Air NZ profit takes off

AIR New Zealand increases its net profit for the year by $111m and says indications are that the 2014 result will be even better.

An Air New Zealand A320

NATIONAL carrier Air New Zealand has posted its best annual result in five years as its net profit jumped 156 per cent.

The airline recorded a profit after tax of $NZ182 million ($A159.69 million), $NZ111m on a year earlier.

Its earnings before tax was $NZ256m, an increase of 172 per cent.

The result placed places it among the best performing airlines globally, said chairman John Palmer.

"This result is one that investors, Air New Zealanders, customers and our nation can be proud of," he said.

Mr Palmer said it was focused on improving the result for the 2014 financial year and early signs were encouraging.

He said new chief executive Christopher Luxon and his management team were implementing a strategy to grow the airline.

Mr Luxon took over as the airline's head at the end of last year when Rob Fyfe stepped down after seven years at the helm.

Mr Palmer, who will step down as chairman in September, said the airline was spending $NZ1.8 billion on 21 new aircraft over the next three years.

"There can be no greater vote of confidence in the growth potential of the airline, and of the attractiveness of New Zealand as an international destination, than expanding and upgrading our fleet," he said.

Mr Luxton said the company was more customer-focused than it has ever been and said a 17 per cent growth year-on-year in its airpoints program showed customers liked its products and services.

Operating cash flow was at a record $NZ750m and it has cash holdings of $NZ1.15b.

It will pay a final dividend of five NZ cents per share taking the total dividend to eight NZ cents per share.