barrel for 2H 2026 and a NZD/USD rate of 0.6000. Forecast valuation date of 6 February 2026. Further
information on fuel movements can be found in the fuel waterfall on slide 34.
Fuel hedge position
(as at 6 Feb 2026)
Period
Hedged volume
(in barrels)
% hedged
2H 20263,450,00083%
1H 20271,900,00046%
Foreign exchange hedging
•US dollar is ~77% hedged for 2H 2026 at NZD/USD ~0.59
•Australian dollar is ~88% hedged at NZD/AUD ~0.89
Fuel hedging and FX update
2026 Fuel cost outlook
2H 2026 Fuel cost
2
sensitivity (inclusive of hedging)
NZD cost of fuel (millions)
Singapore Jet USD/barrel
746
738
1,484
774
200
400
600
800
1,000
1,200
1,400
1,600
1H2HFY
~730 –
750
1
~1,500
- 1,525
2025
2026E
2026
NZD cost of fuel (millions)

AIR NEW ZEALAND 2026 INTERIM RESULTS
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Air New Zealand Interim Results 2026
17
Actual and forecast aircraft capital expenditure
1
•Forecast investment of ~$3.4 billion in
aircraft and associated assets from 2H
2026 to 2031
2
•Chart includes the cost of interior retrofit of
14 existing 787 aircraft and a refresh of
seven 777-300ER aircraft
‒Forecast total cost of ~$450 million
for both programmes, over 2H 2026 to
2028
‒787 retrofit currently expected to be
completed by end of calendar year
2026
‒First 777-300ER refresh expected to
start by early calendar year 2027
1
Includes progress payments on aircraft and aircraft improvements (e.g. refurbishment); excludes engine maintenance. Please refer to slide 36 for fleet delivery table.
2
Based on expected delivery dates, not contractual delivery dates.
Fleet investment update
Air New Zealand Interim Results 2026
Actual and forecast aircraft capital expenditure
1
0
100
200
300
400
500
600
700
800
900
1,000
1,100
20242025202620272028202920302031
HistoricalForecast 787 and 777-300 retrofitForecast excl. retrofit
$ millions

AIR NEW ZEALAND 2026 INTERIM RESULTS
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Air New Zealand Interim Results 2026
18
Robust liquidity and prudent Capital Management
Framework provide resiliency
Financed
Unencumbered
Dec 2025
Leverage is marginally
above the target range due
to reduced EBITDA at a time
of greater investment spend
Continued growth in
unencumbered fleet
1
to
~$2.3 billion, a strong
source of contingent liquidity
Liquidity has been
actively managed to
within the $1.2 billion to
$1.5 billion target range
Liquidity
target range
Leverage
target range
1.5 – 2.5x
Dec 2025Dec 2025
Cash
Undrawn Debt Facilities
Net Debt / EBITDA
Focus on executing
earnings recovery
and prudently
managing capital
investment, as aircraft
return to service
2.6x
$1.3b
$5.1b
$2.3b
1
Unencumbered fleet excludes spare engines. Aircraft valuations based on Aircraft Value Analysis Company Limited (AVAC) as at 30 June 2025. USD values are converted to NZD at 31 December 2025 balance sheet rate of 0.5830.
Aircraft valuations are subject to market conditions, aircraft condition, FX rates, technology advancement and other factors.

AIR NEW ZEALAND 2026 INTERIM RESULTS
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All information is private and confidential
Air New Zealand Interim Results 2026
Air New Zealand Interim Results 2026
19
Outlook
Nikhil Ravishankar – Chief Executive Officer

AIR NEW ZEALAND 2026 INTERIM RESULTS
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Air New Zealand Interim Results 2026
20
2H 2026 capacity reflects expected return of some
grounded aircraft
Sector
2025 ASKs
(millions)
1H 2026
Actuals
(vs 1H 2025)
2H 2026
Estimate
(vs 2H 2025)
2026
Estimated
Capacity
(vs 2025)
Commentary
Domestic6,409Flat2% to 4%1% to 2%
•Assumes one A321neo returns to
service with procurement of additional
leased engines
Tasman and Pacific
Islands
11,5628.4%10% to 11%9% to 10%
•Strong growth supported by widebody
flying and additional A321neo leased
aircraft delivered in calendar year 2025
International long-
haul
22,530(3.6%)0% to 1%(2%) to (1%)
•Enabled by six month wet lease aircraft
in NW25 season, with up to two 787s
returning to service following engine
maintenance
Group
40,501Flat3% to 4%1% to 2%
Estimated capacity for
2026 expected to be
~10% below pre-Covid

AIR NEW ZEALAND 2026 INTERIM RESULTS
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Air New Zealand Interim Results 2026
21
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 in recent weeks
−Long-haul performance expected to come under pressure into New Zealand winter as inbound visitor mix slows and outbound demand to certain markets
remains soft due to weaker New Zealand dollar
−Other Revenue and Income includes majority of compensation from OEMs which remain under negotiation for a portion of the 2H 2026 period
•Non-fuel operating costs
−Inflation expected to increase full year non-fuel operating costs by ~$150 million to $175 million. Notable increases in Maintenance (due to supply chain
constraints), Passenger Services (due to mandated domestic passenger levies) and Aircraft Operations (due to landing charges)
−Life cycle maintenance expense primarily on 787 and A320 fleets expected to drive ~$80 million to $100 million headwind for the full year
•Other
−Transformation benefits of $100 million to $120 million expected for full year with ~$45 million incremental benefits in 1H
−Incremental depreciation of $40 million to $60 million for full year, driven largely by 787 retrofit and two leased A321neos

AIR NEW ZEALAND 2026 INTERIM RESULTS
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Air New Zealand Interim Results 2026
22
•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 remains subject to material uncertainty, including engine return schedules,
the timing and quantum of compensation, and continued volatility across key input costs
and demand conditions.
•Compensation arrangements in respect of certain engines are yet to be agreed for the
second half. Air New Zealand is in active negotiations with the relevant manufacturers.
While the airline is working hard towards a fair outcome, the timing and quantum of further
compensation remains uncertain, and this could materially impact 2026 full year earnings.
2026 Outlook

All information is private and confidential
Air New Zealand Interim Results 2026
Air New Zealand Interim Results 2026
Supplementary
information
24

AIR NEW ZEALAND 2026 INTERIM RESULTS
25
Air New Zealand Interim Results 2026
25
31 Dec 202530 June 2025
Capital management targets
Gross debt
1
(3,267)(2,838)
Cash, restricted deposits and net open
derivatives
1

1,3121,758
Net debt
1
(1,955)(1,080)
Gross debt/EBITDA*4.3x3.0x
Net debt/EBITDA*2.6x1.2x
Net Debt to EBITDA ratio of
1.5x to 2.5x
Return on invested capital (ROIC)
2,
*Not reported7.3%Target ROIC above pre-tax WACC
Total liquidity
1
1,3441,686
Target liquidity range of
$1.2 billion to $1.5 billion
Moody's ratingBaa1 stable (investment grade)Baa1 stable (investment grade)Investment grade
Shareholder distributions declaredNo interim dividend declared1.25cps interim and 1.25 cps final
unimputed ordinary dividends
Ordinary dividend payout ratio of 40% to
70% of underlying net profit after
taxation (NPAT)
3
1
In $ millions.
2
Return on invested capital not calculated at the interim results.
3
NPAT is calculated on a rolling twelve-month basis as further explained on slide 12.
* 30 June 2025 restated for an omission in the end of lease provision. Refer to Note 1 of the Interim Financial Statements for further detail.
Key capital management metrics

AIR NEW ZEALAND 2026 INTERIM RESULTS
26
Air New Zealand Interim Results 2026
26
Dec 2025
$M
Dec 2024
$M
Movement
$M
Movement
%
Operating revenue
3,4443,403411%
(Loss) / earnings before taxation
1
(59)144(203)(141%)
Net (loss) / profit after taxation
1,2

(40)98(138)(141%)
Operating cash flow
213424(211)(50%)
Cash position
3
1,0941,436
(342)(24%)
Ordinary dividends declared
- cps1.25 cps
(1.25) cps(100%)
Financial overview
1
Restated Dec 2024 for an omission in the end of lease provision. Refer to Note 1 of the Interim Financial Statements for further detail.
2
Equates to an effective tax rate of 32%. The effective tax rate has been impacted by the statutory time bar applying to a tax dispute in Brazil, leading to the release of a provision.
3
Comparison at 30 June rather than 31 December.

