Air New Zealand Limited (AIR) 2024年年度報告「ASX」.pdf

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1、Annual Report2024About this ReportContentsAt Air New Zealand,we are proud of our role in supporting New Zealanders to succeed and thrive at home and around the world.Since our first flight to Sydney in 1940,a nine-hour journey with just 10 passengers,Air New Zealand has connected millions of New Zea

2、landers and their products to the world.We have played a key role representing Aotearoa New Zealand on the global stage,with our authentic Kiwi service,operational excellence,and passion for innovation.In this report,we share the story of our year.Of the innovation and investment,the collaboration a

3、nd manaaki,and the commitment and professionalism of 11,700 Air New Zealanders.All made much more remarkable given the backdrop of operational and economic challenges that had a significant impact on our financial performance.We welcome your feedback on this report.Please send any comments or sugges

4、tions to investorairnz.co.nz.A digital version of this report,along with previous annual and interim reports is available at:airnewzealand.co.nz/financial-information.This report covers the financial year ended 30 June 2024 and is dated 29 August 2024.It has been approved by the Board and is signed

5、on behalf of the Air New Zealand Group by Dame Therese Walsh,Chair of the Board,and Greg Foran,Chief Executive Officer.In conjunction with the Air New Zealand 2024 Climate Statement,this document constitutes the 2024 Annual Report to shareholders of Air New Zealand Limited.Dame Therese WalshChairGre

6、g Foran Chief Executive OfficerAbout this Report 01Our Purpose 02 Air New Zealand at a Glance 04Performance Highlights 06Letter from the Chair and Chief Executive Officer 07Business Highlights 12Our Strategy 15Our Financial Performance 18Financial Commentary 19Financial Summary 22Change in Profitabi

7、lity 23Our Sustainability Update 24Our Corporate Governance Statement 35Employee Remuneration 51Remuneration Report 52Interests Register 55Directors Interests in Air New Zealand Securities 56Indemnities and Insurance 56Subsidiary Companies 56Other Disclosures 57Operating Fleet Statistics 58Securitie

8、s Statistics 59General Information 61Our Consolidated Financial Statements 62Directors Statement 64 Statement of Financial Performance 65Statement of Comprehensive Income 66Statement of Changes In Equity 67Statement of Financial Position 68Statement of Cash Flows 69Statement of Accounting Policies 7

9、0Notes to the Financial Statements 73Independent Auditors Report 108Five Year Statistical Review 112Shareholder Directory 116AIR NEW ZEALANDANNUAL REPORT 202401AIR NEW ZEALAND GROUPOur guiding purpose is to enrich our country by connecting New Zealanders to each other and New Zealand to the world.Th

10、is is an idea thats been at the heart of our airline since the very beginning.Embedded in this purpose is a promise to our people,our customers and our community.That promise is Manaaki taking care further than any other airline.This idea of care is encapsulated in our values and is implicit in ever

11、ything we do from taking care of each other,our customers,our environment and the communities we serve.Our PurposeAIR NEW ZEALANDANNUAL REPORT 20240302AIR NEW ZEALAND GROUPTO BE UPDATEDAir New Zealand at a GlanceAt Air New Zealand we provide world-class air passenger and cargo services to,from and w

12、ithin New Zealand.We operate one of the most comprehensive domestic and regional networks in the world,flying to 20 destinations across New Zealand,offering more than 400 flights every day.Internationally,our strategic focus and competitive advantage lie within the Pacific Rim where our network reac

13、h extends from New Zealand into Australia,the Pacific Islands,Asia and North America.Alongside key global alliance partners,including United Airlines,Singapore Airlines,Cathay Pacific and Air China,we connect New Zealand to more than 600 destinations worldwide.Our network serves more than 16 million

14、 passengers a year and is operated by a fleet of 110 aircraft and around 11,700 employees globally.New YorkChicago*VancouverSan FranciscoLos AngelesHoustonHonoluluTahitiRarotongaSamoaNiueTongaFijiNew Caledonia*CairnsSunshine CoastBrisbaneGold CoastSydneyAdelaideMelbourneHobartPerthQueenstownChristch

15、urchWellingtonAucklandDenpasarSingaporeHong KongTaipeiShanghaiSeoulTokyo*These routes are temporarily suspended.KerikeriWhangreiTaurangaHamiltonRotoruaTaupGisborneHawkes BayPalmerston NorthNew PlymouthNelsonBlenheimHokitikaTimaruDunedinInvercargillQueenstownChristchurchWellingtonAucklandAIR NEW ZEAL

16、ANDANNUAL REPORT 20240504AIR NEW ZEALAND GROUPAIR NEW ZEALANDANNUAL REPORT 2024Performance Highlights$6.8b Operating revenueUp 7%on last year$146m Net profit after taxationDown 65%on last year$225m Increase in non-fuel operating costs due to inflationUp 6%on last year$120m DividendsDeclared for the

17、2024 financial year0.8x Net Debt to EBITDACompared to a target range of 1.5x to 2.5x$222m Earnings before taxationDown from$574 million,as the cost environment and aircraft availability challenges constrained the result$100m Adverse impact to earningsDue to aircraft availability challenges,net of co

18、mpensation$1.5bLiquidityWith a target range of$1.2 billion to$1.5 billionDame Therese Walsh ChairGreg Foran Chief Executive OfficerLetter from the Chair and Chief Executive OfficerKia ora koutouAcross the 2024 financial year,our team continued to demonstrate their ability to adapt and innovate,deliv

19、ering results for our customers in an ever-changing environment.Despite the near-term challenges,Air New Zealand rolled out new tools and digital enhancements,greater self-service capability and reinvigorated onboard offerings,never losing sight of what we need to do to be a future-fit airline.Follo

20、wing an exceptional financial performance last year,when pent-up levels of demand and industry-wide capacity constraints drove one of the strongest results in our history,we knew that 2024 would be different.And while the airline reported a solid result for the first half of the 2024 financial year,

21、the second half proved increasingly challenging as the impact of operating and economic headwinds became more pronounced.Across the second half,the revenue environment tightened further as the cost-of-living crisis and weaker New Zealand economy started to noticeably impact demand.At the same time,s

22、ofter corporate and government spend on domestic travel compounded pressure on yields.Intense international competition on our North American network,which saw market capacity increase almost 50 percent for the year,and the cumulative effect of significant cost inflation,further impacted our financi

23、al performance.These issues are each substantial in their own right but have been exacerbated by an unfortunate trifecta of challenges that we currently face with aircraft availability.The accelerated maintenance schedule for Pratt&Whitney PW1100 engines worldwide 07AIR NEW ZEALAND GROUPAIR NEW ZEAL

24、ANDANNUAL REPORT 202406has meant that up to six of our newest and most efficient Airbus neo aircraft have been out of service at times,and we expect this to persist to some extent across the next 12 to 24 months.Ongoing maintenance requirements on the Trent 1000 engines that power our existing Boein

25、g 787 fleet and reduced levels of spares in the market have meant that up to three of our Dreamliners are also on the ground at times.On top of this,the global aviation supply chain continues to struggle,and we acknowledge there may be some risk of further delivery delays of new 787 Dreamliners from

26、 Boeing.While these are not safety issues,they have resulted in more aircraft than anticipated on the ground,and large-scale operational inefficiencies.We know these challenges are not unique to Air New Zealand.Supply chain and aircraft delivery delays,a lack of engine spares,growing costs and a sho

27、rtage of key workgroups like aircraft engineers are major issues facing many airlines across the global aviation industry.While we expect these issues to largely resolve within the next two years,they have had a significant impact on our performance this financial year.We have announced earnings bef

28、ore taxation of$222 million for the 2024 financial year and estimate the result would have been around$100 million higher,net of compensation,had we been able to operate our aircraft and network schedule as intended.We are incredibly proud of our team who quickly took action to limit the impact of t

29、hese challenges on our customers.We leased three additional aircraft,no easy feat in a market where many carriers globally are searching for aircraft spares.We retrained pilots and crew to align with aircraft availability and made decisions to optimise routes,so we could make the best use of our con

30、strained fleet.We also added resource to the contact centre to support customers as we made necessary adjustments to our schedule and rapidly reestablished the wet lease arrangement with WAMOS.These temporary actions came at a cost,but we know it was the right thing to do for our customers.Despite t

31、he considerable distractions in the current environment,as a business we remain focused on the big picture controlling what we can,relentlessly focusing on our customers and our people,and investing for the future.Our Kia Mau strategy continues to serve us well,driving improvements in our core capab

32、ilities,and we are proud of what has been achieved for our customers and our people so far.Across the year we rolled out new tools in our digital app,such as the baggage tracking feature,and multiple booking management enhancements which place more self-service capability in our customers hands.Our

33、recently launched Ops Collab platform,which enables instant communication between cabin crew,ground staff and operations Letter from the Chair and Chief Executive Officer(continued)control has been a gamechanger for improving our boarding and aircraft turn times.We redesigned check-in areas at Auckl

34、and Domestic and International airports,minimising queues and providing a better customer experience.We also rolled out a reinvigorated Seats to Suit product on our international short-haul network to give customers greater flexibility and to ensure we continue to provide good value across all ticke

35、t price points.In the coming months we have some further exciting developments to share.We will be trialling digital bag tags,which will enable customers to track their baggage on a real time basis every step of their travel journey.We recently went live with our new loyalty platform iFly,which will

36、 form the foundation of the loyalty scheme of the future.Our new Auckland International Koru lounge design will be finalised,and we are excited to unveil a new world-class lounge offering to customers within the next two years.As aircraft availability issues start to resolve,we are also turning our

37、minds to the network opportunities and potential new routes we may look to serve in the medium to longer term.We know the last 12 months have been difficult and that our ability to effectively navigate these challenges is due to our incredible people,who are always willing to go the extra mile to de

38、liver for our customers.We want to acknowledge and thank the 11,700 strong whnau of Air New Zealanders for their hard work and dedication.Financial resultsTurning to the results,Air New Zealand has delivered earnings before taxation of$222 million for the year.This was an expected decline on the pri

39、or year,which benefited from significant pent-up demand as New Zealands borders reopened.Passenger revenue increased to$5.9 billion,driven largely by a 23 percent increase in capacity,primarily across 1.Refers to Full Time Equivalent employees.AIR NEW ZEALANDANNUAL REPORT 20240809AIR NEW ZEALAND GRO

40、UPthe international long-haul network.Softness in domestic corporate and government demand was experienced from September 2023 and persisted across the remainder of the financial year.Also included within passenger revenue is$90 million of credit breakage for unused customer travel credits that were

41、 considered highly unlikely to be redeemed.Operating costs,including fuel,grew 15 percent driven primarily by increased long-haul flying.US dollar fuel prices declined seven percent,however increased levels of flying and unfavourable foreign exchange movements saw overall fuel costs grow to$1.7 bill

42、ion.Cost inflation continues to challenge our productivity efforts,with approximately$225 million of additional non-fuel operating cost headwinds.This represents an uplift of six percent for the year and brings the cumulative impact of inflation across the past five years to around 20 to 25 percent.

