Share buyback FAQs

A share buyback is when a company repurchases its own shares from the market, at the prevailing share price, and subsequently cancels those shares. This reduces the total number of shares the company has on issue and increases the proportionate shareholding of remaining shareholders accordingly.

Shareholders can choose to participate simply by selling their shares as normal on the NZX or ASX via an approved broker or trading platform.

If a shareholder does not wish to participate, no action is required.

Air New Zealand has a strong balance sheet, with current levels of liquidity over and above the targets outlined in the airline's capital management framework.

Buybacks are also a tax-efficient way to distribute excess capital to shareholders when there is an insufficient imputation credit balance to fully impute a dividend, as is the case currently.

• The buyback comprises an on-market component and an off-market component to maintain the Crown's majority shareholding.
• Under the on-market component, Air New Zealand will, via a broker, purchase its own shares during regular NZX and ASX trading. Purchases will be made at the prevailing market price and are subject to daily restrictions such as maximum prices and trading volumes.
• The off-market portion will be undertaken once volumes for that day's on-market trading via the NZX and ASX are finalised. The Crown can sell the Company the number of shares required to maintain its current shareholding. Shares will be purchased at the volume-weighted average price of any on-market buyback shares, providing fairness to all shareholders.
• Air New Zealand will disclose its buyback activity, including volumes and prices, on a daily basis via NZX and ASX announcements.

All retail and institutional investors can sell their shares as normal on the NZX or ASX via an approved broker or trading platform. Air New Zealand will purchase shares via a broker from willing sellers at prevailing market prices.

Air New Zealand does not have the ability to purchase from or know the identity of the specific sellers from whom it is acquiring shares. Likewise, shareholders that elect to sell shares on any given day will not know if these have been bought by the airline as part of the share buyback programme, or if they have simply been purchased by another market participant.

Any specific questions on how to place selling orders should be directed to your broker.

If you do not sell, your percentage ownership in Air New Zealand will increase slightly as the buy-back progresses, as overall there will be fewer shares outstanding. The share buyback programme is for up to $100 million and will be in place for up to 12 months from announcement date, so the overall movement in individual shareholding percentages will not be known until the completion of the programme.

• Air New Zealand will buy shares day-to-day on NZX and ASX at the prevailing market price, subject to certain daily maximum price and volume restrictions.
• Shares bought back from the Crown will be at a volume-weighted average price of any on-market buyback shares, providing fairness to all shareholders.

• The buyback is in effect for up to 12 months from announcement. Air New Zealand has the ability, but not the obligation, to purchase shares on any trading day.
• Air New Zealand will not purchase any shares under the buy-back during any "blackout period", being from:
  • the end of the 2025 financial year on 30 June 2025 until the release of the FY25 results in August 2025, and
  • the end of the 2026 half year on 31 December 2025 until the release of those interim results in February 2026.

The total buyback is for up to $100 million.

• The buyback will be funded from existing cash reserves.
• Air New Zealand's credit metrics remain strong and are unlikely to be impacted by the buyback.

Yes. Throughout the buyback period, Air New Zealand will continue to assess market conditions, its share price, and all other relevant considerations. Air New Zealand reserves the right to suspend or terminate the buyback programme at any time.

Under the off-market buyback component, Air New Zealand will offer to acquire a corresponding number of shares held by the Crown, in order to maintain the Crown's shareholding in Air New Zealand.

• The Crown will participate in the off-market buy-back, but not the on-market buy-back.
• Without the off-market buy-back, the Crown's percentage holding in Air New Zealand would increase. The off-market buy-back component is just a way of matching the on-market acquisitions, so that the Crown can preserve its current shareholding percentage in the Company.
• Shares bought back from the Crown will be at a volume-weighted average price of any on-market buyback shares, providing fairness to all shareholders.

Investors can contact Air New Zealand Investor Relations at investor@airnz.co.nz.

Please note that we cannot provide financial, legal, tax or other professional advice. For personalised guidance and advice, please consult your financial advisor or broker.