AIR NEW ZEALAND 2026 INTERIM RESULTS
27
Air New Zealand Interim Results 2026
27
Dec 2025
$M
Dec 2024
$M
Movement
1
%
Passengers carried (‘000s)8,1208,0860.4%
Available seat kilometres (ASKs, millions)
20,524
20,4530.3%
Revenue passenger kilometres (RPKs, millions)
17,163
17,0320.8%
Load factor
83.6%83.3%
0.3 pts
Passenger revenue per ASKs as reported (RASK, cents)
14.714.2
3%
Passenger revenue per ASKs, excluding FX (RASK, cents)
14.514.2
2%
Passenger revenue per ASKs excluding FX and unused credit
breakage (RASK, cents)
2
14.514.2
2%
1
Calculation based on numbers before rounding.
2
This is RASK excluding $11million in unused customer credit breakage (Dec 2024: $10million) which has been recognised within passenger revenue.
Group performance metrics

AIR NEW ZEALAND 2026 INTERIM RESULTS
28
Air New Zealand Interim Results 2026
28
1
Calculation based on numbers before rounding.
2
This is RASK excluding $3 million in unused customer credit breakage (Dec 2024: $3 million) which has been recognised within passenger revenue.
Dec 2025
$M
Dec 2024
$M
Movement
1
%
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 factor83.4%83.3%
0.1 pts
Passenger revenue per ASKs as reported (RASK, cents)
29.929.9
0.1%
Passenger revenue per ASKs, excluding FX (RASK, cents)
29.829.9
(0.3%)
Passenger revenue per ASKs excluding FX and unused credit
breakage (RASK, cents)
2
29.729.8
(0.3%)
Domestic

AIR NEW ZEALAND 2026 INTERIM RESULTS
29
Air New Zealand Interim Results 2026
29
Dec 2025
$M
Dec 2024
$M
Movement
1
%
Passengers carried (‘000s)2,0801,9417%
Available seat kilometres (ASKs, millions)
6,3555,8648%
Revenue passenger kilometres (RPKs, millions)5,4795,0708%
Load factor86.2%86.5%
(0.3) pts
Passenger revenue per ASKs as reported (RASK, cents)
13.413.2
1%
Passenger revenue per ASKs, excluding FX (RASK, cents)
13.313.2
1%
Passenger revenue per ASKs excluding FX and unused credit
breakage (RASK, cents)
2
13.313.2
1%
1
Calculation based on numbers before rounding.
2
This is RASK excluding $4 million in unused customer credit breakage (Dec 2024: $3 million) which has been recognised within passenger revenue.
Tasman & Pacific Islands

AIR NEW ZEALAND 2026 INTERIM RESULTS
30
Air New Zealand Interim Results 2026
30
Dec 2025
$M
Dec 2024
$M
Movement
1
%
Passengers carried (‘000s)947971(3%)
Available seat kilometres (ASKs, millions)
10,94411,354(4%)
Revenue passenger kilometres (RPKs, millions)8,9959,267(3%)
Load factor82.2%81.6%
0.6 pts
Passenger revenue per ASKs as reported (RASK, cents)10.910.27%
Passenger revenue per ASKs, excluding FX (RASK, cents)10.710.24%
Passenger revenue per ASKs excluding FX and unused credit
breakage (RASK, cents)
2
10.710.24%
1
Calculation based on numbers before rounding.
2
This is RASK excluding $4 million in unused customer credit breakage (Dec 2024: $4 million) which has been recognised within passenger revenue.
International long-haul

AIR NEW ZEALAND 2026 INTERIM RESULTS
31
Air New Zealand Interim Results 2026
31
Dec 2025
$M
Dec 2024
$M
1
Movement
$M
Movement
%
Other revenue and income
3783(46)(55%)
Fuel
-2(2)(100%)
Maintenance
11--
Other expenses
4-4NA
Depreciation and amortisation
128
450%
Finance costs
1-
1NA
Total compensation received from manufacturers
5594
(39)(41%)
Compensation summary
1
$30 million of the $94 million prior period compensation amount relates to other periods.

AIR NEW ZEALAND 2026 INTERIM RESULTS
32
Air New Zealand Interim Results 2026
32
Cargo revenue
($ millions)
5
Dec
2024
(19)
Volume
(4)
YieldFXDec
2025
257
239
•Cargo revenue of $239 million, down 7% on
prior year. Key drivers include:
−Lower volumes driven by reduced load factors
on the Tasman, alongside weaker northbound
volumes to North America
−Lower yields due to heightened international
competition and an adverse mix shift toward
lower-yield trans-shipment and interline
•Digital transformation benefits are starting to deliver
improved customer experience and greater revenue
management capability
Cargo performance

AIR NEW ZEALAND 2026 INTERIM RESULTS
33
Air New Zealand Interim Results 2026
33
Invest in core operations
Maintain financial resilience and flexibility
DistributionsGrowth 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)
1
• Return excess capital via special
dividends or share buybacks
• Disciplined investment in value
accretive capex
• Target ROIC above pre-tax
WACC
•~$100 million of engine maintenance overhauls
•Seven retrofitted 787-9 back in service
•Completed Hangar 4 at Auckland jet base
•Completed share buyback ($43 million in 1H 2026, $81
million in total for the programme)
•~$250 million of pre-delivery payments made in
respect of upcoming aircraft and engine deliveries
•Took delivery of second of two new leased A321neo
aircraft for the short-haul network
•~$270 million debt and leases paid down
•Issued AUD$300m 7 year AMTN
•Five further aircraft included in unencumbered pool
•Received remaining $125 million of cash collateral,
following transition to new global payments provider
PROGRESS MADE IN 1H 2026
Capital management progress
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.

AIR NEW ZEALAND 2026 INTERIM RESULTS
34
Air New Zealand Interim Results 2026
34
Decrease in
jet fuel price
US$91 to
US$88
per barrel
(
$6 million decrease
in fuel price
1
(1%)
Fuel cost movement
1
Net hedging impact in the period was nominal.
2
Sustainable aviation fuel (SAF) costs of $12 million, CORSIA obligations of $13 million and New Zealand Emissions Trading Scheme (NZ ETS) expenses of $18 million are included within fuel costs for the period.
10
24
Dec 2024
Fuel Cost
VolumeUnderlying
Price
FX
Movements
Dec 2025
Fuel Cost
746
774
(6)

AIR NEW ZEALAND 2026 INTERIM RESULTS
35
Air New Zealand Interim Results 2026
35
Debt maturity profile at 31 Dec 2025
2
($ millions)
57 unencumbered aircraft at 31 Dec 2025
•In addition, equity of ~$1.7 billion
1
in existing aircraft within debt
facilities
116
247
130
95
74
181
158
46
105
344
264
344
2H 2026202720282029203020312032
26
20332034
Secured Debt and Finance Leases
NZ Retail Bond
Australian Medium Term Notes
1
Aircraft only. Aircraft valuations based on Aircraft Value Analysis Company Limited (AVAC) as at 30 June 2025. USD values are converted to NZD at 31 December 2025 balance sheet rate of 0.5830. Foreign currency denominated debt outstanding
as at 31 December 2025 also converted to NZD at balance sheet rates (JPY: 91.10, EUR: 0.4950). Aircraft valuations are subject to market conditions, aircraft condition, FX rates, technology advancement and other factors.
2
Excludes operating leases (leases without purchase options). Finance leases are leases with purchase options.
Debt structure and maturity profile
777-300ER5x
787-92x
A320/321neo7x
A320ceo9x
AT R 7 2-60011x
Q30023x

AIR NEW ZEALAND 2026 INTERIM RESULTS
36
Air New Zealand Interim Results 2026
36
AircraftEngines
Number in
Fleet
Average Age
1
(Years)
Expected Delivery Dates
2H 202620272028202920302031
International
777-300ER
GE90
Core fleet: 7
Short term
leased: 3
13.7
14.0
787-9
3
Trent 1000
(GE engines
for 2H 2026
deliveries
onward)
149.3222112
A321neo
(short haul)
PW110095.42
A320neo
(short haul)
PW1100 65.8
Domestic
A321neo
(domestic)
PW1100 52.62
A320ceo
(domestic)
V25001711.9
ATR72-600
PW127318.3
Q300
PW1232318.9
TOTAL
112
2
9.8
2
Fleet profile
3
New 787 deliveries expected from 2026 to 2031 will be a mix of 787-9 and 787-10 aircraft. Contractual options were
exercised for two 787-10s post 30 June, with expected delivery in 2028.
1
Total fleet average age is seat weighted for operating aircraft. This includes aircraft currently grounded due to maintenance delays.
2
This excludes short-term leased aircraft.

