Air New Zealand (AIR) Investor Day summary

Strategic direction and market positioning

• Focus on maintaining and growing domestic market share while targeting premium leisure travelers on long-haul routes, leveraging a diversified network and strong brand loyalty.

• Plans to increase premium cabin seats by 30% by 2030, introducing new products like Business Premier Luxe and Economy Skynest.

• Targeted 3%-4% annual capacity growth, with 2%-3% domestically and 3%-5% internationally, balancing capital-light growth and flexibility through fleet management.

• Strong alliances and codeshare agreements expand reach to 320 destinations, supporting capital deployment efficiency and customer choice.

• Ongoing investment in digital transformation, aiming to be a leading digital airline, with 93% of infrastructure cloud-based and advanced data analytics driving operational and customer experience improvements.

Financial guidance and transformation initiatives

• Medium-term ambition for 4%-6% annual revenue growth, with 3%-4% from capacity and 1%-2% from transformational initiatives such as premiumization, ancillary, and loyalty revenue.

• Targeting NZD 300 million-NZD 400 million (or $300–$400 million) in transformational/EBITDA benefits by 2028, including cost efficiencies, digitalization, and productivity improvements.

• Commitment to flat nominal CASK and declining real CASK over the next three years, despite inflation and rising aeronautical charges.

• Maintaining an investment-grade credit rating, strong liquidity (NZD 1.45 billion), and low leverage, with flexibility to return excess cash and manage capital prudently.

• Ordinary dividend payout ratio targeted at 40–70% of underlying NPAT, with buybacks considered for excess capital.

Loyalty, digital, and people strategy

• Loyalty program expected to deliver NZD 40 million-NZD 60 million (or $40–$60 million) incremental EBITDA by FY2028, driven by expanded partnerships, product innovation, and personalized offers.

• Digital investments of NZD 70 million annually support customer self-service, operational efficiency, and advanced retailing, with 1.6 million monthly app users and industry-leading contact center metrics.

• Strong focus on culture, talent retention, and union relationships, with employee engagement at 71% and turnover at 6.4%, supporting high customer satisfaction and operational stability.

• Cross-functional operating model and investment in well-being drive improved operational performance and customer satisfaction.

• Sustainability efforts include a 10% SAF target by 2030 and investments in new aircraft technologies, despite withdrawal from the science-based target due to external dependencies.