Air New Zealand has this morning 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 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.
"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," chairman Tony Carter said.
Chief executive Christopher Luxon said the airline was going to lease three plans and rejig schedules on several routes to improve reliability.
“While we are very proud of the financial achievements of the 2018 financial year, I want to acknowledge the patience and loyalty of our customers who have been impacted by operational disruptions while travelling with us this year,” Mr Luxon said.
“These disruptions have resulted in a level of service for some that did not meet the high standards we set for ourselves. We do not take our customers’ choice to fly with Air New Zealand for granted and remain focused on making improvements across all touch points of their travel journey.”
He also said Air New Zealand would offer more cheap fares than ever over the next year as domestic jet capacity grows.
“One of the benefits of a growing Air New Zealand is more opportunities than ever for Kiwis to snap up a bargain. In 2019, we will offer more than 2.9 million seats for travel in New Zealand for under $100,” Mr Luxon says.
Staff will receive a bonus of up to $1800.
Other key points:
• Investment of approximately $150 million expected over the next four years to enhance customer experience in key areas, including new cabin experience, digital products and lounges
• Commitment to third short term leased widebody aircraft to further assist with schedule reliability during ongoing maintenance requirements associated with the global Rolls-Royce Trent 1000 engine issues
• Staff bonuses of up to $1800 for all permanent employees who do not participate in a Short Term Incentive programme
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