1

Overview

> Normalised earnings* before taxation of , up 30%

> Statutory earnings before taxation of , up 40%

> Statutory net profit after taxation of

> Operating revenue of

> Strong operating cash flow of

> Third consecutive year of earnings growth

* Normalised earnings represents Earnings stated in compliance with NZ IFRS

(Statutory Earnings) after excluding net gains and losses on derivatives that hedge

exposures in other financial periods. Refer to the supplementary slides for a

reconciliation to IFRS earnings.

2

Key drivers of result

> Passenger revenue to

> Short haul capacity growth of

> Yield improvements across the network of

> Increased labour cost includes restructuring and fleet transition costs of

> Decreased fuel cost due to more favourable hedging outcomes, fleet efficiencies and

slightly lower underlying prices

Passengers carried (‘000s) 13,719 13,411 2.3%

Available seat kilometres (ASKs) 33,396m 33,167m 0.7%

Revenue passenger kilometres (RPKs) 28,078m 27,733m 1.2%

Load factor 84.1% 83.6% 0.5 pts

Yield (cents per RPK) 13.7 13.6 1.0%

** Calculations based on numbers before rounding

* Excluding impact of foreign exchange 3

Strong operating cash flow

> Pretax operating cash flow

> Increased tax payments of

> Reflects quality of underlying earnings

> Underpins strong liquidity position

4

Changes in profitability

*Normalised earnings before taxation represents Earnings stated in compliance with NZ IFRS (Statutory Earnings) after excluding net gains and

losses on derivatives that hedge exposures in other financial periods. Refer to the supplementary slides for a reconciliation to IFRS earnings. 5

Domestic

> Continued strong performance with increased traffic and improving yields

> Capacity as new aircraft enter fleet

A320 now outnumbering B737-300 by , fleet transition complete by end of 2015

4 ATR72-600s now in service, with 5 more to come in the next 18 months

> New Domestic fare proposition offering well received by customers

* Calculations based on numbers before rounding

** Excluding the impact of foreign exchange, Domestic yield increased by 3.4%

Passengers carried (‘000s) 8,920 8,694 2.6%

Available seat kilometres (ASKs) 5,385m 5,108m 5.4%

Revenue passenger kilometres (RPKs) 4,370m 4,218m 3.6%

Load factor 81.1% 82.6% (1.5 pts)

Yield (cents per RPK) 27.9 27.2 2.8%**

6

Tasman & Pacific Islands

> Maintaining market leading position on the Tasman

> Capacity increases from up-gauge to larger aircraft

> Lower AUD impacting Australian derived revenue

* Calculations based on numbers before rounding

** Excluding the impact of foreign exchange, Tasman & Pacific Islands yield increased by 1.0%

Passengers carried (‘000s) 3,277 3,181 3.0%

Available seat kilometres (ASKs) 10,622m 10,277m 3.4%

Revenue passenger kilometres (RPKs) 8,858m 8,580m 3.3%

Load factor 83.4% 83.5% (0.1 pts)

Yield (cents per RPK) 11.7 12.0 (2.6%)**

7

International

> First of two additional leased B777-300ER aircraft now in service

> Some capacity reduction due to withdrawal of Hong Kong-London route

> Arrival of B787-9 and exit of B747-400

> Full year benefit of realigned long haul network

* Calculations based on numbers before rounding

** Excluding the impact of foreign exchange, International yield increased 3.5%

Passengers carried (‘000s) 1,522 1,536 (0.9%)

Available seat kilometres (ASKs) 17,389m 17,782m (2.2%)

Revenue passenger kilometres (RPKs) 14,850m 14,935m (0.6%)

Load factor 85.4% 84.0% 1.4 pts

Yield (cents per RPK) 10.7 10.6 0.9%**

8

Cargo

> Yields down in flat global market, offset by volume growth of

> Pursuing innovative solutions through development of global virtual network

> A key enabler for New Zealand’s exporters

9

Financial management

> Net cash on hand

> Gearing at

> Fully imputed final dividend of , resulting in an increase

in ordinary dividends for the year of

> Fully imputed special dividend of

> Moody’s investment grade credit rating, outlook stable

10

Virgin Australia update

> Equity investment increased to

> Air New Zealand Chief Executive Officer appointed to Board, 4 July 2014

> Alliance continuing to improve network proposition

> Ongoing cost benefits through operational synergies

11

Progress on strategic priorities

12

Exits of HK-London,

Auckland-Osaka

Singapore Airlines

alliance

New aircraft deliveries

(A320, B787, B777, ATR)

Airbus NEO order

Improving

sales capability

Lounge upgrades,

mobile technology

improvements

High performance

engagement &

leadership development

Simplification

initiatives

Improved performance

Network reach

Efficiencies

Economies of scale

Engaged customers

High performing team

Competitive cost base

+

+

+

+

+

+

=

>

>

>

>

>

>

>

Network capacity growth in FY14

> Capacity (ASKs) is expected to grow by during FY15

*Excluding the impact of exits from Hong Kong-London and Auckland-Osaka routes 13