43、While growth in the network has provided some scale benefits in parts of the cost base,productivity remains below the levels achieved pre-Covid as the airline carries extra costs to help manage ongoing disruptions in the supply chain.Capital Management and Dividends Management has made good progress

44、 this year to move the airline closer to our Capital Management targets.This includes the resumption of ordinary dividends,voluntary early repayment of debt and an increase in unencumbered aircraft.Letter from the Chair and Chief Executive Officer(continued)Liquidity as at 30 June 2024 was$1.5 billi

45、on and net debt to EBITDA was 0.8x.In November 2023,Moodys upgraded the airlines investment grade credit rating from Baa2 to Baa1,reflecting the strength of the airlines recovery and reaffirming Air New Zealands position as one of the highest credit-rated airlines in the world.Maintaining our invest

46、ment grade rating provides us with continued access to capital at competitive rates,giving us flexibility and resiliency.On the basis of our ongoing balance sheet strength and the result,the Board is pleased to declare an unimputed final ordinary dividend of 1.5 cents per share,which equates to a pa

47、yout ratio of 69 percent of the prior 12 months underlying net profit after taxation.This takes the total dividend to 3.5 cents per share for the year.SustainabilityIn July 2024,after careful consideration,we made the difficult decision to remove our 2030 science-based carbon intensity reduction tar

48、get and to withdraw from the Science Based Targets initiative(SBTi).Many of the levers needed to achieve the target,including the availability of new aircraft,the affordability and availability of alternative jet fuels,and global and domestic regulatory and policy support,are outside the airlines di

49、rect control and have become increasingly challenging.Despite withdrawing from the initiative,the workstreams we set up to help us achieve the target continue,including trialing next generation aircraft and ongoing efforts to find cost effective sources of alternative jet fuels.Work has also begun t

50、o consider a new near-term carbon emissions reduction target that better reflects the challenges we face with respect to aircraft and alternative jet fuel availability.OutlookWe have outlined a number of trading conditions that have significantly impacted our result for the second half of the 2024 f

51、inancial year,in particular the tougher economic backdrop in New Zealand driving softness in demand,the cumulative impact of inflationary cost pressures,the impacts of aircraft availability issues and significant competition on our US network.We expect these trading conditions to remain similar thro

52、ugh the first half of the 2025 financial year.Given the ongoing uncertainty,the airline is not providing guidance at this time.We remain focused on operating effectively through the current economic and operating conditions.Our balance sheet is robust,with capacity to prudently manage these headwind

53、s while investing sensibly for the future.We believe in the strength of our plan and our team and are excited about the opportunities ahead as we move out of this current cycle.The actions we have taken across the year to deliver value for our customers will set us up well for the future,and you can

54、 expect both the Board and management to continue to focus on improving returns,while ensuring we stay true to our culture and our commitment to provide a world-class travel experience for our customers.On behalf of the Board and management,we want to thank our shareholders for your continued suppor

55、t.Ng mihi nui.Letter from the Chair and Chief Executive Officer(continued)Dame Therese Walsh29 August 2024Greg Foran29 August 2024AIR NEW ZEALAND GROUP11AIR NEW ZEALANDANNUAL REPORT 202410Business HighlightsCustomer satisfaction Now back at pre-Covid levelsProud of our peopleAs they focus on creatin

56、g a seamless,quality customer experienceDigital innovation Making it easier for our team to work collaboratively and enhancing customer serviceRecord growth in Airpoints membersUp 14%to 4.6 million membersInvesting in our futureWith new fleet,aircraft hangars,digital tools and battery electric and h

57、ybrid ground service equipment(GSE)Improved inflight experienceWith new menus,snack selections and inflight entertainmentReinvigorated Seats to SuitProviding greater customer flexibility and valueRenewed Premium Check-in experienceWith upgraded kiosk technology and improved customer flow in a modern

58、,contemporary spaceLeaning into our decarbonisation journeyWith our first commitment to a next generation all-electric aircraft,and target for Sustainable Aviation Fuel(SAF)2 uplift of 10%of our total fuel volumes by 2030Elevating inflight diningThis year we kicked off a culinary journey to elevate

59、our onboard dining experience.Our goal?To redefine inflight dining and showcase the very best of New Zealands culinary scene to our passengers.Our adventure started with the Great Kiwi Snack Off a nationwide search for the tastiest onboard snacks.Over 400 Kiwi businesses answered the call,flooding u

60、s with delicious options.A panel of“snackperts”chosen from thousands of applicants tasted their way through the submissions,ensuring only the most exceptional snacks made it onboard.Chocolate dipped pretzels and almonds,tangy lemon meringue coated popcorn,and crunchy dried cheese are just a few of t

61、he delicious treats that are now tempting our passengers.Our journey continued with the launch of“A Taste of Aotearoa,”our premium inflight dining menu.This is a testament to the exceptional produce and ingredients grown here in New Zealand.From our exclusively New Zealand wine list to our carefully

62、 curated beverage menu showcasing local spirits and craft beer,every bite and sip is a celebration of Kiwi flavours.The result a refreshed inflight dining experience that celebrates New Zealands culinary heritage and delights passengers.By showcasing the best of New Zealands food and beverage offeri

63、ngs,we aim to provide our passengers with an unforgettable inflight experience.Homegrown app streamlining airport operationsWith more than 16 million passengers arriving and leaving on our flights each year,efficient communication is the key to ensuring a seamless and smooth operation.The launch of

64、Ops Collab,a new homegrown app,has revolutionised the way our airport teams connect with each other.Our people can now easily and instantly communicate via the app on their mobile device,co-ordinating plane arrival and departures,with passenger boarding and disembarking.The app eliminates the need f

65、or lengthy,multi-step communication processes and ensures everyone is on the same page.Ops Collab is proving to be a game-changer for our people,reducing boarding times,improving customer service,and enhancing overall efficiency.By further leveraging the power of digital technology,weve transformed

66、the way our teams work,resulting in a more efficient and customer-focused operation.2.Sustainable aviation fuel is a form of alternative jet fuel referred to as SAF by the United Nations,national governments and the aviation industry.For further information on the definition of SAF,please refer to p

67、ages 27 and 49 of Air New Zealands 2024 Climate Statement.AIR NEW ZEALANDANNUAL REPORT 202412AIR NEW ZEALAND GROUP13Our StrategyA new check-in experienceThe transformation of our check-in areas at Auckland International Airport is part of the airlines ongoing commitment to improving our customer exp

68、erience.With upgraded kiosk technology,more options to self-serve and improved flow,passengers can now enjoy a smoother check-in process.Not only that,a new one-click check-in option on the Air New Zealand app allows customers to complete as much of the check-in process as possible before leaving ho

69、me.This not only saves time but also creates a more relaxed and enjoyable start to the travel experience.The premium check-in area at Auckland International Airport has also undergone a complete redesign,creating a welcoming and sophisticated space that reflects the unique spirit of Aotearoa New Zea

70、land.With natural elements like a living wall and a digital wall showcasing bespoke art and music,the area now feels larger and more inviting.The refreshed check-in is the beginning of a new look and feel for Air New Zealands physical spaces,expressing the unique diversity,vibrancy,and personality o

71、f our country.Business Highlights(continued)15AIR NEW ZEALAND GROUPAIR NEW ZEALANDANNUAL REPORT 202414Our StrategyProfit DriversSelect 2024 AchievementsLooking ahead,opportunities on our strategic roadmap include:Grow Domestic New and enhanced self-service offerings via the app Investments in new an

72、d efficient ground service equipment Purchase of two new domestic A321neos Offering our customers new and enhanced products Driving lower costs for our customers through adding larger and more efficient fleet across the network Growing our regional connectivity with additional services on high deman

73、d routes Improved utilisation of our network schedule and aircraft to provide customers with more flying choicesElevate International Reinvigorated Seats to Suit offering Redesigned premium check-in at Auckland Airport Renewed the Singapore Airlines alliance for a further 5 years Refreshed the Boein

74、g 777 interiors Enhanced our inflight entertainment and onboard food offerings Retrofitting our 14 existing Boeing 787 Dreamliners with new interiors and an increased number of premium cabin seats Delivery of new GE-powered Boeing 787 Dreamliners and A321neos Offering new and improved products and s

75、ervices for our customers Growing existing and new international markets with new fleet and in conjunction with alliance partners Upgrade of our cargo management systemLift Loyalty Retail partnership ecosystem grew by four partners Growth in volume of products in store now at 13,000 items Finalise p

76、reparation for launch of iFly platform Investing further in the member experience,including enhanced benefits and increased personalisation of offers and services Growing our portfolio of Airpoints proprietary offerings to customers such as the Airpoints Store Enhancing the value customers realise t

77、hrough paying for flights with Airpoints DollarsEnablersSelect 2024 AchievementsLooking ahead,opportunities on our strategic roadmap include:Brilliant Basics Launched a series of digital tools to support operational and customer service excellence,such as a new flight planning system and workforce c

78、ollaboration tools to improve on-time performance Investment in core airport and engineering infrastructure Further use of live chat channels for customers Improved customer options in the event of flight disruptions Optimising aircraft maintenance to improve schedule reliability Upgrade of airport

79、and engineering infrastructureSerious about Sustainability Purchase of first battery-powered,all-electric aircraft Procured 0.4 percent of annual fuel consumption from SAF,with a view to uplift 10 percent of 2030 fuel volumes Induction of the all-electric Alia aircraft,to carry select cargo on the D

80、omestic network Increase pricing and volume certainty for future SAF volumes through appropriate offtake agreements Improved operational procedures to reduce fuel consumption across fleetsDigital Dexterity Multiyear upgrade of digital platforms and tooling Over 50 artificial intelligence proof of co

81、ncept trials undertaken Continued transition to modern and scalable digital infrastructure Investment in further artificial intelligence applicationsPrioritising People and Safety 13 union agreements ratified New Mangpare pilot cadetship launched Winning the Safeguard New Zealand Workplace Health&Sa

82、fety Award Increased investment in learning and training across the airline Expand Mangpare pilot cadetship programme Building Air New Zealands culture of health and wellbeing Continued investment in our agile and lean operating model,including in operational areasKia MauThe strategy that guides us

83、is called Kia Mau,which means“get ready and remain steadfast”.The aviation sector is dynamic,with externalities such as competition,economic conditions and supply chain uncertainty driving the need for business agility.At the same time,customer expectations for seamless travel with excellent service

84、 are valued more than ever and that is our opportunity.The Kia Mau strategy outlines how we will step change our customer proposition to deliver sustainably stronger financial performance over the medium to long-term,and unlock our full potential.The Kia Mau strategy has three drivers of profit enha

