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) has materially upgraded its 1H23 earnings guidance as (1) passenger demand remains strong, thereby boosting yields on constrained capacity, and (2) easing fuel price pressures</li><li>Passenger yields and RASK (revenue per available seat km) remain significantly higher than pre-pandemic, given the slower recovery in supply compared to buoyant demand.</li><li>As capacity returns we expect yields to fall but this is more likely to feature in FY24 than dampen the earnings recovery in 2H23</li></ul>

Air New Zealand (AIR) has materially upgraded its 1H23 earnings guidance as (1) passenger demand remains strong, thereby boosting yields on constrained capacity, and (2) easing fuel price pressuresPassenger yields and RASK (revenue per available seat km) remain significantly higher than pre-pandemic, given the slower recovery in supply compared to buoyant demand.As capacity returns we expect yields to fall but this is more likely to feature in FY24 than dampen the earnings recovery in 2H23

Air New Zealand: Yields Cruising at High Altitude