AIR NEW ZEALAND 2026 INTERIM RESULTS
37
Air New Zealand Interim Results 2026
37
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,net finance costs and taxation
Gross DebtInterest-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 credit
facility available to be drawn
Passenger Load FactorRPKs as a percentage of ASKs
Passenger Revenue/ASK (RASK)Passenger revenue for the period divided by the total ASKs on passenger flights for the period
Revenue Passenger Kilometres (RPKs)Number of revenue passengers carried multiplied by the distance flown (demand)
The following non-GAAP measures are not audited: Adjusted CASK, Net Debt and EBITDA. Amounts used within the calculations are derived from the condensed Group interim financial statements where possible. The interim financial
statements are subject to review by the Group’s external auditors. 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

AIR NEW ZEALAND 2026 INTERIM RESULTS
38
Air New Zealand Interim Results 2026
38
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

AIR NEW ZEALAND 2026 INTERIM RESULTS
39

---

Interim
Financial
Report
2026

N e w Yo r k
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San Francisco
Los Angeles
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Honolulu
Ta h i t i
Rarotonga
Samoa
Niue
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New Caledonia
Cairns
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Sydney
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Hobart
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Denpasar
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Ta i p e i
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To k y o
Air New Zealand Interim Report 2026
Air New Zealand Group03Air New Zealand Group02
Contents
02 Where we fly
04 Letter from the Chair
09 Letter from the Chief Executive Officer
12 Financial Commentary
15 Change in Earnings
16 Condensed Consolidated Interim Financial Statements
26 Independent Auditor's Review Report
27 Shareholder Enquiries
Kerikeri
Whangārei
Tauranga
Hamilton
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Nelson
Blenheim
Hokitika
Timaru
Dunedin
Invercargill
Queenstown
Christchurch
Wellington
Auckland
Route is temporarily suspended.
Where
we fly
Network

Dame Therese Walsh
Chair
Letter from the Chair
Air New Zealand is proud to be
New Zealand’s national airline,
and keeping our country and
communities connected is a
responsibility we take seriously.
The operating environment across the half remained
demanding and disruption placed real pressure on teams
right across the airline. I know how much has been
asked of our people. To Air New Zealanders across the
network, thank you for how you’ve responded – with
professionalism, resilience and a strong focus on keeping
things moving.
For the first half of the 2026 financial year, Air New
Zealand recorded a loss before taxation of $59 million
and a net loss after taxation of $40 million. This
result reflects the combined impact of ongoing fleet
Air New Zealand Group05Air New Zealand Group04
Air New Zealand Interim Report 2026
Kia ora
koutou
Welcome
constraints, a slower-than-expected recovery in domestic
demand, and rising costs, including persistently high
aviation system inflation. Cost pressures have been
further exacerbated by a weaker New Zealand dollar.
While some of these pressures are cyclical, others are
more enduring and they are directly impacting both the
cost of flying and affordability for customers.
Late last year, the Board and I asked Nikhil to undertake
a company-wide strategy review. The environment we are
operating in has changed, and as New Zealand's national
airline we play an important role in supporting New
Zealand, particularly as it relates to export and tourism.
The strategy reset will allow us to be firmly focused on
strengthening and growing our airline to deliver long-term
growth and prosperity for New Zealand.
Fleet availability remained one of our most significant
headwinds across the first half, both operationally and
financially, with up to eight aircraft grounded at times
due to global engine maintenance delays. This has been
frustrating for customers and our teams alike and has
had a material financial impact. The airline received
$55 million of compensation from engine manufacturers
Pierre & Brooke
Customer Service Agents
Lani
Flight Attendant

Air New Zealand Group07Air New Zealand Group06
Letter from the Chair (continued)
during the period, however it estimates an additional
$90 million¹ of earnings could have been included
within the result had the fleet operated as intended.
We continue to work closely with manufacturers to
improve certainty around engine return schedules and
appropriate compensation.
While there are some early signs of improvement in
the outlook for engine returns in the second half, the
financial benefit will take longer to flow through. That
is because widebody capacity cannot be reintroduced
into the schedule and sold at short notice. The primary
constraint is uncertainty in the timing of aircraft and
engine returns, which limits our ability to plan and sell
additional flying with confidence. Disruption-related
costs and inefficiencies also take time to unwind.
Financial result
Passenger revenue increased four percent to $3.0 billion,
supported by additional capacity across Tasman and
Pacific Islands routes and a higher mix of premium
seating on international services. Domestic performance
was below expectations reflecting a slower recovery in
domestic demand, in particular business purpose travel,
alongside continued cost pressures. Passenger revenue
also includes $11 million of unused travel credit breakage,
reflecting the conclusion of the Covid-era travel credit
programme. This follows a multi-year extended redemption
period to support customers to use their credits.
Operating costs including fuel were up eight percent,
with the benefits of lower fuel prices offset by higher
input costs across the business and a weaker New
Zealand dollar.
Fuel costs increased, with the benefit of lower jet fuel
prices more than offset by a weaker New Zealand
dollar, higher cost of carbon and the operation of less
fuel-efficient aircraft due to engine constraints.
Non-fuel operating cost inflation of approximately
$75 million was driven primarily by mandated passenger
levies, engineering and maintenance costs, and airport
landing charges. As we have noted previously, domestic
aviation system charges have risen materially ahead
of New Zealand CPI and are expected to continue on
this trajectory. That puts sustained upward pressure
on the cost of flying, for both Air New Zealand, and
ultimately for customers. This reinforces why getting
the settings right across the aviation system is so
important. The airline’s concern is not only about the
current level of these costs, but the future trajectory
and potential for further increases over time, which
would place additional pressure on the business, and
the sustainability of regional connectivity.
Against this backdrop, the airline continued to progress its
Kia Mau transformation programme and delivered around
$45 million in incremental benefits in the half, with around
$145 million in cumulative benefits since the programme
started. These benefits are meaningful and reflect the
realisation and ramp up of initiatives outlined at the 2025
annual results, alongside operational improvements.
However, the pace and scale of external cost inflation
have meant these gains have not been sufficient on their
own to offset inflation in the underlying cost base. This
will be addressed as part of the ongoing strategic review.
Capital management and dividend
Based on the result announced today the Board has
not declared an interim dividend, consistent with the
airline’s Capital Management Framework. In the current
environment, we are taking a prudent approach to
distributions, prioritising balance sheet resilience and
maintaining financial flexibility while operating conditions
remain challenging and uncertainty persists across fleet
availability, compensation and key cost inputs.
We remain committed to disciplined capital management
and to returning capital when conditions support it.
Georgia
Flight Attendant
Air New Zealand Interim Report 2026
Air New Zealand's new uniform
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.

Letter from the Chair (continued)
Guidance
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 remains subject to material
uncertainty, including engine return schedules, the
timing and quantum of compensation, and continued
volatility across key input costs and demand conditions.
Compensation arrangements in respect of certain
engines are yet to be agreed for the second half.
Air New Zealand is in active negotiations with the
relevant manufacturers. While the airline is working
hard towards a fair outcome, the timing and quantum
of further compensation remains uncertain, and this
could materially impact 2026 full year earnings.
Looking ahead
Air New Zealand has strong foundations in our people,
our brand, and the capability we are building across
the business. The operating environment remains
challenging, but our role and our focus is clear: serving
New Zealand well, today and for the long term.
To our customers, shareholders, partners, and the wider
Air New Zealand whānau, thank you for your support.
Ngā mihi nui,
Dame Therese Walsh
Chair
Air New Zealand Interim Report 2026
Air New Zealand Group09
I want to take this opportunity to
welcome Nikhil Ravishankar,
our new Chief Executive Officer.
Nikhil brings deep knowledge of Air New Zealand and
the sector, and a clear focus on what matters most:
connecting New Zealanders to each other and the
world, delivering value for customers, and running an
airline Kiwis can be proud of. His leadership is already
sharpening our priorities, including lifting operational
performance, improving productivity, and ensuring the
airline is positioned to succeed. The Board and I are
excited about the next chapter for Air New Zealand
under Nikhil’s leadership.
Kia ora.
This is my first set of results as
Chief Executive, and I have been
reflecting on what it means to
lead our national airline.
First of all, I want to say thank you to Air New Zealanders
across the airline, for the professionalism and care you
show our customers and each other, every day. I see it,
I hear it from customers, and I am incredibly grateful for
it. I also know that when we don’t deliver the experience
people expect from us, it can create real stress and
disruption and that weighs heavily on all of us.
Air New Zealand has always been more than an airline.
We connect families and friends, ideas and opportunities.
We carry the trade, talent and ambition that keeps
Aotearoa New Zealand moving and growing. For visitors,
we are often their first experience of New Zealand. For
Kiwis overseas, we are the welcome home. That role is
a privilege, and it is also why we have to run a strong,
resilient business that can deliver over the long-term.
Letter from the Chief Executive Officer
Nikhil Ravishankar
Chief Executive Officer
Eunice, Connor & Don
Aircraft Engineers
Air New Zealand Group08