85、ncement growing our domestic business,elevating our international business and lifting the value of our Airpoints loyalty programme.Supporting these drivers are four important enablers that guide our efforts Brilliant Basics,Serious about Sustainability,Digital Dexterity,and Prioritising People and

86、Safety.Grow DomesticOur domestic business is core to Air New Zealands purpose and provides critical infrastructure to connect New Zealand.Through decades of investment in fuel efficient aircraft,modern lounges and innovative digital products,we have sustained strong market share of approximately 85

87、percent.We do not take our position as the national airline for granted,and continuing to grow our domestic network while delivering a world-class service is a key strategic priority.Elevate International Elevating our international business allows us to connect New Zealand with the world,by flying

88、to destinations where our core New Zealand customers want to travel,and to markets that will enhance New Zealands tourism and economic ambitions.Profitable international growth will leverage the considerable investment in aircraft,new product and service offerings on-board and strong alliance partne

89、rships to ensure we are fulfilling our promise as a premium-leisure carrier.Cargo is a key component of our international network strategy.Lift LoyaltyOur Airpoints loyalty programme is ubiquitous in New Zealand,with over 4.6 million members,which essentially means there is one Airpoints member for

90、every New Zealand household.The popularity of our programme and our member engagement enables both increased airline revenue and additional profit streams from our valued partners.To deliver the profit potential across these three areas,we are focused on continuously improving on four enablers:Brill

91、iant BasicsBrilliant operational execution is the foundation for an exceptional customer experience.For us,Brilliant Basics means world-class operational performance and service for our customers so they will choose to fly with Air New Zealand.To execute on this promise,we are building new proprieta

92、ry digital tools,leveraging predictive maintenance technology across our fleet,developing more self-service options for customers via our app and implementing new ways of working for our airport teams which is focused on improving our on-time performance for customers.Serious about SustainabilityAch

93、ieving our sustainability ambitions is critical to our long-term success,however we know that targeting net zero emissions will be incredibly challenging for the aviation industry.We are focused on investments in next generation and new generation aircraft,Sustainable Aviation Fuel(SAF),and operatio

94、nal efficiencies to reduce our fuel burn and waste.Digital DexterityWe aspire to be the worlds leading digital airline.That means investing in innovations and digital infrastructure that make life easier for our customers and our people from the moment they start planning their trip or turn up to wo

95、rk for their shift,to the moment they exit the aircraft.One of the objectives of our cross-functional operating model is to embed digital capability and thinking across all parts of Air New Zealand.Prioritising People and SafetyOur number one priority is ensuring that our customers get to and from t

96、heir destinations safely and that the health,safety and wellbeing of our people is at the forefront of every decision we make.Our people have proven time and time again to be the secret to our success.We have a strong legacy of Air New Zealanders who go the extra mile for our customers.This is what

97、makes our service offering so unique and we will continue to drive a strong culture to sustain our world-class customer offering.Progress to date We are now two years into our strategy and have seen significant improvements to our core capabilities and delivery on our objectives.The table to the rig

98、ht highlights our key opportunities across each of the drivers and provides detail on some of our achievements in the 2024 financial year.AIR NEW ZEALANDANNUAL REPORT 2024AIR NEW ZEALAND GROUP1716AIR NEW ZEALANDANNUAL REPORT 2024Air New Zealand has reported earnings before taxation of$222 million fo

99、r the 2024 financial year compared to$574 million last year.The weaker economic backdrop in New Zealand drove a further deterioration in domestic demand in the second half,particularly for corporate and government segments.This decline in demand,together with the requirement for accelerated engine m

100、aintenance across the airlines Boeing 787 Dreamliner and Airbus A321neo fleets and elevated competition from US carriers,impacted the financial result this year.Net profit after taxation was$146 million.RevenueOperating revenue for the year increased 6.7 percent to$6.8 billion due to a significant r

101、amp-up in capacity on the airlines international long-haul routes.Excluding the impact of foreign exchange,operating revenue increased 6.3 percent.Total capacity(Available Seat Kilometres,ASK)increased 17 percent,reflecting the full resumption of flying including the Boeing 777-300ER fleet which was

102、 previously grounded due to Covid-19.Capacity,excluding cargo-only flying in the prior year,increased 23 percent.This capacity represents approximately 90 percent of the airlines pre-Covid network.Passenger revenue grew 11 percent to$5.9 billion as a result of increased international flying.Demand(R

103、evenue Passenger Kilometres,RPK)increased at a slower rate than capacity,resulting in a load factor of 81.5 percent,a decrease of 3.2 percentage points from the prior year.Revenue per Available Seat Kilometre(RASK)decreased 9.8 percent excluding foreign exchange,as both load factors and yields were

104、impacted by the significant growth in international long-haul.This includes the impact of unused customer credit breakage of$90 million which was recognised within passenger revenue in the current financial year.Excluding credit breakage,RASK decreased 10.9 percent excluding foreign exchange.Capacit

105、y across the international long-haul network increased by 37 percent,as the prior year was impacted by the phased return of grounded Boeing 777-300ER aircraft and the gradual removal of border restrictions for some Asian markets.Demand grew at a slower rate than capacity due to significantly increas

106、ed market capacity growth particularly between New Zealand and the United States.This resulted in a 5.0 percentage point decline in international long-haul load factors to 79.4 percent.International long-haul RASK decreased by 11.5 percent excluding credit breakage and the impact of foreign exchange

107、.Changes in foreign exchange resulted in a 0.7 percent improvement in reported RASK during the year.International short-haul capacity increased by 14 percent,driven by more widebody flying to Australia and the Pacific Islands.This additional capacity,alongside increased competition,meant that total

108、market capacity grew at a faster rate than demand.Load factors decreased 0.8 percentage points to 84.3 percent and RASK decreased 10.4 percent excluding credit breakage and the nominal impact of foreign exchange.Domestic capacity decreased 1.0 percent for the year,with up to six jet aircraft removed

109、 from service for parts of the year due to the global Pratt&Whitney PW1100 accelerated engine maintenance requirements.Despite this,demand still decreased by more than capacity as macroeconomic conditions in New Zealand softened across the financial year,which significantly impacted the corporate an

110、d government customer segments.While load factors decreased 0.7 percentage points to 84.2 percent,Domestic RASK was up 2.1 percent excluding credit breakage and the nominal impact of foreign exchange,due to the reduction in capacity flown.Cargo revenue was$459 million,a decrease of 27 percent.This w

111、as driven by the cessation of the New Zealand Government cargo subsidy scheme in March 2023,as well as an increase in total market cargo capacity into New Zealand as international carriers recommenced flying.Both factors resulted in an overall reduction in cargo yields,despite load factors improving

112、.Foreign exchange had a nominal impact.Financial CommentaryOur Financial Performance$222m earnings before taxationdown 61%on last year$90m revenue benefitfrom unused customer credit breakage$5.9b passenger revenueup 11%on last yearAIR NEW ZEALAND GROUP19AIR NEW ZEALANDANNUAL REPORT 202418Contract se

113、rvices and other revenue was$351 million,a decrease of 0.6 percent,due to reduced third-party maintenance revenue resulting from the closure of the Gas Turbines business,partially offset by increased passenger ancillary services.Foreign exchange had a nominal impact.ExpensesOperating expenditure inc

114、reased to$5.8 billion for the year as the airline further restored its international network.Reported costs per ASK(CASK)improved 1.6 percent as a result of lower fuel prices and the change in mix of flying,with a higher proportion of lower CASK long-haul flying compared to the prior year.This was l

115、argely offset by broad based inflationary pressure,which led to a$225 million increase in non-fuel operating costs compared to the prior year.Underlying CASK,which excludes the impact of fuel price,foreign exchange and third-party maintenance,deteriorated by 0.6 percent.Labour costs were$1.6 billion

116、,increasing by 13 percent compared to last year.Full-Time Equivalent labour(FTE)increased 2.0 percent to approximately 11,700.The increase in FTE was driven primarily by the need for increased levels of operational staff to support the return of international long-haul flying.To a lesser extent,extr

117、a resources to manage operational and supply chain disruptions also drove the FTE growth.Wage inflation of 5.3 percent contributed to higher labour costs,partly offset by lower provisions for short-term incentive payments in the current year.Fuel costs were$1.7 billion,increasing 13 percent this yea

118、r due to a 21 percent or$293 million increase in fuel consumption.The increase in fuel consumption was driven by a mix of greater overall network capacity and higher usage of the Boeing 777-300ER fleet on routes that would otherwise have been served by the more efficient Boeing 787 Dreamliners.A wea

119、ker New Zealand dollar also contributed$34 million to the overall increase in fuel costs,as did an increase in the cost of carbon offsets relative to the prior year.These increases were partially offset by a 7.1 percent,or$134 million decrease in the underlying US dollar Singapore Jet fuel price.Air

120、craft operations,passenger services and maintenance costs increased$273 million,or 19 percent driven primarily by increased flying activity on international long-haul routes and price inflation,particularly airport charges,air traffic control providers and engineering material supplies.These increas

121、es were partially offset by reduced third-party maintenance costs following the wind-down and closure of the Gas Turbines operation.Sales,marketing and other expenses increased$106 million,up 15 percent due to market development and related activities to support the increase in international flying,

122、in addition to increased digital and contact centre costs.Ownership costs were$749 million,an increase of$9 million or 1.2 percent from the prior year.Higher depreciation costs associated with new aircraft deliveries and capitalised engine maintenance activity were offset in part by lower net financ

123、e costs driven by higher interest rates on cash reserves.There was an unfavourable movement in foreign exchange hedging resulting in a net$7 million negative impact on the Group result for the period.Share of Earnings of AssociatesShare of earnings of associates were$30 million,a$9 million decrease

124、as supply chain disruptions impacted engine turn-around times and,therefore,earnings from the Christchurch Engine Centre,as well as unfavourable foreign exchange impact.Cash and Financial PositionCash on hand at 30 June 2024 was$1.3 billion,a decrease of$948 million on 30 June 2023.This was driven b

125、y a combination of lower operating cashflows in the year,scheduled debt and lease payments,dividends and capital management activities to manage cash levels towards the airlines target liquidity range of$1.2 billion to$1.5 billion.Financial Commentary(continued)1.EBITDA refers to operating earnings

126、before depreciation and amortisation,finance costs and taxation.Capital management activities included the purchase of unencumbered aircraft and the early repayment of several secured loans on aircraft during the year.At 30 June 2024 liquidity was$1.5 billion,reflecting cash balances as well as the

127、new commercial revolving standby facility of$250 million,which is undrawn.The new commercial facility replaces the undrawn Crown Standby loan facility that was in put in place during Covid and subsequently cancelled in March 2024.The airlines liquidity position does not include restricted cash,of wh

128、ich approximately$300 million is part of a commercial arrangement to provide security over New Zealand-based credit card obligations.The airline can choose to adjust the level of security at regular intervals during the year,which would result in an increase in cash on hand and overall liquidity.Cas

129、hflow and DebtOperating cash flows were$810 million,a decline of$1.0 billion on the prior year,reflecting both lower EBITDA and adverse working capital movements driven by a reduction in revenue in advance.In the prior year,pent-up levels of demand and industry-wide capacity constraints drove high l

130、evels of revenue in advance.At the same time,operating costs were lower as the international network continued to ramp up.This resulted in higher operational cash flows in the prior year.Net debt to EBITDA increased to 0.8x,which remains favourable to the airlines target leverage range of 1.5x to 2.

