Air New Zealand has announced a profit of $540 million, the second highest in the airline’s history. The result is second only to the $663m profit recorded in the year ended June 30 2016.
Air New Zealand’s net profit was $390m while its group revenue was up seven per cent at $5.6 billion.
The airline had witnessed a six per cent increase in passenger numbers on the previous year after carrying nearly 17 million people.
Domestic and trans-Tasman routes experienced the strongest growth while there were softer conditions on long-haul flights.
The higher passenger numbers offset a $135 million increase in the fuel bill, which was reduced by hedging contracts.
Chairman Tony Carter said that this is an impressive financial result, driven by strong revenue growth across the airline’s key markets, as well as continued focus on sustainable cost improvement, despite significantly higher fuel prices.
Chief executive Christopher Luxon said the airline was going to lease three plans and rejig schedules on several routes to improve reliability.
He then went on to add that such disruptions have resulted in a level of service for some that did not meet the high standards that they have set for themselves.
He also said Air New Zealand would offer more cheap fares than ever over the next year as domestic jet capacity grows.
Staff will receive a bonus of up to $1800.
