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>We downgrade Air New Zealand (AIR) to UNDERPERFORM from NEUTRAL following a weak first-half trading update, which highlights the acute nature of its current challenges.</li><li>Revised guidance for a first-half PBT loss of -NZ$30m to -NZ$55m compares with previous guidance of at or below 2H25 PBT of NZ$34m.</li><li>We remain cautiously optimistic for a sequential improvement in 2H26 profitability given the early stages of an anticipated demand recovery and easing engine maintenance requirements.</li></ul>

We downgrade Air New Zealand (AIR) to UNDERPERFORM from NEUTRAL following a weak first-half trading update, which highlights the acute nature of its current challenges.Revised guidance for a first-half PBT loss of -NZ$30m to -NZ$55m compares with previous guidance of at or below 2H25 PBT of NZ$34m.We remain cautiously optimistic for a sequential improvement in 2H26 profitability given the early stages of an anticipated demand recovery and easing engine maintenance requirements.

Air New Zealand Nose Down, Lacking Thrust