131、5x.The Board will continue to review appropriate tools to prudently transition this metric into the target range.DistributionsOn the basis of the airlines balance sheet strength and result for the year,the Board has declared an unimputed ordinary final dividend of 1.5 cents per share,taking the tota

132、l ordinary dividends declared for the year to 3.5 cents per share.The dividend will be paid on 26 September,to shareholders on record as at 13 September.1.5cpsordinary final unimputed dividendDividend record date13 September 2024Ex-dividend date12 September 2024Dividend payment date26 September 2024

133、1A I R N E W Z E A L A N D 2 0 2 4 A N N U A L R E S U L T S 1Invest in core operationsMaintain financial resilience and flexibilityDistributionsGrowth capexUnderpinned by our commitment to maintain investment grade credit rating metrics Target liquidity range of$1.2 billion to$1.5 billion Net Debt

134、to EBITDA ratio of 1.5x to 2.5x Fleet and infrastructure investments above WACC through the cycle Investment to support the airlines decarbonisation ambitions Ordinary dividend pay-out ratio of 40%to 70%of underlying net profit after tax(NPAT)Return excess capital via special dividends or share buyb

135、acks Disciplined investment in value accretive capex Target ROIC above pre-tax WACCOUR CAPITAL MANAGEMENT FRAMEWORK DRIVES FINANCIAL RESILIENCE AND SUSTAINABLE SHAREHOLDER VALUESO LID PR OG RE SS IN FY2 4 TO M O VE TOWA RDS OU R TA RG ETS Major progress on Auckland jet base and 787 interior programm

136、es Investment in battery electric and hybrid ground service equipment(GSE)$200 million 2023 special dividend paid$70 million unimputed ordinary interim dividend paid$50 million unimputed ordinary final dividend declared Cash purchase of two domestic A321neo aircraft Establishment of new$250 million

137、revolving credit facility to supplement liquidity,replacing unsecured committed Crown Standby Facility cancelled in Mar 24 Early repayment of select aircraft debtPROGRESS MADE IN FY24OUR CAPITAL MANAGEMENT FRAMEWORK DRIVES FINANCIAL RESILIENCE AND SUSTAINABLE SHAREHOLDER VALUEAIR NEW ZEALANDANNUAL R

138、EPORT 2024AIR NEW ZEALAND GROUP2120The key changes in earnings,after isolating the impact of foreign exchange movements,are set out in the table below:2.The numbers referred to in the Financial Commentary on the previous pages have not isolated the impact of foreign exchange.Change in ProfitabilityJ

139、une 2023 earnings before taxation$574mPassenger capacity$902m-Capacity increased by 23 percent(excluding cargo-only flights)due to the restart of the international network and return of widebody aircraft from storage following the removal of Covid-19 travel restrictions.Including cargo-only flights

140、capacity increased by 17 percent.-Domestic capacity decreased 1 percent due to the impact of the global Pratt and Whitney engine issue on the A321neo fleet.-International short-haul capacity increased 14 percent following the restart of routes and greater widebody flying across the Tasman and the Pa

141、cific Islands as aircraft were returned from storage.-International long-haul capacity increased 37 percent as border restrictions were lifted and B773 aircraft capacity was returned to the network through higher aircraft utilisation and the return of aircraft from storage.Passenger RASK-$416m-Overa

142、ll Group Revenue per Available Seat Kilometre(RASK)decreased by 10.9 percent excluding foreign exchange and unused credit breakage due to growth in international long-haul flying.The comparative period was impacted by high passenger demand in a capacity constrained market following the Covid pandemi

143、c recovery.Load factors decreased by 3.2 percentage points to 81.5 percent.-Domestic RASK increased by 2.1 percent excluding foreign exchange and unused credit breakage with load factor decreasing 0.7 percentage points to 84.2 percent.RASK was impacted by a reduction in capacity flown as well as low

144、er demand from corporate and government segments due to softening macroeconomic conditions and travel around the New Zealand general elections.-International short-haul RASK decreased by 10.4 percent excluding foreign exchange and unused credit breakage with load factor decreasing 0.8 percentage poi

145、nts to 84.3 percent.Fares moderated following a period of strong pent-up demand in the prior year along with a return of airline capacity to the market.-International long-haul RASK decreased by 11.5 percent excluding foreign exchange and unused credit breakage with load factors decreasing 5.0 perce

146、ntage points to 79.4 percent.During the period there was a significant increase in market capacity along with customer demand returning to more normalised levels.Unused credit breakage$90m-A breakage allowance was recognised in the current year for passenger unused travel credits for which it is con

147、sidered the likelihood of those credits being utilised is remote.Cargo revenue-$172m-Cargo subsidies provided under the New Zealand Government Maintaining International Air Connectivity(MIAC)scheme reduced by$98 million as the scheme ceased in March 2023.Yield declined as market capacity increased a

148、nd this was partially offset by the airline increasing capacity as there were a greater number of flights following a recovery in passenger demand.Contract services and other revenue-$4m-Reduced third-party maintenance work due to the wind-down and closure of the Gas Turbines operation in September

149、2023.This was partially offset by a recovery of ancillary revenue following an increase in customer activity,including Koru membership subscriptions,lounge revenue and commissions.Labour-$188m-Higher labour costs due to an increase in operating activity as demand returned and wage inflation offset b

150、y lower staff performance incentives.Fuel-$159m-Consumption increased by 21 percent($293 million)compared to an increase in capacity of 17 percent.The average fuel price,net of hedging and carbon costs,decreased 9 percent compared to the prior year resulting in a decrease in costs of$134 million.MOP

151、S price decreased by 7 percent.Aircraft operations,passenger services and maintenance-$265m-Higher costs related to an increase in flying activity,higher utilisation of B773 aircraft and price inflation partially offset by reduced third-party maintenance following the closure of the Gas Turbines ope

152、ration.Sales and marketing and other expenses-$98m-Increase in market development and brand spend to support an increase in international flying and higher investment in digital and contact centre.Ownership costs-$8m-Increase in depreciation with new aircraft deliveries and engine maintenance partia

153、lly offset by lower net financing costs driven by higher cash reserves and an increase in deposit rates.Net impact of foreign exchange movements-$36m-Unfavourable movements on operating revenue and costs as well as hedging losses due to market movements.Share of earnings of associates-$9m-Decrease i

154、n earnings from the Christchurch Engine Centre due to supply chain disruptions and unfavourable foreign exchange movements.Other significant items$11m-Prior year foreign exchange losses on uncovered debt offset by an impairment reversal on disposed widebody aircraft.June 2024 earnings before taxatio

155、n$222mFinancial SummaryUNIT20242023Operating revenue$m 6,7526,330Passenger revenue$m5,9425,349Operating expenditure$m5,8115,044Labour$m1,6291,441Fuel$m1,6921,499Depreciation and amortisation$m716695Earnings before taxation$m222574Net profit after taxation$m146412Basic and diluted earnings per sharec

156、ps4.312.2Dividends declaredcps3.56.0Dividends paid$m276-Net cash flow from operating activities$m8101,853Net cash flow used in investing activities$m822916Cash and cash equivalents at the end of the year$m1,2792,227Total assets$m8,5489,195Total liabilities$m6,5387,116Total equity$m2,0102,079Net debt

157、 to EBITDAtimes 0.8 0.3AIR NEW ZEALAND GROUP23AIR NEW ZEALANDANNUAL REPORT 202422SustainabilityLetter from the Chief Sustainability and Corporate Affairs OfficerTn koutouWelcome to this years sustainability updateOur purpose is to connect New Zealanders to each other and the world,but as part of an

158、industry reliant on fossil fuels,this comes at a cost to both the environment and the communities who rely on it.Around half of New Zealands Gross Domestic Product relies on nature.Our livelihood food,trade and tourism is built on the promise of the unique natural environment we call home.Following

159、a pilot last year,we have now established a Climate and Nature Fund,with around$9 million set aside this financial year to invest in accelerating our own decarbonisation,support New Zealands energy transition,and to support biodiversity and nature.We are pleased to be supporting initiatives such as

160、biodiversity projects on the Great Walks with the Department of Conservation,and the Halo Project with Trees That Count.We have also used the fund to invest in scaling SAF1 supply through the United Airlines Ventures Sustainable Flight Fund,fund domestic SAF feasibility studies,and trial hydrogen-fu

161、elled charging of battery-powered ground service equipment.Aotearoa New Zealand relies on aviation for trade,tourism and connectivity.However,both our airline and the sector overall face climate-related risks as we transition to a lower emissions operating model.We have received one delivery of SAF

162、into the country this financial year,as well as uplifted SAF from Los Angeles and signed an agreement with Neste for nine million litres of SAF produced in their Singapore refinery.While small in volume,these purchases are important to help us learn how to best integrate SAF into our supply chain bo

163、th here in Aotearoa New Zealand and abroad.We are also testing Next Generation Aircraft(NGA)and have selected BETAs battery-powered all-electric aircraft ALIA CTOL as our first,which we expect to fly cargo on from 2026.To further embed a focus on reduction of carbon emissions across the organisation

164、,this financial year our short-term incentive programme included a performance measure relating to carbon emissions.After careful consideration,Air New Zealand has decided to remove the 2030 science-based carbon intensity reduction target and withdraw from the Science Based Targets initiative.Unfort

165、unately,many of the levers needed to meet the target,including the availability of new aircraft,the affordability and availability of SAF,and global and domestic regulatory and policy support,were outside the airlines direct control.In the last few months,potential delays to our fleet renewal plan p

166、osed additional risks to the targets achievability,meaning the airline needed to retract it.This does not impact our continued commitment to reaching our 2050 net zero carbon emissions target.Work has already begun to consider a new near-term carbon emissions reduction target that could better refle

167、ct the challenges relating to aircraft and SAF availability within the industry.Finally,this year we farewelled the Chair of our Sustainability Advisory Panel,Sam Mostyn AO,due to her appointment as Governor-General of Australia.Her contribution to our business was immense,and we know her contributi

168、on to Australia will be remarkable.We also farewelled Dr Susanne Becken,Katherine Corich,and Nadine Toe Toe,as their terms with the Panel came to an end.Our deepest gratitude to each for their service and care.James Shaw,former Green Party Co-leader and Minister for Climate Change,and Matteo Mirolo,