Air New Zealand Interim Report 2026
Air New Zealand Group011
As I have stepped into this role, I have spent a lot of
time listening – on the ramp, in cabins, at airports, with
engineers and planners, and with former CEOs of the
airline. Two things have really stood out for me in those
conversations – the strength of the foundations we
have, and the standard this airline has set over decades.
We have an incredible legacy to build on. At the same
time, we are operating in a challenging environment.
Capacity constraints, cost escalation and a slower than
expected recovery in domestic demand have created
real pressure on financial performance.
Our response cannot be to wait and hope that
conditions improve. We have to act, decisively and with
discipline, on the things within our control.
My first 100 days were spent focusing on five clear
priorities. They span safe, punctual and world-class
service for our customers; driving profit improvement
while reviewing our cost base and reducing non-essential
spend; working with our engine manufacturers to
get grounded aircraft back faster; strengthening our
advocacy for a fair, affordable aviation system for New
Zealand; and finally, undertaking a full review of our
strategy and operating model.
And you can already see progress in some of the things
that matter most to customers, namely punctuality and
reliability, driven by a redesigned schedule and sharper
operational execution. We will keep building on that.
At the same time, the cost environment we are
operating in is fundamentally different. Continued
cost escalation across the aviation system and global
supply chain is putting pressure on affordability and
the sustainability of regional connectivity. That is why,
when I took up the role in October, the Board asked me
to undertake a company-wide strategy review to reset
the business.
With the Board’s direction, we are reviewing all
aspects of the airline with a clear objective: returning
Air New Zealand to sustained profitability through
stronger operational performance, growth and further
cost transformation initiatives.
While this work is underway, we are not standing still.
Performance and product improvements are already
being delivered, including improvements in domestic
punctuality and reliability, and a decision to upgrade
the interiors of our existing Boeing 777-300ER fleet
so our widebody product is consistent, modern and
mission-ready.
We are also positioning the airline for growth as fleet
constraints ease. Later this financial year we will take
delivery of the first two of ten new GE-powered Boeing
787 aircraft. These deliveries support widebody
capacity growth of around 20 percent to 25 percent
over the next two years.
As the strategy review progresses, we will share more
about what it means for our airline. For now, my message
is simple: we will focus on what matters most, make
smart long-term choices, and keep building a stronger
Air New Zealand – because a strong Air New Zealand is
good for New Zealand.
We are of New Zealand, for New Zealand – this is our
commitment. A commitment to deliver for our people, our
customers, our shareholders, and the communities across
Aotearoa New Zealand we have the privilege to serve.
Ngā mihi nui,
Nikhil Ravishankar
Chief Executive Officer
Air New Zealand
Letter from the Chief Executive Officer (continued)
Air New Zealand Group10
L to R: Georgia & Rachel
Flight Attendants
Paul
Deputy Fleet Manager
B777/B787
Air New Zealand Group11
Rachel
Flight Attendant
Changes to our Executive Team
We were pleased to welcome Kate Boyer, Jeremy
O’Brien and Scott Wilkinson into the leadership team
in recent months.
Kate Boyer has been appointed Chief Operations
Officer, Ground and Inflight, and brings deep
operational experience and a strong track record of
lifting performance across our airport network.
Jeremy O’Brien has stepped into the newly created
Chief Customer and Digital Officer role, drawing on
extensive experience in commercial strategy, sales
and marketing, and Air New Zealand leadership across
customer, loyalty, marketing and brand.
Scott Wilkinson commenced as Chief Commercial
Officer in October, bringing strong capability across
airline commercial strategy, customer experience and
digital distribution. As part of his role, Scott also looks
after our Loyalty business.
At the same time, we will farewell Alex Marren, who
retires from the Chief Operating Officer role at the
end of March. Since joining Air New Zealand in 2022,
Alex has brought calm, clarity and deep operational
expertise helping rebuild performance post-Covid,
strengthening frontline tools and processes, and
leading through major disruption and ongoing fleet
constraints. We thank Alex for the critical role she has
played for the airline.

Air New Zealand Group12
Financial Commentary
Air New Zealand has reported a
loss before taxation of $59 million
for the first six months of the
2026 financial year, compared to
earnings before taxation of
$144 million for the equivalent
period last year. Net loss after
taxation was $40 million.
This result reflects the combined
impact of flat overall capacity
due to ongoing fleet constraints
associated with the global engine
issues affecting the airline’s
Boeing 787 Dreamliner and
Airbus neo fleets, persistently
high aviation system inflation, a
slower than expected recovery in
domestic demand, and a weaker
New Zealand dollar.
Revenue
Operating revenue for the period was $3.4 billion, an
increase of $41 million or 1.2 percent from the comparative
period. Excluding the impact of foreign exchange,
operating revenue was flat.
Passenger revenue increased 3.6 percent to $3.0 billion,
largely due to increased capacity on the Tasman and
Pacific Islands network following the arrival of two new
A321neo aircraft. An increased mix of premium cabins on
long-haul aircraft also contributed to increased revenue.
Excluding the impact of foreign exchange and travel credit
breakage, passenger revenue increased 2.5 percent.
However, total capacity (Available Seat Kilometers, ASK)
was largely flat, reflecting fleet constraints from the global
accelerated engine maintenance requirements, which
impacted both the international long-haul and domestic
networks. Demand (Revenue Passenger Kilometers, RPK)
increased more than capacity, resulting in a load factor of
83.6 percent, an increase of 0.3 percentage points on the
prior period.
At a Group level, Revenue per Available Seat Kilometre
(RASK) increased 3.3 percent. Excluding foreign exchange
and travel credit breakage, RASK increased 2.1 percent.
Capacity across the international long-haul network
decreased by 3.6 percent, mainly due to aircraft
availability issues, which was only partly offset by the
deployment of three leased widebody aircraft and a short-
term wet-lease aircraft. Load factors on international long-
haul increased by 0.6 percentage points to 82.2 percent
and international long-haul RASK increased by 4.4 percent
excluding the impact of foreign exchange. International
long-haul RASK excluding foreign exchange and travel
credit breakage increased 4.3 percent, driven by strong
demand for premium products.
International short-haul capacity increased by 8.4
percent relative to the prior period due to two new
A321neo aircraft entering the fleet, as well as the
deployment of a short-term widebody aircraft on
certain routes. Demand was largely in line with capacity
growth, resulting in a decrease in load factors of
0.3 percentage points to 86.2 percent. International
short-haul RASK increased 1.3 percent or 0.8 percent
excluding the impact of foreign exchange. RASK
excluding foreign exchange and travel credit breakage
increased 0.8 percent.
Domestic capacity was largely flat relative to the prior
period, with up to five narrowbody aircraft remaining
grounded at times due to engine maintenance
requirements. Demand was in line with capacity,
resulting in relatively unchanged load factors of 83.4
percent. Domestic RASK was also flat. Domestic RASK
excluding foreign exchange and travel credit breakage
decreased nominally by 0.3 percent.
Cargo revenue was $239 million, a decrease of $18 million
or 7.0 percent, including foreign exchange. Excluding
foreign exchange the decrease was $23 million. This was
largely driven by a combination of lower load factors on
certain routes and reduced flying on the international
long-haul network due to aircraft constraints. Yield
declines also contributed to the reduction, as increased
competition in Asia and a shift towards connecting cargo
trans-shipments relative to point-to-point services put
pressure on pricing.
Contract services and other revenue and income was
$195 million, a decrease of 19 percent primarily due
to a reduction in compensation received from engine
manufacturers in the current period.
Expenses
Operating expenditure was $3.1 billion, an increase of
8.0 percent on the prior period, reflecting ongoing cost
inflation and fleet inefficiencies resulting from engine
maintenance constraints.
Reported costs per ASK (CASK) deteriorated 7.7 percent,
driven by increased inflationary pressure across the
cost base, fleet inefficiencies and unfavourable foreign
exchange movements. This increase was only partly
offset by lower average fuel prices. For the six months
to 31 December 2025, inflation led to an increase of
approximately $75 million in non-fuel operating costs
compared to the prior period. Underlying CASK, which
excludes the impact of fuel price and foreign exchange,
deteriorated by 5.7 percent.
Labour costs were $850 million, an increase of 3.2
percent compared to the same period last year.
Full-Time Equivalent labour (FTE) increased 1.1 percent
to approximately 11,720.
Air New Zealand Group13
Air New Zealand Interim Report 2026
Pare
Lounge Host

Air New Zealand Interim Report 2026
Air New Zealand Group15Air New Zealand Group14
Fuel costs were $774 million, an increase of 3.8 percent
on the prior period. The increase was largely due to a
weaker New Zealand dollar, higher flying activity with
less efficient widebody aircraft and an increase in the
cost of the airline’s CORSIA* obligations. This increase
was only partially offset by a 4 percent decrease in
the underlying jet fuel price from an average of USD 91
per barrel to USD 88 per barrel, as well as favourable
hedging movements.
Aircraft operations, passenger services and maintenance
costs were $1.1 billion, an increase of 14 percent on the
prior period. This was driven primarily by increased
aircraft lifecycle and engine maintenance costs and price
inflation, significantly higher mandated passenger levies
and increased charges at domestic airports.
Sales, marketing and other expenses were $399 million,
an increase of 7.5 percent, driven largely by higher
commissions and sales activity from international
markets. It also includes costs of $15 million associated
with our wet-lease arrangement with Wamos Air.
Ownership costs were $406 million, an increase of
$18 million from the prior period. Average cash holdings
declined as the airline transitioned to targeted liquidity
levels (in line with the Capital Management Framework),
resulting in lower investment income. Net interest
costs increased as a result. Depreciation increased
due to additional deliveries and investment in engine
maintenance.
There was an unfavourable movement in foreign
exchange hedging resulting in a net $19 million
negative impact on the Group result for the period.
Share of Earnings of Associates
Share of earnings of associates was $20 million, an
increase of $5 million on the comparative period due
to supply chain improvements at the Christchurch
Engine Centre.
Cash and Financial Position
Cash on hand at 31 December 2025 was $1.1 billion,
a decrease of $342 million compared to 30 June 2025.
The movement reflects capital expenditure in the period
including pre-delivery payments on the upcoming Boeing
787 aircraft, debt and lease payments, payment of the
2025 final dividend and the share buyback, which was
partially offset by operating cash inflows, the issuance of
AUD300 million Australian medium-term notes and the
return of a restricted cash deposit. Liquidity ended the
period within the liquidity target range.
Cashflow and Debt
Operating cash flow was $213 million, a decrease of
$211 million on the prior period due to lower EBITDA
and an unfavourable net movement in working capital,
driven by higher receivables partially offset by higher
provisions. Net debt to EBITDA increased to 2.6x times,
slightly above the airline’s target range of 1.5x to 2.5x,
reflecting a decrease in EBITDA, increased gross debt,
and capital expenditure during the period. Management
and the Board continue to closely monitor Net debt to
EBITDA but expect it to remain elevated in the short
term until earnings increase, and as investment in
aircraft, interiors and systems continues.
Share buyback
In the period, the airline completed the share buyback
programme previously announced in February 2025.
A total of $43 million worth of shares were repurchased
in the period to 31 December 2025, bringing the total
number of shares repurchased under the programme to
$81 million.
Change in Earnings
The key changes in earnings, after isolating the impact of foreign exchange movements, are set out in the table below*:
December 2024
earnings before
taxation