Singapore Airlines alliance

> Full regulatory approval granted

> Recommence flying to Singapore from Auckland

> Will boost route capacity by around over time

> Expansive network available to customers

> Brings to life Pacific Rim growth focus

14

Aircraft capital expenditure

> Investment of in aircraft over the next 4 years

> Includes progress payments on aircraft

> Assumes USD/NZD =

> Excludes capitalised maintenance of approximately

and non-aircraft capital commitments

FY15 FY16 FY17 FY18 FY19

Boeing 787-9 2 3 2 2 -

Airbus A320 4 2 - - -

Airbus A320/A321 NEO - - - 3 6

ATR72-600 3 2 - - -

Boeing 777-300ER* 1 - - - -

* Subject to operating lease arrangements

$NZm

15

Customer

> Mobile app proving very popular with more than

> Mobile device sales channel growing significantly

> Upgraded inflight product offerings with B787-9 and refurbished B777-200

> Lounge upgrades progressing well

16

> Programme refresh completed

> Airpoints membership engagement year-on-year

highest in more than 5 years

> Non-air revenues year-on-year

> High Value Customer satisfaction levels at all time highs

> Significant insights project undertaken, providing single customer view

17

Loyalty

Continuous cost improvement

Cost per ASK* 11.00 11.22

Exclude:

Fuel (3.42) (3.63)

Foreign exchange gains 0.13 0.01

CASK (excl. fuel and foreign exchange gains) 7.71 7.60

> Current year includes of

transitional labour costs (0.13 cents per ASK)

> Fleet modernisation, fleet simplification and

scale economies from growth will continue

reducing our cost base in the future

> Objective to offset CPI increases on cost base

* Includes normalised earnings adjustment 18

Financial reporting update

> Virgin Australia investment will be equity accounted in FY15

> Air New Zealand an early adopter of NZ IFRS 9 Financial Instruments (2013)

Effective 1 July 2014

Better alignment of accounting with risk management strategies

Will reduce accounting ineffectiveness in respect of fuel hedge

relationships and remove earnings volatility in respect of the time

value of options and forward element of foreign currency

operating hedges

Normalised earnings disclosure likely to be discontinued in FY16

19

Outlook

> The coming year will see significant capacity growth as new fleet arrive.

> As we continue to deliver on our strategic priorities, and based on our

expectations of market demand and fuel prices at current levels, we expect

to improve on the 2014 result in the coming year. This outlook excludes

equity earnings from the Virgin Australia shareholding.

20

SUPPLEMENTARY SLIDES

21

Financial overview

Operating revenue $4,663m $4,615m $48m 1%

Normalised earnings *

before taxation$332m $255m $77m 30%

Statutory earnings

before taxation$357m $255m $102m 40%

Statutory net profit after

taxation$262m $181m $81m 45%

Operating cash flow $730m $750m ($20m) (3%)

Net cash position $1,234m $1,150m $84m 7%

Gearing 42.9% 39.3% n/a (3.6 pts)

Ordinary dividends

declared ^10 cps 8 cps 2 cps 25%

Special dividend

declared ^10 cps n/a n/a n/a

* Normalised earnings represents Earnings stated in compliance with NZ IFRS (Statutory Earnings) after excluding net gains and losses on derivatives

that hedge exposures in other financial periods. Refer to the supplementary slides for a reconciliation to IFRS earnings.

^ Fully imputed

22

Projected jet fleet

Boeing 777-300ER 7 7 7 7 7

Boeing 777-200ER 8 8 8 8 8

Boeing 787-9 3 6 8 10 10

Boeing 767-300 5 2 - - -

Airbus A320 26 28 28 23 17

Airbus NEO - - - 6 12

Boeing 737-300 2 - - - -

* Seat weighted

23

Foreign exchange hedging

> The first half of FY15 US dollar operating cash flow exposure is

approximately at an average NZD/USD rate of 0.8326.

> The FY15 US dollar operating cash flow exposure is at an

average NZD/USD rate of 0.8402.

24

Fuel hedging*

Brent swaps 175,000 104.44

WTI swaps 75,000 95.80

Brent collars 2,287,500 106.91 99.27

WTI collars 275,000 95.84 85.56

Sing Jet swaps 112,500 114.89

WTI swaps 175,000 94.74

Brent collars 1,512,500 107.82 99.38

WTI collars 200,000 94.28 85.63

> The first half of FY15 is

> The second half of FY15 is

* Fuel hedge position as at 15 August 201425

Normalised earnings

Earnings before taxation (per NZ IFRS) $357m $255m

Reverse net (gains) / losses on derivatives that hedge exposures in other financial periods:

Fuel derivatives ($22m) ($2m)

Foreign exchange derivatives ($3m) $2m

Normalised earnings* before taxation $332m $255m

*Normalised earnings represents Earnings stated in compliance with NZ IFRS (Statutory Earnings) after excluding net gains

and losses on derivatives that hedge exposures in other financial periods. Normalised earnings is a non-IFRS financial

performance measure that matches derivative gains or losses with the underlying hedged transaction, and represents the

underlying performance of the business for the relevant period. Normalised earnings is reported within the Group’s annual

financial statements and is subject to review by the Group’s external auditors.

26