169、the Head of Policy and Strategy in the Aviation Contrails team at Breakthrough Energy,joined Professor Tim Jackson onto the Panel in 2024.We look forward to working with them on this critical mahi.Ng manaakitanga,Kiri HannifinChief Sustainability and Corporate Affairs OfficerOur Sustainability Updat

170、e1.As defined on page 12.AIR NEW ZEALAND GROUP25AIR NEW ZEALANDANNUAL REPORT 202424GovernanceAt Air New Zealand,governance of sustainability covers environmental and social matters.It is a broader concept than climate-related matters alone.Information about how climate-related risks and opportunitie

171、s are governed is outlined in our Climate Statement,which can be found here.Board of DirectorsThe Air New Zealand Board of Directors has overarching responsibility for sustainability this includes,but is not limited to,climate-related matters.Executive teamThe Executive team is responsible for devel

172、oping and implementing the airlines sustainability strategy.The Chief Sustainability and Corporate Affairs Officer(CSCAO)leads the Sustainability team,who provide expertise and advice to the airline about sustainability matters.The CSCAO reports directly to the Chief Executive Officer.Sustainability

173、 Advisory PanelThe airlines independent Sustainability Advisory Panel meets twice a year to provide advice to the airline in relation to sustainability developments and initiatives.These meetings include sessions with the Board,the Executive and the Sustainability team.Snapshot of our 2024 climate p

174、erformanceFor the 2024 financial year,Air New Zealands total CO-e emissions were 4.3 million tonnes.This was an increase from 3.7 million tonnes in the 2023 financial year,largely driven by increased flying activity on international routes.Sustainability FrameworkThis report covers the 2024 financia

175、l year and progress against the current Sustainability Framework,which will end this year.We are continuing to evolve our sustainability strategy and intend to release a new strategy and framework next year to guide our activity to 2027.Our current Sustainability Framework can be found here.Our repo

176、rting approachThe following information provides an update on progress the airline has made against the metrics identified in its current Sustainability Framework.Data and commentary contained in this section relates to the financial year ended 30 June 2024,unless otherwise stated.Air New Zealands o

177、rganisational boundary for sustainability reporting encompasses the companies listed on page 3 of Air New Zealands 2024 Greenhouse Gas Emissions Inventory Report.The following supporting information can be found on our website:Climate Statement;Greenhouse Gas Emissions Inventory Report;Workforce Pro

178、file;Gender Pay Report;Metrics Table.Climate ActionOur first Climate StatementThis year we published our first Climate Statement,as required by the Aotearoa New Zealand Climate Standards(NZ CS).The Climate Statement is structured around the four mandatory sections of the NZ CS,which are based on the

179、 recommendations of the Task Force for Climate-related Financial Disclosures(TCFD)framework that Air New Zealand has voluntarily reported against since the 2020 financial year.Our Climate Statement provides information about the risks and opportunities that climate change presents for Air New Zealan

180、d across the short,medium,and long-term.It outlines how these risks and opportunities are governed,our risk management processes,how climate change impacts the airline today,and how it may impact us in the future.Climate-related metrics and targets that are most relevant to the airline are also prov

181、ided.The sections below include a snapshot of our 2024 climate performance,a summary of our material climate-related risks,and a high-level overview of our Transition Plan.Please note these are extracts only,and readers should refer to the Climate Statement,found here,for our full disclosure.Sustain

182、ability(continued)CATEGORY OF RISKSUMMARY OF SPECIFIC RISK(SEE CLIMATE STATEMENT FOR FURTHER DETAILS)MATERIAL TIMEFRAMESSHORT-TERM(0-5 YEARS)MEDIUM-TERM(5-18 YEARS)LONG-TERM(18+YEARS)PHYSICAL RISKSAcute and severe weather eventsClimate change is expected to increase the magnitude and frequency of ac

183、ute and severe weather events.This could cause delays and disruptions to the airlines operations,and potentially damage physical assets like aircraft,property,and ground service equipment.*Chronic climate changeLonger-term shifts in underlying climate patterns like average temperature,rainfall,and s

184、ea level rise could constrain the airlines network options,increase mitigation spending,and exacerbate the effect of increased acute and severe events.TRANSITION RISKS FOR THE AIRLINEChanging demandClimate change could affect underlying drivers of aviation demand,consumer preferences,and airline cos

185、ts,which might affect demand for all global airline services,including Air New Zealands.Competitive differentiationIn this context,competitive differentiation refers to the pace and cost at which Air New Zealand transitions to a lower emissions business model,compared to competitors.Both the airline

186、s strategic choices around its Transition Plan,and similarities and differences in policy settings across markets,could affect the pace and cost of the airlines transition and competitive positioning relative to peers.Emissions pricingAir New Zealand is currently a participant in two emissions prici

187、ng schemes:the New Zealand Emissions Trading Scheme(NZ ETS)and the International Civil Aviation Organizations(ICAOs)Carbon Offsetting and Reduction Scheme for International Aviation(CORSIA).Potential changes to the scope of emissions included in these schemes,the level and volatility of emissions pr

188、icing in the schemes,and the potential for new emissions pricing schemes to be developed,could increase the airlines cost base.Funding,insurance,and legal claimsAir New Zealands ability to transition to a lower emissions business model,and its exposure to climate-related risks and regulation,may aff

189、ect the airlines access to funding and insurance,and its legal exposure.Supply chain disruption and cost increasesThe resilience and adaptability of Air New Zealands supply chain to climate-related risks could affect the airlines ongoing operations.This includes airports and suppliers of other infra

190、structure,air traffic management services,aircraft,fuel and fuelling infrastructure,and spare parts and engines for aircraft.TRANSITION RISKS RELATING TO THE TRANSITION PLANAvailability and price of SAFAcquiring the required volumes of SAF at commercial prices is a material success factor for the ai

191、rlines achievement of its Transition Plan.The airlines ability to do this relies on external developments in production,technology,certification,costs and policy support,which are all evolving rapidly and so carry significant uncertainty and risks for the airline.Carbon removal supply and costIn the

192、 longer term,Air New Zealand anticipates relying on carbon removals to address residual emissions and achieve its 2050 Target.This includes nature-based removals,for example,enhancements to natural systems or ecosystems that sequester and store carbon on a certified,additional,and enduring basis,and

193、 engineered removals,for example,using technology to capture CO directly from the air.However,the availability,cost and credibility of both nature-based and engineered removals represent material uncertainties and risks to the airlines achievement of its Transition Plan.Conventional fleet renewalRep

194、lacement of the current fleet with more efficient and/or innovatively designed conventional aircraft is critical to achievement of the airlines Transition Plan but relies on global suppliers to deliver affordable aircraft on expected timelines.These suppliers are already severely constrained and dev

195、elopment and commercialisation timeframes are uncertain.NGA adoptionAir New Zealand expects NGA to play a role in achieving the 2050 Target.However,significant progress by third-parties is required for this to be viable.Delays in the medium to long-term could impact the delivery of the airlines Tran

196、sition Plan.Our climate-related risksDuring the 2024 financial year,we updated our assessment of the climate-related risks and opportunities that the airline faces.A summary of the most material risks is provided below.Our Climate Statement also provides an overview of the current and anticipated im

197、pacts of climate change on the airline.For example,in the 2023 calendar year,Air New Zealands cost to meet its domestic Emissions Trading Scheme obligation was$38 million,which increased from the 2022 calendar year due to increases in both the airlines emissions and the price we paid for New Zealand

198、 Units to meet the obligation.Note that the airline has not identified any material opportunities from climate change,as defined by the NZ CS.On balance,the effects of climate change create risks for the aviation sector,notwithstanding the opportunities to reduce the impact of those risks(for exampl

199、e,by reducing net emissions through new technology such as SAF and NGA,or reducing emissions costs or the costs of such technology through different mitigators).There may also be opportunities for the airline to differentiate itself competitively by moving faster or slower than peers to decarbonise,

200、or to evolve its domestic network through the use of NGA in the future.However,the size and nature of these opportunities is not yet considered material.Scope 324%1.03 MtCO-e 67%is from jet fuel23%is from purchased goods and services8%is from capital assets 2%is from remaining categories Scope 20%0.

201、002 MtCO-eScope 176%3.25 MtCO-e99%is from jet fuel92%of Air New Zealands total GHG emissions relate to jet fuel*Note on short-term impacts:while acute and severe weather events can occur in the short-term,the contribution of climate change to exacerbating the impact of these events is difficult to a

202、ttribute,and the associated financial impact is unlikely to be material to Air New Zealand,so the risk posed to Air New Zealand is assessed as not material in the short-term.Air New Zealand nonetheless acknowledges that these events would likely be material and potentially devastating to impacted co

203、mmunities.AIR NEW ZEALANDANNUAL REPORT 2024AIR NEW ZEALAND GROUP2726Our Transition PlanLike all airlines globally,Air New Zealand relies on fossil jet fuel to operate its passenger and cargo services.As such,the aviation industry emits significant amounts of greenhouse gases.Aviation is widely recog

204、nised as a hard-to-abate sector due to the limited alternatives of suitably energy intense and light weight fuels.Air New Zealand plans to reduce its carbon emissions over time,acknowledging the substantial industry changes,technology development and policy support required to do so.The airlines Tra

205、nsition Plan helps to demonstrate potential paths to make these reductions over time.Air New Zealands Transition Plan has been developed with reference to its 2050 Target.During the 2024 financial year,the Transition Plan was also guided by the 2030 Target,though the airline removed this target in J

206、uly 2024.The airline has developed roadmaps and governance structures that monitor and support the delivery of the Transition Plan.These roadmaps and governance structures are dynamic in the sense that they are regularly reviewed and assessed to ensure they remain fit for purpose.The airline therefo

207、re expects them to change over time.The Transition Plan will also evolve over time.Air New Zealands strategy for delivering its 2050 Target is currently designed to:Reduce emissions through using more efficient aircraft,adopting NGA,and improving operational efficiency,where reasonably possible;Redu

208、ce emissions through increasing use of SAF(with emissions being reduced due to the biogenic nature of SAF that is explained on page 27 of the Climate Statement,despite producing similar emissions as fossil jet fuel when combusted);and Thereafter selectively using eligible carbon credits and removals

209、 to address residual emissions in the period to 2050.Some actions necessary to enable the airline to achieve the 2050 Target are within the control of the airline,but most rely on third-parties and governments to take material actions,within assumed timeframes.SAFCarbon Credits and RemovalsSustainab

210、ility(continued)RoadmapOne hypothetical roadmap is shown above,which illustrates Air New Zealands view of how a series of measures could make varying contributions to help the airline potentially reach net zero carbon emissions over the period to 2050.The roadmap illustrates various scenarios that c