Passenger capacity
$14m
- Capacity increased by 0.3 percent due to aircraft availability issues affecting the Airbus
A321/A320neo and Boeing 787 fleets.
- Domestic capacity decreased 0.3 percent due to engine maintenance requirement
constraints on the Airbus neo fleet.
- International short-haul capacity increased 8 percent due to increased narrowbody flying
following delivery of two new leased aircraft and deployment of a wet lease aircraft.
- International long-haul capacity decreased 4 percent due to a reduction in aircraft availability
as a result of Trent 1000 engine issues.
Passenger RASK
$58m
- Overall Group Revenue per Available Seat Kilometre (RASK) excluding FX and travel credit
breakage increased by 2.1 percent. Loads increased by 0.3 percentage points to 83.6 percent.
- Domestic RASK excluding FX and travel credit breakage decreased by 0.3 percent with load
factor increasing 0.1 percentage points to 83.4 percent.
- International short-haul RASK increased by 0.8 percent excluding FX and travel credit
breakage with load factor decreasing 0.3 percentage points to 86.2 percent.
- International long-haul RASK increased by 4.3 percent excluding FX and travel credit
breakage with load factors increasing 0.6 percentage points to 82.2 percent. The current
period was impacted by Boeing 787 availability issues with passenger demand reducing
at a lesser rate than the reduction in aircraft capacity and strong demand for premium
product offerings.
Unused Travel Credits
$1m
- An increase in breakage allowance recognised for passenger unused travel credits for
which it was considered the likelihood of those credits being utilised was remote ($11 million
recognised in the current period compared to $10 million in the comparative period).
Cargo revenue
($23m)
- Load factor reductions, capacity constraints and lower yields due to an increase in
market capacity.
Compensation income
($46m)
- Lower compensation income received from manufacturers relating to the impact of engine
shortages on the business.
Contract services and
other revenue
($8m)
- Lower customer heavy maintenance activity offset by higher ancillary income.
Labour
($26m)
- Higher labour costs due to wage inflation and operating activity increases partially offset
by productivity initiatives and lower incentive payments.
Fuel
($4m)
- Consumption increased by 1 percent ($10 million) compared to an increase in capacity of
0.3 percent. The average fuel price, net of hedging and carbon costs, decreased 1 percent
compared to the prior period resulting in a decrease in costs of $6 million. Average jet fuel
price decreased by 4 percent.
Aircraft operations,
passenger services and
maintenance
($118m)
- Higher costs related to aircraft lifecyle and engine maintenance, mandated passenger levies
and domestic landing price increases.
Sales and marketing and
other expenses
($20m)
- Short-term aircraft wet lease costs and higher commissions and sales costs.
Ownership costs
($18m)
- Lower investment income driven by lower average cash balances (as the airline transitions
to targeted liquidity levels under the Capital Management Framework) as well as higher
depreciation due to new aircraft deliveries including additional leased aircraft to cover
engine availability issues, and capitalised engine maintenance.
Net impact of foreign
exchange movements
($18m)
- Hedging losses due to market movements partially offset by favourable movements on
operating revenue and costs.
Share of earnings of
associates
$5m
- Increase in share of earnings from the Christchurch Engine Centre due to improvement in
supply chain.
December 2025
loss before taxation
$144m
*The numbers referred to in the Financial Commentary on the previous page have not isolated the impact of foreign exchange.
($59m)
Financial Commentary (continued)
*CORSIA refers to the Carbon Offsetting and Reduction Scheme for International Aviation.

Air New Zealand Interim Report 2026
Air New Zealand Group17Air New Zealand Group16



NOTES
2025
UNAUDITED
$M
2024
UNAUDITED
R E S TAT E D *
$M
Operating revenue
Passenger revenue
Cargo
Contract services
Other revenue and income2.7

3,010
239
31
164

2,905
257
33
208
Operating expenditure
Labour
Fuel
Maintenance
Aircraft operations
Passenger services
Sales and marketing
Foreign exchange (losses)/gains
Other expenses
3
2.7
2.7
2.6, 2.7
3,444
(850)
( 7 74)
(359)
(467)
(249)
(168)
(19)
(231)
3,403
(824)
( 74 6)
(285)
(446)
(214)
(157)
-
(214)
(3,117)(2,886)
Operating earnings (excluding items below)
Depreciation and amortisation2.7
327
(373)
517
(364)
(Loss)/Earnings before net finance costs, associates and taxation
Finance income
Finance costs
Share of earnings of associates (net of taxation)
2.7
2.1
(46)
37
(70)
20
153
57
(81)
15
(Loss)/Earnings before taxation
Taxation credit/(expense)
(59)
19
144
(46)
Net (loss)/profit attributable to shareholders of parent company (40) 98
Per share information:
Basic and diluted (loss)/earnings per share (cents)
Interim dividend declared per share (cents)
(1.2)
-
2.9
1.25
* December 2024 results have been restated (refer to Note 1 for further details).
The accompanying accounting policies and notes form part of these condensed consolidated interim financial statements.
Consolidated Statement of Financial Performance
For the six months ended 31 December
* December 2024 results have been restated (refer to Note 1 for further details).
The accompanying accounting policies and notes form part of these condensed consolidated interim financial statements.



NOTES
2025
UNAUDITED
$M
2024
UNAUDITED
R E S TAT E D *
$M
Net (loss)/profit for the period
Other comprehensive income/(loss):
Items that will not be reclassified to profit or loss:
Actuarial (losses)/gains on defined benefit plans
(40)
(1)
98
-
Total items that will not be reclassified to profit or loss(1)-
Items that may be reclassified subsequently to profit or loss:
Changes in fair value of cash flow hedges
Transfers to net (loss)/profit from cash flow hedge reserve
Transfers to asset carrying value from cash flow hedge reserve
Net translation gain on investment in foreign operations
Changes in costs of hedging reserve
Taxation on above reserve movements
58
(31)
(2)
2
(2)
(4)
14
(29)
-
3
(17)
13
Total items that may be reclassified subsequently to profit or loss21(16)
Total other comprehensive income/(loss) for the period, net of taxation20(16)
Total comprehensive (loss)/income for the period, attributable to shareholders
of the parent company(20)82
Consolidated Statement of Comprehensive Income
For the six months ended 31 December

Air New Zealand Interim Report 2026
Air New Zealand Group19Air New Zealand Group18
UNAUDITED




NOTES


SHARE
CAPITAL
$M


HEDGE
RESERVES
$M
FOREIGN
CURRENCY
TRANSLATION
RESERVE
$M

GENERAL
RESERVES
$M

TOTAL
EQUITY
$M
Balance as at 1 July 2025 3,346 (68) (9) (1,323) 1,946
Prior period restatement* - -- (18) (18)
Restated balance at 1 July 2025 3,346 (68) (9) (1,341) 1,928
Net loss for the period
Other comprehensive income for the period
-
-
-
17
-
4
(40)
(1)
(40)
20
Total comprehensive loss for the period- 174(41)(20)
Transactions with owners:
Equity-settled share-based payments
(net of taxation)
Equity settlements of staff share
award obligations
Acquisition of own shares
Dividends on Ordinary Shares



2.4
2.4
6

3

(2)
(43)
-


-

-
-
-

-

-
-
-

-

-
-
(41)

3

(2)
(43)
(41)
Total transactions with owners(42) - - (41) (83)
Balance as at 31 December 20252.5 3,304 (51) (5)(1,423)1,825
UNAUDITED




NOTES


SHARE
CAPITAL
$M


HEDGE
RESERVES
$M
FOREIGN
CURRENCY
TRANSLATION
RESERVE
$M


GENERAL
RESERVES
$M


TOTAL
EQUITY
$M
Balance as at 1 July 2024 3,379 (5) (9) (1,355) 2,010
Net profit for the period*
Other comprehensive loss for the period
-
-
-
(23)
-
7
98
-
98
(16)
Total comprehensive income for the period*- (23)79882
Transactions with owners:
Equity-settled share-based payments
(net of taxation)
Equity settlements of staff share
award obligations
Dividends on Ordinary Shares



2.4
6

3

(2)
-

-

-
-

-

-
-

-

-
(51)

3

(2)
(51)
Total transactions with owners1 - - (51) (50)
Balance as at 31 December 2024* 3,380 (28) (2)(1,308)2,042
* Balances have been restated (refer to Note 1 for further details).
The accompanying accounting policies and notes form part of these condensed consolidated interim financial statements.
Consolidated Statement of Changes in Equity
For the six months ended 31 December
* Balances have been restated (refer to Note 1 for further details).
The accompanying accounting policies and notes form part of these condensed consolidated interim financial statements.

