Air New Zealand (AIR) Investor update summary

Strategic context and challenges

• Facing significant operational and financial pressures from engine issues, grounded aircraft, rising costs, and volatile fuel prices over recent years.

• Domestic demand has been weaker, and aviation system costs have continued to rise, impacting financial performance.

• The airline is transitioning from post-Covid and engine disruption recovery to a growth and transformation phase.

• External challenges include elevated and volatile fuel prices and a weak New Zealand economy.

• Strategic ambitions include becoming the world’s most respected airline and enriching New Zealand’s connectivity.

New strategy: Te Pae Hou / Strategy reset priorities

• Focuses on three priorities: Customer First, Targeted Growth, and Resilient/Future Fit, aiming to restore profitability and deliver strong shareholder returns.

• Customer First emphasizes reliability, punctuality, premium service, and targeted marketing to key customer segments, with improved on-time performance.

• Targeted Growth involves disciplined investment in profitable routes, capacity, and partnerships, especially in resilient markets.

• Resilient and Future Fit targets cost transformation, disciplined capital allocation, and a sustainable regional network, with $100m in annualized cost savings expected from FY27.

• Aircraft delivery schedules are being rephased to smooth capital expenditure, and grounded aircraft are returning to service ahead of expectations.

Operational and financial initiatives

• On-time performance improved to 80.9% YTD FY26, with May reaching 89.9% punctuality and cancellations below 1%.

• Domestic and international network growth is targeted, leveraging returning aircraft and new fleet deliveries.

• Loyalty program rebranded and expanded, supporting commercial performance and member engagement.

• Multi-year cost and productivity program identified NZD 100 million in annualized savings from FY27.

• Operational improvements include a new domestic schedule, 787-9 retrofits, and enhanced self-service and marketing platforms.