211、ould apply through to the 2050 Target.It is possible that the 2050 Target could be achieved through a different combination of factors or not achieved in full if,for example,the required technology and policy developments do not eventuate as illustrated above.Primary users should not infer from thes

212、e roadmaps that achievement of the 2050 Target is certain to eventuate.See pages 21-24 of the Climate Statement for more information.Two overarching assumptions shape the Transition Plan roadmap.First,a long-term growth rate for aviation sector demand of 2.5 percent per annum to 2050,measured in Rev

213、enue Tonne Kilometres(RTK)and based on Boeings Commercial Market Outlook for the regions in which Air New Zealand operates.This is represented as Potential business as usual carbon emissions on Air New Zealands illustrative roadmap,which shows what emissions could be if demand grew at this rate and

214、the airlines emissions intensity was fixed at 2019 levels.Second,the assumption that Air New Zealand will meet this demand by adopting a portfolio of lower carbon technology when the airline is feasibly and commercially able to do so,and through continued fossil jet fuel-powered air travel in the me

215、antime.The roadmap is not a guarantee of future performance or the actual contributions made by any of the components of the Transition Plan.Actual results,developments or contributions may differ materially from those presented.Air New Zealand intends to update roadmaps like this internally and upd

216、ate this public view annually.In some cases,for example certain NGA concepts and carbon removal solutions,the contributions relate to technologies that have not yet been developed or sufficiently scaled,and the estimated contributions in the roadmaps may evolve materially.Air New Zealand illustrativ

217、e roadmapMt COe7654321020152020202520302035204020452050TARGET NET ZERO CARBON EMISSIONS BY 2050Note:the sum of these ranges may exceed 100 percent as the contribution of each lever may vary.NET CARBON EMISSIONSPOTENTIAL BUSINESS AS USUAL CARBON EMISSIONSSAF(including both biogenic and e-SAF)is curre

218、ntly expected to play one of the largest roles in Air New Zealands Net Zero 2050 journey,contributing around 35 45 percent of the emissions reduction in 2050.Carbon Credits and Removals will be required to“net-out”residual emissions,and could be required for around 10 30 percent of the total under c

219、urrent modelling assumptions.Most of this use between now and 2035 will be to meet global compliance obligations under CORSIA.Operational and Fuel Efficiency is currently expected to deliver 1 2 percent of the emissions reduction in 2050.Optimising Fleet and Network is currently expected to play a l

220、arge role in Air New Zealands Net Zero 2050 journey,contributing around 20 30 percent of the emissions reduction in 2050.NGA is currently expected to deliver around 10 15 percent of the emissions reduction in 2050.Operational and Fuel EfficiencyNGAFleet and NetworkAIR NEW ZEALANDANNUAL REPORT 2024AI

221、R NEW ZEALAND GROUP29282.28,707 of these credits have already been retired on behalf of Air New Zealand.29,781 of these credits need to be retired on behalf of Air New Zealand.3.Changes made to the VECP at the start of the 2024 financial year,such as including radiative forcing by default,resulted i

222、n the amount of carbon measured per person through the programme increasing and as such,the price charged to the customer also increasing.The reduced contribution rate in the year is thought to be due to the increased price.Sustainability partnershipsVoluntary Emissions Contribution Programme(VECP)P

223、assengers booking a flight on our website can opt in to our VECP and buy carbon credits from certified international projects in an amount based on their flights estimated emissions.Our VECP also supports biodiversity here in Aotearoa New Zealand by partnering with Trees That Count.Native trees and

224、plants are planted across a range of selected projects which restore,regenerate and protect our unique natural environment.In the 2024 financial year,customers booking through the Air New Zealand website purchased 58,488 tonnes of carbon credits,and contributed$988,000 to Trees That Count(resulting

225、in 123,502 trees being planted,supporting biodiversity outcomes across Aotearoa New Zealand).3.4 percent of bookings made through online storefronts where the VECP is available contributed to the programme.In March 2024,we introduced an emissions reporting platform for Corporate,Government,and Cargo

226、 partners,to provide visibility of emissions estimates including by route and seat class where applicable.Customers can purchase carbon credits from certified projects based on their emissions data through our carbon credits partner,CHOOOSE.To date,more than 14 cargo and 221 corporate customers have

227、 signed up to the platform.Partnering for better biodiversity outcomesThis year we have expanded our support of the Department of Conservation(DOC)and Trees That Count.DOCContinued to support biodiversity projects alongside five Great Walks,including 41,457 hectares of sustained predator control and

228、 threatened species monitoring;and confirmed future funding to support biodiversity projects alongside the Whanganui River Journey Great Walk.We also flew more than 200 threatened species and conservation dogs.Trees That CountConfirmed funding for the Halo Project enabling land and habitat restorati

229、on of degraded and threatened ecosystems in tepoti,Dunedin.Sustainability(continued)4.This score is out of 100 and based on the responses to two questions in our Employee Survey which is run quarterly on the Glint platform How happy are you working at Air New Zealand and I would recommend Air New Ze

230、aland as a great place to work.Responses are measured on a 5-point scale.5.As at December 2023,the Glint Global Top 25%engagement threshold was an Engagement Index score of 79.6.This score is out of 100 and based on the response to the statement in our Employee Survey-I feel a sense of belonging at

231、Air New Zealand.Responses are measured on a 5-point scale.7.The utilisation numbers may include people who seek support through multiple channels,due to the confidentiality and/or anonymity of individual data.This includes Peer Support,where an individual may seek support from a Peer Support Network

232、 volunteer over several quarters.Financial year 2024 data also differs from previous reporting,in that EAP usage includes new and existing users(rather than just new users),and utilisation rate is calculated by total employee numbers rather than FTE less those on Leave Without Pay(LWOP).Overall,Air

233、New Zealand aims to maintain a utilisation rate of support services above 10 percent to illustrate proactive use as well as reactive support.8.Based on the volumetric utilisation of available belly capacity(including passenger bags)unless a 100%gross weight load factor is achieved sooner.Caring for

234、New ZealandersAir New Zealand is committed to the role we play in connecting people and communities,and we strive to be a place where everyone can feel included and supported.The airline was named New Zealands most attractive employer for 2024 by Randstad,and while we missed our target employee enga

235、gement score of 79(we achieved 70),we are continuing to see our engagement trend stay steady.We also launched a new engagement measure this year,“I feel a sense of belonging at Air New Zealand”to bring an outcomes-focused approach to our employee engagement and as a measure of progress for our Diver

236、sity Equity&Inclusion(DE&I)work.Target20242023Air New Zealands employee engagement score4 being in Glints Global Top Engagement Index benchmark of 79 70 as at June 2024 71 as at June 2023I feel a sense of belonging at Air New Zealand target 757269Grow access to and use of employee assistance support

237、 tools(including Employee Assistance Programme,Peer Support Network and Bullying and Harassment Contacts)The utilisation rate of support tools was 16.0%in financial year 2024The utilisation rate of support tools was 14.7%in financial year 2023Double our spend with Mori and Pasifika owned businesses

238、and social enterprises to$24 million,and double our diverse sourcing relationships to at least 50 suppliers by the end of financial year 2024$16 million was spent with diverse suppliers across 39 suppliers$12 million was spent with diverse suppliers across 26 suppliersBetter connecting Aotearoa New

239、Zealand exporters to the world by increasing cargo load factors on our widebody international network to 85%by financial year 2025(from 67%in financial year 2019)63%load factor for financial year 2024 on our widebody international network67%load factor for financial year 2023 on our widebody interna

240、tional networkRautaki Kanorau,Tautika&Kauawhi He hunga au Diversity,Equity&Inclusion I BelongWorking alongside and valuing the voices of Air New Zealanders with diverse perspectives and experiences makes us more innovative and supports better decision-making.Our refreshed DE&I strategy was developed

241、 in partnership with our diverse teams and we are focusing on working with them to bring the strategy to life.This year we have continued to see progress on our key DE&I metrics.For an update on our key DE&I targets,see page 39 of our Corporate Governance Statement.Mangpare Air New Zealand Pilot Cad

242、etshipIn June 2024,we launched the airlines first-ever Mangpare Pilot Cadetship,designed to inspire more people to pursue a career as a pilot by reducing financial barriers,encouraging greater diversity.The cadetship complements existing pilot pathways to help ensure we can continue to meet future d

243、emand and avoid possible pilot shortages.With an initial commitment of 30 pilots,the all-inclusive training programme accelerates the journey to becoming a commercial pilot from the typical 24-36 months to approximately 14 months.Successful cadets will commence training in small cohorts from Septemb

244、er 2024,with the majority of costs,including training and living expenses,funded by Air New Zealand.Climate and Nature FundIn 2023,Air New Zealand piloted an internal carbon charge on its flagship ultra long-haul route,Auckland to New York,which creates a dedicated revenue or investment stream which

245、 we have ring-fenced for investment in sustainability initiatives.This year,the charge was expanded to include operations between Auckland,Chicago and Houston.Together with the profits from Air New Zealands loyalty partnership with Z Energy,the charge generated around$9 million in the 2024 financial

246、 year.These funds have been distributed across four key categories,with implementation,progress and outcomes to be undertaken and reported in the 2025 financial year.Scaling SAF Mitigating emissions Growing renewable energy supply Organisational improvementsCreating better connections through greate

247、r diversity and learningWe were proud to support a range of events to celebrate and highlight our diversity at Air New Zealand this year.These included celebrating Matariki,with a market organised by the Manu Network,our KASIA Network celebrating Diwali and Lunar New Year,our Womens Networks panel h

248、olding a discussion to celebrate International Womens Day,and our Pride Network returning to the Auckland Rainbow Parade.We also established a new partnership with Pride Pledge to support us and our commitment to the safety,visibility,and inclusion of the Rainbow community.Performer at Diwali celebr

249、ationsWelcoming a new breed of conservation experts In October 2023,we announced the expansion of our DOC partnership to include the Conservation Dogs Programme(CDP),which provides leadership of conservation dogs trained to detect New Zealands protected species and unwanted pests.The funding provide

250、d by Air New Zealand helps the CDP to mentor,certify and support dog-handler teams.It has enabled 50 days for undertaking mentoring work;462 field days for undertaking biosecurity checks,incursion responses,surveillance and species detection work;and 24 advocacy events.In addition,33 pest and specie

251、s detection dogs received full certification and 27 received interim certification.Conservation dog handler,Andy Glaser,and species detection conservation dog,Max,on a whio/blue duck survey alongside the Milford TrackAIR NEW ZEALANDANNUAL REPORT 2024AIR NEW ZEALAND GROUP3130Cabin Crew Sustainability

252、 ActivatorsCabin Crew Sustainability ActivatorsTo harness the passion of our Cabin Crew in taking sustainability action,in October 2023 we launched the Cabin Crew Sustainability Activators.Made up of cabin crew from across our turboprop,narrowbody and widebody fleets,the Activators initiate and deli

253、ver sustainability initiatives.Flourish Caf providing great coffee and even greater opportunities In November 2023,with the support of Air New Zealands Enable Network,Flourish Caf opened its doors at our Auckland Hub.This is the second caf for Project Employ,an organisation focused on ensuring young

254、 people with intellectual or learning disabilities and differences are not just included,but thrive in meaningful,paid employment.Ka Rere:helping develop a supply chain that reflects Aotearoa New ZealandAir New Zealands focus on supplier diversity aims to promote and increase the participation of di

255、verse suppliers in our procurement process,and better reflect the communities where we live,work and fly.Our initial focus has been to grow the number of Mori and Pasifika-owned businesses,as well as social enterprises,that we work with.While we did increase our spend to$16 million across 39 diverse

256、 suppliers in the 2024 financial year,there is still work to do to increase supplier diversity at Air New Zealand.In January 2024,we launched Ka Rere,a diverse business accelerator programme.More than 250 businesses applied,with Air New Zealand selecting three businesses as part of a 12-week mentori

257、ng round.Kenai,a Mori-owned ESG-focused construction company;Beyond Soap,a Pasifika-owned company that sells locally made plastic and palm-oil free hand,body and haircare bars;and Tpae,a Mori-owned vineyard on Waiheke Island focusing on regenerative viticulture.In addition to a$20,000 cash grant to

258、invest in and grow their business,the three businesses were able to access a range of skills,knowledge,and experience from within the Air New Zealand team.In turn,we are also learning from these businesses,and the many more that applied,about how we can grow and support a more diverse supplier base.