NOTES
31 DEC 2025
UNAUDITED
$M
30 JUN 2025
AUDITED
R E S TAT E D *
$M
Current assets
Bank and short-term deposits
Trade and other receivables
Inventories
Derivative financial assets
Intangible assets
Income taxation
Interest-bearing assets
Other assets
2.2
1,094
561
169
73
36
28
30
17
1,436
4 41
165
55
35
28
155
15
Total current assets 2,008 2,330
Non-current assets
Trade and other receivables
Property, plant and equipment
Right-of-use assets
Intangible assets
Investments in other entities
Derivative financial assets
Interest-bearing assets
Other assets

2.1

2.2


49
4,770
1,501
199
268
144
191
5

45
4,225
1,467
178
240
60
180
6
Total non-current assets 7,127 6,401
Total assets 9,135 8,731
Current liabilities
Trade and other payables
Revenue in advance
Interest-bearing liabilities
Lease liabilities
Derivative financial liabilities
Provisions
Income taxation
Other liabilities

2.3

1,019
1,795
515
363
78
104
1
273

1,002
1,805
512
287
109
44
6
314
Total current liabilities 4,148 4,079
Non-current liabilities
Trade and other payables
Revenue in advance
Interest-bearing liabilities
Lease liabilities
Derivative financial liabilities
Provisions
Deferred taxation
Other liabilities

2.3

23
220
1,029
1,360
145
248
100
37

10
222
765
1 , 2 74
61
243
112
37
Total non-current liabilities 3,162 2,724
Total liabilities 7, 310 6,803
Net assets 1,825 1,928
Equity
Share capital
Reserves
2.4
2.5
3,304
(1,479)
3,346
(1,418)
Total equity 1,825 1,928

Dame Therese Walsh
Chair
For and on behalf of the Board, 26 February 2026
Alison Gerry
Director
Consolidated Statement of Financial Position
As at 31 December 2025

Air New Zealand Interim Report 2026
Air New Zealand Group21Air New Zealand Group20
* Relates to gains/losses on rollover of foreign exchange contracts that hedge exposures in other financial periods.
** December 2024 results have been restated (refer to Note 1 for further details).
The accompanying accounting policies and notes form part of these condensed consolidated interim financial statements.

NOTES
2025
UNAUDITED
$M
2024
UNAUDITED
$M
Cash flows from operating activities
Receipts from customers
Receipts from suppliers
Payments to suppliers and employees
Income tax paid
Interest paid
Interest received

3,325
-
(3,081)
-
(66)
35

3,248
39
(2,844)
(1)
(80)
62
Net cash flow from operating activities 213 424
Cash flows (used in)/from investing activities
Disposal of property, plant and equipment, intangibles and assets held for sale
Acquisition of property, plant and equipment, right of use assets and intangibles
Interest-bearing assets
2.6

-
(693)
125

193
(297)
293
Net cash flow (used in)/from investing activities(568)189
Cash flows from/(used in) financing activities
Cash paid on acquisition of own shares
Interest-bearing liabilities drawdowns
Rollover of foreign exchange contracts*
Equity settlements of staff share award obligations
Interest-bearing liabilities payments
Lease liabilities payments
Dividends on Ordinary Shares
2.4
2.3
2.4
6


(43)
338
29
(2)
(99)
(169)
(41)


-
-
(14)
(2)
(76)
(207)
(51)
Net cash flow from/(used in) financing activities13 (350)
(Decrease)/increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
(342)
1,436
263
1,279
Cash and cash equivalents at the end of the period 1,094 1,542
R E S TAT E D * *
Reconciliation of net (loss)/profit attributable to shareholders to net cash flows
from operating activities:
Net (loss)/profit attributable to shareholders
Plus/(less) non-cash items:
Depreciation and amortisation
Net loss on disposal of property, plant and equipment, intangibles and assets
held for sale
Share of earnings of associates
Movements on fuel derivatives
Foreign exchange losses/(gains)
Other non-cash items

2.1

(40)
373
4
(20)
1
28
4

98
364
1
(15)
(3)
(7)
4
Net working capital movements:
Assets
Revenue in advance
Liabilities
350
(119)
(12)
(6)
442
(35)
(96)
113
(137) (18)
Net cash flow from operating activities 213 424
Consolidated Statement of Cash Flows
For the six months ended 31 December
1. Corporate information
Reporting entity
The condensed consolidated interim financial statements (‘interim financial statements’) presented are for the parent company
Air New Zealand Limited (‘the Company’) and its subsidiaries (together referred to as ‘the Group’ or ‘Air New Zealand’), and the Group's
interests in associates.
Air New Zealand is a profit-oriented entity that is domiciled in New Zealand. The Company is registered under the Companies Act 1993
and listed on the New Zealand Stock Exchange (NZX) and Australian Securities Exchange (ASX) and has bonds listed on the NZX debt
market. The Company is an FMC Reporting Entity under the Financial Markets Conduct Act 2013.
Air New Zealand’s primary business is the transportation of passengers and cargo on scheduled airline services.
Basis of preparation
The interim financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice
(‘NZ GAAP’) as it applies to the interim period. They comply with NZ IAS 34: Interim Financial Reporting and IAS 34: Interim Financial
Reporting, as appropriate for profit-oriented entities. Where necessary, certain comparative information has been updated to conform
with the current year’s presentation.
The interim financial statements are presented in New Zealand Dollars ($ or NZD), which is Air New Zealand’s functional currency, and
rounded to the nearest million, except where otherwise stated.
Interim financial statements do not include all of the information and disclosures required in annual financial statements and should be
read in conjunction with the annual financial statements of the Group for the year ended 30 June 2025.
The interim financial statements have not been audited. They have been subject to review by the auditor pursuant to NZ SRE 2410
(Revised) Review of Financial Statements Performed by the Independent Auditor of the Entity, issued by the External Reporting Board.
These interim financial statements were approved by the Board of Directors on 26 February 2026.
Restatement of comparative balances
Air New Zealand identified certain accounting adjustments required in the Group’s historical consolidated financial statements for
the six-month period ended 31 December 2024 and the year ended 30 June 2025. The adjustments originated from an omission in
the maintenance provisioning process relating to leased aircraft assets that resulted in the related provisions and corresponding
maintenance costs not being reflected in the relevant accounting periods. The adjustments had no cash impact in the respective periods.
The following tables summarise the impacts on the comparative balances in these interim financial statements:
a) Statement of Financial Position
AS AT 30 JUNE 2025
AS REPORTED
$M
ADJUSTMENT
$M
A S R E S TAT E D
$M
Non-current liabilities
Provisions
Deferred taxation

218
119

25
(7)

243
112
Total non-current liabilities2,706182 ,724
Total liabilities6,78518 6,803
Total net assets1,946(18) 1,928
Reserves

(1,400)

(18)

(1,418)
Total equity1,946(18)1,928
Notes to the Interim Financial Statements
For the six months ended 31 December 2025

Air New Zealand Interim Report 2026
Air New Zealand Group23Air New Zealand Group22
Notes to the Interim Financial Statements (continued)
For the six months ended 31 December 2025
1. Corporate information (continued)
b) Statement of Financial Performance
FOR THE SIX MONTHS ENDED 31 DECEMBER 2024
AS REPORTED
$M
ADJUSTMENT
$M
A S R E S TAT E D
$M
Operating expenditure
Maintenance

(2 74)

(11)

(285)
(2,875)(11)(2,886)
Operating earnings (excluding items below)528(11)517
Earnings before finance costs, associates and taxation164(11)153
Earnings before taxation
Taxation expense
155
(49)
(11)
3
144
(46)
Net profit attributable to shareholders of parent company106(8)98
Per share information
Basic and diluted earnings per share (cents)

3.1

(0.2)

2.9
c) Statement of Comprehensive Income
FOR THE SIX MONTHS ENDED 31 DECEMBER 2024
AS REPORTED
$M
ADJUSTMENT
$M
A S R E S TAT E D
$M
Net profit for the period106(8)98
Total comprehensive income for the period, attributable to shareholders
of the parent company

90

(8)

82
d) Statement of Changes in Equity
FOR THE SIX MONTHS ENDED 31 DECEMBER 2024
AS REPORTED
$M
ADJUSTMENT
$M
A S R E S TAT E D
$M
General reserves:
Net profit for the period

106

(8)

