Air New Zealand has lifted its earnings before tax for the first half of the 2013 financial year by more than 300%.
Chairman John Palmer described the interim profit result as excellent progress when put against the backdrop of a sluggish economic recovery and ongoing challenges facing the airline industry.
Normalised earnings before tax were NZ$139 million, up from NZ$33 million in the previous corresponding period. After tax net profit increased NZ$62 million to NZ$100 million.
"This is the best interim profit result for five years. The substantial change programme the airline has been implementing has positioned the business for consistent growth and sustainable profitability over the coming years," Palmer said.
The company will lease two additional Boeing 777-300ER aircraft to join the fleet in 2014.
Chief executive Christopher Luxon said Air New Zealand had seen increased demand on its domestic routes, despite a slower than expected economic recovery.
"Our alliance with Virgin Australia is proving very successful, and our ownership interest of 19.99% reinforces this relationship," he added.
Luxon said for the first time since the financial crisis, Air NZ’s international long-haul part of the network was profitable.
"A key driver in achieving this turnaround has been getting our network right and improving our sales execution," he said.