259、We are looking to undertake a second round of Ka Rere in early 2025.Sustainability(continued)Driving towards a circular economyTarget2024202365%of total solid waste diverted from landfill by financial year 202347.5%diverted from landfill40.4%diverted from landfillGetting wise about wastePreventing a

260、nd reducing waste is a key concern for Air New Zealand.This year Air New Zealand diverted 1,011 tonnes of waste from landfill.This represented 47.5 percent of total waste9 across the airlines Domestic ground sites,and airports serviced by our main waste provider.It also included waste data from our

261、Auckland and Christchurch lounges which has been provided by our cleaning provider.842 tonnes of waste was recycled 169 tonnes of waste was composted 1,116 tonnes of waste was sent to landfillWe were disappointed not to meet our waste diversion target,and to help provide more focus across the busine

262、ss,we have undertaken detailed waste audits across our operations and developed a new Circular Economy strategy and targets for 2025-2027,which we will release in the 2025 financial year.Setting a new strategy for Circular EconomyThe waste audits identified the need for both systemic and behaviour c

263、hange,with a large proportion of waste going to landfill being products that could otherwise be diverted.However,waste from each business unit varies significantly,and these differences can also skew performance when using total landfill diversion as a waste measurement.For example,Cargo handles hea

264、vy materials like wood so recyclable waste tends to be heavy whereas in other parts of the business recyclable waste tends to be lightweight plastic.The new Circular Economy strategy sets business unit specific targets and will roll out in two phases.Phase One focuses on getting the basics right and

265、 improving processes around operational waste,removing unnecessary waste streams,and re-establishing our onsite waste champions.It also includes introducing a short-term incentive scheme target for eligible team members,to further highlight,embed and engage our team around waste.Phase Two will focus

266、 on circular inputs and outputs regarding procurement and customer engagement.9.These totals exclude hazardous waste,international inflight biosecurity waste,building and construction waste,and other Air New Zealand waste managed by airport companies.10.Excludes Christchurch Regional Express.Single-

267、use cups a case studyWe have now removed single-use cups from our New Zealand,Australia,Fiji,and Cook Islands lounges.This will eliminate nearly one million single-use cups from our waste stream each year.In March 2024,Air New Zealand also ran six single-use cup free Domestic trial flights where we

268、encouraged passengers to bring their own cup and provided reusable cups onboard.Around 10 percent of customers brought a reusable cup,and there was overwhelming support to move to a reusable cup offering.We will be continuing our work to understand how we can reduce inflight single-use cups,includin

269、g how we can further encourage passengers to bring their own cups.Single-use cup free flight trialWaste audits of Air New Zealands wasteSupporting our Supply ChainCritical to the success of our operations is ensuring we have a strong,capable and responsible supply chain.Air New Zealand is committed

270、to social and environmental responsibility,ethical conduct,and to maintaining operational integrity and safety at all times.In December,Air New Zealand published its 2023 Modern Slavery Statement which can be found here.We are also finalising changes to our Supplier Code of Conduct to provide greate

271、r focus on modern slavery and responsible sourcing due diligence and will release this in the first half of the 2025 financial year.AIR NEW ZEALANDANNUAL REPORT 2024AIR NEW ZEALAND GROUP3332Sustainable tourismTarget20242023Increase annual growth in bookings for Qualmark-awarded operators on Air New

272、Zealands website by 100%by financial year 2023 from a financial year 2021 baseline47%85%30%of New Zealanders aware of Tiaki Promise by June 202524%23%Connecting New Zealanders to each other and to the worldAir New Zealand is proud to play our part in a successful and thriving tourism industry for Ao

273、tearoa New Zealand.This year we have continued to invest in key markets,including working in partnership with Tourism New Zealand to market New Zealand.In May 2024,we were again the Premier Sponsor of TRENZ in Wellington and in June we were the Airline Partner for Meetings 2024.Air New Zealand also

274、partnered with New Zealand Mori Tourism to enable buyers attending TRENZ to experience some of our best Mori tourism in the Bay of Plenty,Rotorua,Northland and Taup regions.In addition,we encouraged New Zealanders to explore their own backyard through domestic marketing,including promoting a range o

275、f domestic destinations and promoting events such as the Hokitika Wildfoods Festival.Air New Zealand also works closely with a range of regional tourism operators and organisations to help promote the regions in both local and international markets.This year,partnership campaigns showcased Wellingto

276、n,Auckland,the West Coast,Nelson,Rotorua and Invercargill.11.New target set by Te Khui Tautiaki in September 2023.Proud to support sustainable tourism businessesSupporting tourism businesses that are committed to making Aotearoa New Zealand a world-class and sustainable visitor destination is a key

277、part of supporting sustainable tourism for the future.Highlights from our partnership with Qualmark this year include development of a new video that is screened on Air New Zealands inflight entertainment on domestic jet aircraft and advertising in Kia Ora magazine promoting Qualmark.Setting our sig

278、hts on a thriving tourism industry long-termIn the 2024 financial year we participated on the Industry Development Group for Tourism 2050,a strategic initiative led by Tourism Industry Aotearoa(TIA),aimed at shaping the future of Aotearoa New Zealands tourism industry.For Air New Zealand,the success

279、 of tourism is intrinsically linked to both our purpose and our own success.We look forward to being part of this collaborative work going forward.Bringing Kia Rite to lifeOur new Mori strategy Kia Rite outlines opportunities and business drivers to grow our Mori workforce,embed te ao Mori and forge

280、 partnerships with Mori entities.Focusing on growing Mori participation into the business through talent acquisition and development of current employees,as well as increasing procurement of goods and services from Mori businesses,brings te ao Mori thinking into the operations of the airline and gro

281、ws connections with communities.In the 2024 financial year we have worked hard to embed principles of te ao Mori into the selection criteria around Ka Rere,our new diverse business accelerator programme,and as part of the brief for our domestic SAF feasibility studies.Members of our Manu Network per

282、forming at the Matariki MarketBringing the Tiaki Promise to lifeThe Tiaki Promise is a commitment to protect and preserve Aotearoa New Zealands natural environment,respect local culture,and travel responsibly.This year we continued to support the Tiaki Promise through promotion and education,partner

283、ship activity,and our work to reduce our environmental footprint and support conservation efforts.Our Corporate Governance StatementSustainability(continued)AIR NEW ZEALAND GROUP35AIR NEW ZEALANDANNUAL REPORT 202434Effective corporate governance is at the heart of the Air New Zealand Boards agenda,a

284、nd the Board considers its governance practices to be consistent with the Principles of the NZX Corporate Governance Code dated 1 April 2023.This Corporate Governance Statement was approved by the Board on 28 August 2024 and is current as at that date.Our Governance StructureThe BoardThe Board is re

285、sponsible for guiding the corporate strategy and direction of Air New Zealand and has overall responsibility for decision making.Audit&Risk Committee(ARC)Advises and assists the Board in discharging its responsibilities with respect to financial reporting,compliance and risk management practices of

286、Air New Zealand,and oversight of key risks including climate and cybersecurity.Chair:Alison Gerry Claudia Batten Laurissa Cooney Dame Therese WalshPeople,Remuneration&Diversity Committee(PRDC)Advises and assists the Board in discharging its responsibilities with respect to oversight of the People St

287、rategy of Air New Zealand.Chair:Laurissa Cooney Dean Bracewell Paul Goulter Dame Therese WalshHealth,Safety&Security Committee(HSSC)Advises and assists the Board in discharging its responsibilities with respect to health,safety and security matters arising out of activities within and by Air New Zea

288、land including oversight of health,safety and security risks.Chair:Dean Bracewell Larry De Shon Alison Gerry Paul Goulter Dame Therese WalshExternal Sustainability Advisory PanelExternal advisory panel providing advice to the Board and Management on Sustainability matters.External AuditHead of Inter

289、nal AuditReports functionally to the Audit&Risk Committee and administratively to the Chief Financial Officer.Disclosure CommitteeFacilitates the provision of timely and appropriate market disclosure in accordance with the Continuous Disclosure Policy.Chief Executive OfficerDelegated responsibility

290、for implementing the Boards strategy and for managing the operations.Chief Financial OfficerManages the Internal Audit function.Responsible for managing the financial affairs of Air New Zealand.General Counsel&Company SecretarySecretary to the Board and accountable directly to the Board,through the

291、Chair,on all matters to do with the proper functioning of the Board.Board/Committee meeting attendance 1 July 2023 to 30 June 2024BoardAudit&Risk CommitteePeople,Remuneration&Diversity CommitteeHealth,Safety&Security CommitteeAttendance1Attendance1Attendance1Attendance1Dame Therese Walsh10/104/45/53

292、/4Claudia Batten10/104/4Dean Bracewell10/105/54/4Laurissa Cooney10/104/45/5Larry De Shon9/104/4Alison Gerry9/103/42/4Paul Goulter9/105/54/4Jonathan Mason3/30/12/21.The attendance is the number of meetings attended/number of meetings for which the director was a member.Jonathan Mason retired from the

293、 Board on 30 September 2023.Current DirectorsDetails of directors skills and experience can be found at:airnewzealand.co.nz/air-new-zealand-boardBoard skills and diversity4TOURISMCUSTOMER EXPERIENCE4SUSTAINABILITY2GOVERNMENT/STAKEHOLDER3INTERNATIONAL BUSINESS4DIGITAL/TECHNOLOGY2ENGINEERING/SAFETY34F