98
Total comprehensive income for the period106(8)98
Balance as at 31 December 2024(1,300)(8)(1,308)
Balance as at 1 July 2025(1,323)(18)(1,341)
Total Equity:
Net profit for the period106(8)98
Total comprehensive income for the period90(8)82
Balance as at 31 December 20242,050(8)2,042
Balance as at 1 July 20251,946(18)1,928
There was no impact on the consolidated Statement of Cash Flows resulting from the restatement.
Critical accounting judgements and key sources of estimation uncertainty
The estimates and assumptions applied in these interim financial statements are consistent with those applied in the annual financial
statements for the year ended 30 June 2025.
Material accounting policy information
The accounting policies and computation methods used in the preparation of the interim financial statements are consistent with those
used in the annual financial statements for the year ended 30 June 2025.
New accounting standards, amendments and interpretations adopted during the period
There were no new accounting standards, interpretations or amendments that had a material impact on these interim financial statements.
New and revised NZ IFRSs, narrow scope amendments to NZ IFRSs and IFRS Interpretations not yet effective
Certain pronouncements have been issued by the IASB that are mandatory for accounting periods beginning on or after 1 January 2026.
Management is still evaluating and does not expect any such pronouncements to have a significant impact upon adoption, other than on
the presentation of the financial statements.
2. General disclosures
2.1. Interest in other entities
The Group has a 49% interest in the Christchurch Engine Centre (‘CEC’) and a 21% interest in Drylandcarbon One Partnership LLC, which
are recognised as investments in associates. The Group's share of equity accounted earnings from the CEC for the six months to 31
December 2025 was $20 million (six months to 31 December 2024: $15 million).
2.2. Interest-bearing assets
Interest-bearing assets are measured at amortised cost, using the effective interest method, less any impairment. The fair value of
interest-bearing assets as at 31 December 2025 was $224 million (30 June 2025: $341 million). Interest-bearing assets are subject to
fixed and floating interest rates. Fixed interest rates in the six months to 31 December 2025 ranged from 2.4% per annum to 4.6% per
annum (six months to 31 December 2024: 3.1% per annum to 6.5% per annum).
2.3. Interest-bearing liabilities
A S AT
31 DEC 2025
UNAUDITED
$M
30 JUN 2025
AUDITED
$M
Current
Secured borrowings
Secured borrowings*


171


189
Medium-term notes
AUD notes issued 25 May 2022
Tranche 1: 5.7% 4-year fixed-rate notes due 25 May 2026 (AUD300 million)

344 323
515512
Non-current
Secured borrowings
Secured borrowings*


316


390
Medium-term notes
AUD notes issued 25 May 2022
Tranche 2: 6.5% 7-year fixed-rate notes due 25 May 2029 (AUD250 million)
AUD notes issued 30 September 2025
5.179% 7-year fixed-rate notes due 30 September 2032 (AUD300 million)**

264
344
270
-
Unsecured bonds
NZD100 million bonds issued 27 October 2022
6.61% 5.5-year unsecured, unsubordinated fixed-rate bonds due 27 April 2028


105


105
1,029765
At carrying amount1,5441,277
At fair value 1,575 1,305
* Secured borrowings relate to specific financing of aircraft and engines and are secured over aircraft assets and subject to both fixed and floating interest rates.
Fixed interest rates on secured borrowings were 1.0% per annum in the six months to 31 December 2025 (six months to 31 December 2024: 1.0% per annum).
** On 30 September 2025, Air New Zealand completed an AUD300 million senior unsecured notes issuance.
2.4. Share capital
On 20 February 2025 the Board of Directors approved a 12-month share buyback programme of up to $100 million, which commenced
in March 2025. The buyback programme included both on-market and off-market components. The on-market buyback component
was acquired on the New Zealand Stock Exchange (NZX) and Australian Securities Exchange (ASX) and an off-market buyback
component was undertaken following any on-market acquisition, whereby Air New Zealand acquired a corresponding number of shares
held by the Crown in order to maintain the Crown’s shareholding. As at 31 December 2025, 134,902,189 shares ($81 million) had been
acquired under the programme, with 73,431,317 shares ($43 million) acquired in the six months to 31 December 2025. Upon purchase
the shares were cancelled.
During the six months ended 31 December 2025 the Group funded the on-market purchase of 3,571,250 shares for $2 million (six months
ended 31 December 2024: 4,558,097 shares for $2 million). The shares were used to settle obligations under staff share awards and
long-term incentive schemes. The total cost of the purchase including transaction costs has been deducted from ‘Share capital’.
2.5. Hedge reserves
As at 31 December 2025, $29 million of losses (30 June 2025: $47 million of losses) were held in the cash flow hedge reserve and
$22 million of losses (30 June 2025: $21 million of losses) in the costs of hedging reserve. These reserves are combined within the
Statement of Changes in Equity as ‘Hedge reserves’.

Air New Zealand Interim Report 2026
Air New Zealand Group25Air New Zealand Group24
Notes to the Interim Financial Statements (continued)
For the six months ended 31 December 2025
2. General disclosures (continued)
2.6. Sale and leaseback transactions
During the six months ended 31 December 2024 four Airbus A320 aircraft were sold and leased back, with a gain on sale of $3 million
being recognised in the Statement of Financial Performance. Lease terms under the arrangement are six years with rights to extend at
fair market rentals. Air New Zealand recognised investing cash inflows of $193 million from the transaction.
2.7. Compensation received from manufacturers
Air New Zealand has entered into confidential agreements with several manufacturers to compensate for the impact of engine shortages
on the business. Compensation related to the agreements has been recognised in the Statement of Financial Performance within the
below lines:
FOR THE SIX MONTHS ENDED 31 DECEMBER


2025
UNAUDITED
$M
2024
UNAUDITED
$M
Other revenue and income
Fuel
Maintenance
Other expenses
Depreciation and amortisation
Finance costs
37
-
1
4
12
1
83
2
1
-
8
-
Total compensation received from manufacturers5594
3. Segmental information
Air New Zealand operates predominantly in one segment, its primary business being the transportation of passengers and cargo on an
integrated network of scheduled airline services to, from and within New Zealand. Resource allocation decisions across the network are
made to optimise the consolidated Group’s financial result.
FOR THE SIX MONTHS ENDED 31 DECEMBER


2025
UNAUDITED
$M
2024
UNAUDITED
$M
Analysis of revenue by geographical region of original sale
New Zealand
Australia and Pacific Islands
Asia, United Kingdom and Europe
Americas

2 ,123
446
462
413
2,153
413
449
388
Total operating revenue3,4443,403
The principal non-current assets of the Group are the aircraft fleet which is registered in New Zealand and employed across the
worldwide network. Accordingly, there is no reasonable basis for allocating the assets to geographical segments.
4. Commitments
Capital commitments


31 DEC 2025
UNAUDITED
$M
30 JUN 2025
AUDITED
$M
Aircraft and engines
Other property, plant and equipment and intangible assets
2,884
19
3,140
45
2,9033,185
Capital commitments include ten Boeing 787 aircraft (contractual delivery from the second half of the 2026 financial year through
to the 2029 financial year) and two Airbus A321neo aircraft (delivery in the 2027 financial year).
4. Commitments (continued)
Lease commitments


31 DEC 2025
UNAUDITED
$M
30 JUN 2025
AUDITED
$M
Aircraft 185 314
185314
Lease commitments at 31 December 2025 include two Airbus A321neo aircraft (delivery in the 2028 financial year).
5. Contingent liabilities
All significant legal disputes involving probable loss that can be reliably estimated have been provided for in the interim financial statements.
No other significant contingent liability claims are outstanding at balance sheet date.
Outstanding letters of credit and financial guarantees at 31 December 2025 totalled $73 million (30 June 2025: $65 million).
The Group has entered into a partnership agreement with Pratt & Whitney in relation to the Christchurch Engine Centre (‘CEC’), in which the
Group holds a 49% interest. By the nature of the agreement, joint and several liability exists between the two parties. Total liabilities of the
CEC as at 31 December 2025 were $320 million (30 June 2025: $212 million).
6. Dividends
No interim dividend was declared in respect of the 2026 financial year.
A final dividend in respect of the 2025 financial year of 1.25 cents per ordinary share was paid on 25 September 2025. No imputation credits
were attached and no supplementary dividends paid to non-resident shareholders.
An interim dividend in respect of the 2025 financial year of 1.25 cents per ordinary share was paid on 19 March 2025. No imputation credits
were attached and no supplementary dividends were paid to non-resident shareholders.
A final dividend in respect of the 2024 financial year of 1.5 cents per ordinary share was paid on 26 September 2024. No imputation credits
were attached and no supplementary dividends paid to non-resident shareholders.
The dividend reinvestment plan is currently suspended.

