New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<ul><li>Air New Zealand (AIR) reported a material loss in FY26, but less-worse than its own guidance and market expectations.</li><li>Unfortunately, while this is good news in a relative sense, the situation has deteriorated for FY27, driven principally by higher-for-longer fuel costs, which are likely to see another step up over the next 12 months.</li><li>With AIR trading close to our forecast FY27 net tangible assets (~39 cents per share), when we think a discount is appropriate, we reiterate an UNDERPERFORM rating.</li></ul>

Air New Zealand (AIR) reported a material loss in FY26, but less-worse than its own guidance and market expectations.Unfortunately, while this is good news in a relative sense, the situation has deteriorated for FY27, driven principally by higher-for-longer fuel costs, which are likely to see another step up over the next 12 months.With AIR trading close to our forecast FY27 net tangible assets (~39 cents per share), when we think a discount is appropriate, we reiterate an UNDERPERFORM rating.

Air New Zealand FY26—Further Loss of Altitude to Come