Kiwi Catch-up: September 2009

In this Month's Kiwi Catch-up:
Snap and Go competition closes soon – WIN flights or a Polaroid camera, Air New Zealand recognised in Condé Nast Awards, Air New Zealand outperforms airline industry in 2009, and SFO Lounge Change

Snap and Go competition closes soon – WIN flights or a Polaroid camera

We've had an overwhelming response to our photo competition in celebration in of the launch of our new trade website. But the good news is there is there's still time for you to enter and get in the draw for flights or a Polaroid camera. You can view all entries to-date and if you think you can do better upload your best holiday snap by the 11 September 2009.

Air New Zealand recognised in Condé Nast Awards

This week Air New Zealand was voted as the second best long-haul leisure airline by Condé Nast Traveller magazine readers, placing it alongside New Zealand’s ranking as second best destination in the world.

"This recognition by readers of one of the world's top magazines is a further reflection that the dedication and hard work of Air New Zealanders to deliver a uniquely kiwi experience is resonating around the globe," say Group General Manager International Airline Ed Sims.

The award follows on from Air New Zealand’s most recent accolade - the Preservation Award in the Condé Nast 2009 World Saver Awards for leading the way in exploring alternate fuel sources.

Air New Zealand outperforms airline industry in 2009

Air New Zealand recently announced normalised earnings* before taxation of $145 million for the year ended 30 June 2009, a decrease of 26% on the prior year. Despite deteriorating economic conditions, Air New Zealand's financial performance in the second half of the year improved dramatically against normalised earnings before taxation at the half year of NZD$26 million.

Operating revenue for the year was NZD$4.6 billion, down NZD$58 million or 1.2% on the same period last year, with passenger revenue down NZD$74 million on a 7.6% decrease in demand, as measured in revenue passenger kilometres.

"This result positions Air New Zealand as one of the top airline performers globally but it falls short of delivering shareholders an appropriate commercial return," says Chairman John Palmer.

"Air New Zealand's profitability against the backdrop of a global economic meltdown was underpinned by management's decision to move rapidly ahead of competitors to reduce capacity at the first signs of waning demand and an ability to continue to invest and innovate with confidence."

Air New Zealand Chief Executive Officer Rob Fyfe says the airline will continue to act quickly and decisively, with a strong emphasis on innovation, to remain ahead of competitors. "We will continue to invest in new products, technology and customer service, while keeping a strong focus on reducing costs and becoming even more efficient. No area of the business will be immune from change as we start to roll out exciting new developments in our domestic, Tasman and long haul airlines and capitalise on opportunities for our subsidiary businesses." Mr Fyfe says that while some certainty is provided by hedge positions relating to foreign exchange and fuel price, demand remains difficult to predict.

"Although there are some early indicators that the slump in travel demand may be showing signs of having bottomed out, it would be naïve to think that there won't be bumps on the road to economic recovery. Nevertheless, Air New Zealand is well positioned to move quickly to increase its share of the travel dollar in all markets we choose to operate in. Our ability to execute innovative marketing, continue to invest in our destinations and deliver a world-class and uniquely Kiwi experience stands us apart from the competition."

Key Highlights

• Normalised earnings* before taxation of $145 million
• Normalised earnings* after taxation of $118 million
• Operating revenue down 1.2% to $4.6 billion
• Passenger demand down 7.6%
• Net cash position $1.6 billion, up 22%
• Final dividend of 3.5 cents

SFO Lounge Change

Air New Zealand Business Premier passengers, Gold/Gold Elite and Koru Members flying out of SFO on NZ007 will have a different Lounge to use before their flight. Until last week passengers use the UA Lounge, however it has been decided to change to the EVA Air Lounge instead. The benefits of using the EVA Air Lounge are as follows:

• Air New Zealand passengers will have the Lounge to themselves as there are no EVA Air flights at this time.
• Normalised earnings* after taxation of $118 million
• The Lounge will be staffed by an Air NZ representative to deliver our Lounge services.
• Food and beverage will be available.

The Eva Air Lounge is located on level 3 of Terminal G.