Air New Zealand Interim Report 2026
Air New Zealand Group27Air New Zealand Group26
The Auditor-General is the auditor of Air New Zealand Limited
('the Company’) and its subsidiaries (‘the Group’). The Auditor-
General has appointed me, Jason Stachurski, using the staff and
resources of Deloitte Limited, to carry out the review of the
condensed consolidated interim financial statements (‘interim
financial statements’) of the Group on his behalf.
CONCLUSION
We have reviewed the interim financial statements of the Group
on pages 16 to 25, which comprise the Consolidated Statement
of Financial Position as at 31 December 2025, and the
Consolidated Statement of Financial Performance, Consolidated
Statement of Comprehensive Income, Consolidated Statement
of Changes in Equity and Consolidated Statement of Cash Flows
for the six months ended on that date, and condensed notes to
the interim financial statements, including material accounting
policy information.
Based on our review, nothing has come to our attention that
causes us to believe that the interim financial statements of the
Group do not present fairly, in all material respects, the financial
position of the Group as at 31 December 2025, and its financial
performance and cash flows for the six months ended on that
date, in accordance with NZ IAS 34
Interim Financial Reporting
and IAS 34
Interim Financial Reporting.
BASIS FOR CONCLUSION
We conducted our review in accordance with NZ SRE 2410
(Revised)
Review of Financial Statements Performed by the
Independent Auditor of the Entity
(‘NZ SRE 2410 (Revised)’).
Our responsibilities are further described in the Auditor’s
Responsibilities for the Review of the Interim Financial
Statements section of our report.
We are independent of the Group in accordance with the
independence requirements of the Auditor-General’s Auditing
Standards as applicable to the audits and reviews of public
interest entities, which incorporate the independence
requirements of Professional and Ethical Standard 1 International
Code of Ethics for Assurance Practitioners issued by the New
Zealand Auditing and Assurance Standards Board.
In addition to this review and the audit of the Group’s annual
financial statements, we have carried out assurance services
relating to passenger facility charges, and greenhouse gas
emissions reported in the greenhouse gas emissions inventory
report and in the Climate Statement, and compliance with
student fee protection rules. We also provide services to
the Corporate Taxpayers Group for which Air New Zealand
is a member, along with a number of other organisations. In
addition to these engagements, principals and employees of our
firm deal with the Group on normal terms within the ordinary
course of trading activities of the Group. These engagements
and trading activities have not impaired our independence as
auditor of the Group.
Other than the audit and these engagements and trading
activities, we have no relationship with, or interests in, the Group.
DIRECTORS’ RESPONSIBILITIES FOR THE INTERIM
FINANCIAL STATEMENTS
The directors are responsible, on behalf of the Group, for the
preparation and fair presentation of these interim financial
statements in accordance with NZ IAS 34
Interim Financial
Reporting
and IAS 34 Interim Financial Reporting and for such
internal control as the Board of Directors determine is necessary
to enable the preparation and fair presentation of the interim
financial statements that are free from material misstatement,
whether due to fraud or error.
The directors are also responsible for the publication of the
interim financial statements, whether in printed or electronic form.
AUDITOR’S RESPONSIBILITIES FOR THE REVIEW OF THE
INTERIM FINANCIAL STATEMENTS
Our responsibility is to express a conclusion on the interim
financial statements based on our review. NZ SRE 2410 (Revised)
requires us to conclude whether anything has come to our
attention that causes us to believe that the interim financial
statements, taken as a whole, are not prepared, in all material
respects, in accordance with NZ IAS 34
Interim Financial
Reporting
and IAS 34 Interim Financial Reporting.
A review of the interim financial statements in accordance
with NZ SRE 2410 (Revised) is a limited assurance
engagement. We perform procedures, primarily consisting
of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical
and other review procedures. The procedures performed in
a review are substantially less than those performed in an
audit conducted in accordance with International Standards
on Auditing (New Zealand) and consequently does not enable
us to obtain assurance that we would become aware of
all significant matters that might be identified in an audit.
Accordingly, we do not express an audit opinion on these
interim financial statements.
Jason Stachurski
Partner
for Deloitte Limited
On behalf of the Auditor-General
26 February 2026
Auckland, New Zealand
Independent Auditor’s Review Report
to the Shareholders of Air New Zealand Limited
For the six months ended 31 December 2025
Shareholder Enquiries
Shareholder
Communication
Air New Zealand’s investor website
airnzinvestor.co.nz provides
shareholders with information on
monthly operating statistics, financial
results, stock exchange releases,
corporate governance, annual
meetings, investor presentations,
important dates and contact
details. Shareholders can also view
webcasts of key events from this
site. Shareholders who would like to
receive electronic news updates can
register online at: airnzinvestor.co.nz
or email Investor Relations directly
on: investor@airnz.co.nz
Share
Registrar
New Zealand
MUFG Pension & Market Services
(NZ) Limited
Level 7, PwC Tower
15 Customs Street West, Auckland,
New Zealand
PO Box 91976, Auckland 1142,
New Zealand
Phone: +64 9 375 5998
(investor enquiries)
Phone: +64 9 375 5999
Fax: +64 9 375 5990
Email: enquiries.nz@cm.mpms.
mufg.com
Investor
Relations
Private Bag 92007, Auckland 1142,
New Zealand
Phone: +64 9 336 2607
Email: investor@airnz.co.nz
Website: www.airnzinvestor.com

---

Results for announcement to the market
Name of issuerAir New Zealand Limited
Reporting Period6 months to 31 December 2025
Previous Reporting Period6 months to 31 December 2024
CurrencyNew Zealand dollars
Amount (000s)Percentage change
Revenue from continuing
operations
$3,444,0001.2%
Total Revenue$3,444,0001.2%
Net loss from continuing
operations
$(40,000)(140.8)%
Total net loss$(40,000)(140.8)%
Interim Dividend (NZ$)
Amount per Quoted Equity
Security
The Board has resolved not to declare a 2026 interim dividend
Imputed amount per Quoted
Equity Security
Not applicable
Record DateNot applicable
Dividend Payment DateNot applicable
Current PeriodPrior comparable period
Net tangible assets per
Quoted Equity Security
$0.52$0.57
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer to media release, Interim Report, Interim Financial
Statements and Results Presentation.
Authority for this announcement
Name of person authorised
to make this announcement
Jennifer Page, General Counsel and Company Secretary
Contact person for this
announcement
Jennifer Page, General Counsel and Company Secretary
Contact phone number+64 27 909 0691
Contact email address

Jennifer.P age@airnz.co.nz
D
ate of release through MAP26 February 2026
Unaudited interim financial statements accompany this announcement.

PRELIMINARY HALF YEAR REPORT ANNOUNCEMENT
AIR NEW ZEALAND LIMITED
Half Year Ended 31 December 2025 (referred to in this report as the “current half
year”)
1 Information prescribed by NZX
Refer to Results for announcement to the market
2 The following information, which may be presented in whatever way the Issuer considers is
the most clear and helpful to users, e.g., combined with the body of the announcement,
combined with notes to the financial statements, or set out separately.
(a) A Statement of Financial Performance
Refer to the interim financial statements
(b) A Statement of Financial Position
Refer to the interim financial statements
(c) A Statement of Cash Flows
Refer to the interim financial statements
(d) Details of individual and total dividends or distributions and dividend or distribution
payments, which:
i.have been declared, and
ii.relate to the period (in the case of ordinary dividends or ordinary dividends and
special dividends declared at the same time) or were declared within the period (in the
case of special dividends).
No interim dividend was declared in respect of the 2026 financial year.
An interim dividend in respect of the 2025 financial year of 1.25 cents per Ordinary Share was paid on
19 March 2025. No imputation credits were attached and supplementary dividends were not paid to
non-resident shareholders.
A final dividend in respect of the 2025 financial year of 1.25 cents per Ordinary Share was paid on 25
September 2025. No imputation credits were attached and supplementary dividends were not paid to
non-resident shareholders.
NZ Cents per
Share$NZm*
Distributions recognised
Final dividend for 2025 financial year on Ordinary Shares1.25 41
Distributions paid
Final dividend for 2025 financial year on Ordinary Shares1.25 41
(e) A Statement of Movements in Equity
Refer to the interim financial statements

(f) Net tangible assets per Quoted Equity Security with the comparative figure for the previous
corresponding half year period
(NZ Cents per Share)
Current
period
Comparative
period
Ordinary Shares5257
(g) Commentary on the results
(i) (ii)
Measurement
Current
period
Comparative
period
Basic and diluted earnings per shareNZ cents per share(1.2) 2.9
Returns to shareholders
(also see section (d) above)
Final dividend on Ordinary Shares$NZ’m41 51
(iii) Significant features of operating performance:
Refer to the media release
(iv) Discussion of trends in performance:
Refer to the media release
(v) The Issuer’s dividend policy
Refer to Air New Zealand website - https://www.airnewzealand.co.nz/dividend-history
(vi) Any other factors that have or are likely to affect the results, including those where the
effect could not be quantified:
Refer to the media release
(h) Audit of financial statements
The annoucement is based on unaudited interim financial statements. The interim financial
statements have been the subject of review by the external auditor, pursuant to NZ SRE 2410
(Revised) Review of Financial Statements Performed by the Independent Auditor of the Entity, issued
by the External Reporting Board.
Basis of preparation
The Group prepares financial statements in accordance with New Zealand Generally Accepted
Accounting Practice (‘NZ GAAP’) which consists of New Zealand equivalents to International
Financial
Reporting Standards (‘NZ IFRS’) and other applicable financial reporting standards as
appropriate for profit-oriented entities. The interim financial statements comply with NZ IAS 34:
Interim Financial Reporting and IAS 34: Interim Financial Reporting.
Accounting policies
Refer to Note 1 of the interim financial statements

Changes in accounting policies
Refer to Note 1 of the interim financial statements
Audit Review Report
A copy of the review report is included at the end of the interim financial statements
Additional information
Not applicable
This half year report was approved by the Board of Directors on 26 February 2026.
Dame Therese Walsh
Chair