294、INANCIALAge40 49160 693Average 5750 593GenderFemale4Female 57%Male3Dame Therese WalshDNZM,BCA,FCAIndependent Non-Executive Director(Appointed 1 May 2016)ChairClaudia Batten LLB(Hons),BCAIndependent Non-Executive Director(Appointed 28 October 2021)Dean BracewellIndependent Non-Executive Director(Appo

295、inted 20 April 2020)Health,Safety&Security Committee ChairLaurissa CooneyBMS(Hons),FCA,CMInstDIndependent Non-Executive Director(Appointed 1 October 2019)People,Remuneration&Diversity Committee ChairLarry De ShonBA Communications,BA SociologyIndependent Non-Executive Director(Appointed 20 April 2020

296、)Alison GerryBMS(Hons),MAppFinIndependent Non-Executive Director (Appointed 28 October 2021)Audit&Risk Committee ChairPaul GoulterLLB,MA(Hons),BAIndependent Non-Executive Director (Appointed 28 October 2021,and retiring late September 2024)ResidenceOffshore1Auckland1Regional3Other main centre2Corpor

297、ate Governance StatementAIR NEW ZEALANDANNUAL REPORT 2024AIR NEW ZEALAND GROUP3736IndependenceThe Board has identified criteria in its Charter,against which it evaluates the independence of directors in line with the NZX Listing Rules.These are designed to ensure directors are not unduly influenced

298、in their decisions and activities by any personal,family or business interests.All directors have been determined to be Independent Directors under these criteria,and for the purposes of the NZX Listing Rules.Directors are required to inform the Board of all relevant information which may affect the

299、ir independence such that the Board continually considers the independence of its members.The Board Charter makes explicit that the Chair and the Chief Executive Officer roles are separate.Director AppointmentsThere have been no new directors appointed during the 2024 financial year.The Boards appro

300、ach to appointing directors is depicted below.The Board as a whole considers the requirement for additional or replacement directors.EstablishmentAppointmentSuitabilityIdentificationNeeds Analysis Assessment of existing and desirable skills on the Board to fulfil its governance role and contribute t

301、o the long-term strategic direction of the Company Diversity considerations Identification of suitable candidates External consultants may be engaged Ensure constitutional requirements are met Ensure relevant independence criteria(including NZX Code)are satisfied Interviewing and reference checking

302、Formal letter of appointment outlining key terms and conditions of appointment Shareholder approval at next Annual Shareholders Meeting Induction Disclosure of Interests and agree conflicts management plans where relevant Committee assignments.Ongoing evaluation and developmentDirectors are expected

303、 to acquire a shareholding in the Company equivalent to 50 percent of the annual base director fee within 3 years of appointment.Dame Therese Walsh,Dean Bracewell,Laurissa Cooney,Alison Gerry,Paul Goulter and Larry De Shon have all met this threshold.Claudia Batten is expected to do so by the end of

304、 the 2025 financial year.Key Governance documents are available on the Air New Zealand website.These include:The Companys Code of Conduct and Ethics,stating the guiding principles of ethical and legal conduct,applicable to everyone working at or for Air New Zealand directors,executives,employees,con

305、tractors and agents;Charters for the Board and each of its Committees,detailing authorities,responsibilities,membership and operation;The Securities Trading Policy,identifying behaviours that could be illegal for individuals,or otherwise unacceptable or risky in relation to dealings in Air New Zeala

306、nds securities by directors,employees or their associated persons;The Continuous Disclosure Policy,addressing compliance with continuous disclosure obligations and the timely treatment of Material Information.Air New Zealands key Governance documents can be found at:airnewzealand.co.nz/corporate-gov

307、ernanceDiversity,Equity&InclusionThe Companys Diversity,Equity&Inclusion strategy recognises the value of a diverse workforce which is proudly representative of Aotearoa New Zealand,and aims to create an open,inclusive environment for our people,customers,whnau and communities to thrive.Overall,the

308、Board considers the Companys performance against this strategy has been consistent.The Board has also had input into and endorsed the recently refreshed strategy and will continue to regularly evaluate progress.Diversity is considered across a number of measures,including gender,ethnicity,disability

309、,age,and sexual identity.There is a focus on recruitment practices that promote the retention and attraction of diverse talent,as well as a broad range of employee initiatives to reflect,support and develop the diversity we have across the airline.Air New Zealands 10 Employee Networks play a key rol

310、e in supporting and advocating for employees and ensuring the success of the airlines Diversity,Equity&Inclusion strategy.With a target of 50 percent women in the senior leaders forum(which includes the Executive),the Company achieved 42 percent as at 30 June 2024.The Board will continue to monitor

311、this and is comfortable that the recent decline is not reflective of any systemic issues,and that recruitment,retention and management of talent pipelines are all operating well.The 50 percent target will be maintained for the 2025 financial year and there will be a continued focus on building a pip

312、eline of women leaders at all levels of leadership to help us achieve this.202220212024Female employees2020202360.0%50.0%40.0%30.0%20.0%10.0%0 All employees Senior Leaders Forum and ExecutiveAir New Zealand also has a target of 21 percent of the Companys people leadership roles being held by Mori an

313、d Pasifika employees by 2025;as at 30 June 2024 the result was 17 percent.The 21 percent target will be maintained for the 2025 financial year,with ongoing support for our graduates of our Mangpare leadership development programme,and continued focus on initiatives that support the recruitment,reten

314、tion and development of Mori and Pasifika talent.AS AT 30 JUNE20242023Directors(female:male:gender diverse)4:3:04:4:0Executive team(female:male:gender diverse)*4:6:04:6:0*The Executive Team comprises the Chief Executive Officer and direct reports to the Chief Executive Officer,and corresponds to“Off

315、icers”as defined in the Listing Rules.Continuous Disclosure Version 3.1 Continuous Disclosure 1.0 Intent 1.1 As a company listed on the New Zealand and Australian Stock Exchanges,Air New Zealand is bound by continuous disclosure obligations under the Listing Rules and the Financial Markets Conduct A

316、ct.Air New Zealand is committed to keeping the securities markets informed of Material Information relating to the Company and its financial products and promoting investor confidence by ensuring that trading in its financial products takes place in an efficient,well-informed market at all times.1.2

317、 The purpose of this Policy is to:a)Ensure that Air New Zealand complies with its continuous disclosure obligations;b)Ensure timely,accurate and complete information is provided to all shareholders and market participants;and c)Outline mandatory requirements and responsibilities in relation to the i

318、dentification,reporting,review and disclosure of Material Information relevant to Air New Zealand.1.3 For the purposes of this Policy,Material Information means any information that if it were generally available to the market,a reasonable person would expect to have a material effect on the price o

319、f Air New Zealands financial products.1.4 This Policy should be considered in conjunction with Air New Zealands Securities Trading Policy,which deals with the trading of Air New Zealands financial products by Directors and employees of the Company and any other person in possession of Material Infor

320、mation relevant to Air New Zealand.S Se ec cu ur ri it ti ie es s T Tr ra ad di in ng g 1 1.0 0 I In nt te en nt t 1.1 This document details Air New Zealands policy on,and rules for dealing in the following Air New Zealand securities(“Company Securities”):Air New Zealand Ordinary Shares(“AIR”)Air Ne

321、w Zealand Bonds(“AIR020”)Any other quoted financial products of Air New Zealand or its subsidiaries from time to time;and Any derivatives in respect of such quoted financial products from time to time.The requirements imposed by this Policy are separate from,and in addition to,the legal prohibitions

322、 on insider trading in New Zealand,Australia and any other country where the Company Securities may be listed.1.2 In addition to this Policy further more specific and stringent rules also apply to trading in Company Securities by those people identified as“Restricted Persons”,being Directors and cer

323、tain senior employees(see Appendix 1:Additional Trading Restrictions for Restricted Persons).Appendix 1 only applies to“Restricted Persons”.2 2.0 0 S Sc co op pe e 2.1 This is an Air New Zealand Group Policy which applies to all Directors,employees,contractors and other representatives of the Air Ne

324、w Zealand Group,collectively referred to as“employees”who intend to trade in Company Securities.2.2 To the extent of any inconsistency with any previous policy or rules relating to this subject matter,this Policy prevails over them.2.3 This Policy does not apply to:Acquisitions and disposals of Comp

325、any Securities by gift or inheritance;Acquisitions of Company Securities through an issue of new Company Securities,such as an issue of new shares under a rights issue or a dividend reinvestment plan.2.4 In this Policy trade includes buying or selling Company Securities,or agreeing to do so,whether

326、or not the Company Securities are held or received in the name of an employee,a family member,a trust of which an employee is a trustee or any company which an employee controls.Our Code of Conduct and EthicsONE AIR NEW ZEALAND DOING WHATS RIGHTLAST UPDATED:NOVEMBER 2021Corporate Governance Statemen

327、t(continued)Laurissa Cooney discusses the activities of the People,Remuneration&Diversity Committee:https:/youtu.be/dw9CsF7l-tAAIR NEW ZEALANDANNUAL REPORT 2024AIR NEW ZEALAND GROUP3938Gender balance Executive 3 year average Male Female202420232022100.0%90.0%80.0%70.0%60.0%50.0%40.0%30.0%20.0%10.0%0

328、202420232022Gender balance Board100.0%90.0%80.0%70.0%60.0%50.0%40.0%30.0%20.0%10.0%0 3 year average Male FemaleShareholder EngagementAir New Zealand is committed to regular dialogue and engagement with shareholders and utilises a number of channels to communicate relevant information.Disclosure of m

329、aterial information is made first and foremost through announcements to the NZX and ASX.In accordance with legislation,the Constitution and the Listing Rules,Air New Zealand also refers any significant matters to shareholders for approval at a shareholder meeting.The airline maintains an investor ce

330、ntre,which can be found on the Air New Zealand website.This contains many resources for shareholders including information about the airlines operations,its current and historical financial performance,shareholder meeting materials as well as key governance information and group policies.This years

331、Annual Report can also be found on this website including,effective from 29 August 2024,Air New Zealands first annual Climate Statement.Air New Zealands Investor Centre can be found at:airnewzealand.co.nz/investor-centreRegular Disclosures on Company PerformanceHybrid Annual Shareholders MeetingsInv

332、estor Day BriefingsWebcast Interim and Annual Results PresentationsAir New ZealandInvestor RelationsElectronic CommunicationsInvestor Centre WebsiteA comprehensive frequently asked questions section is maintained on the investor centre to assist shareholders with common questions.In addition,all sha

333、reholders can make enquiries regarding their investment via a dedicated Investor Relations email(investorairnz.co.nz).Shareholders also have the option to sign-up to receive email notifications of investor news via the investor centre website.The Company operates an investor relations programme with a dedicated Investor Relations team who manage scheduled interactions with investors,analysts and r