Air New Zealand has today announced the second highest profit in the airline’s history of $382 million after taxation.
Airbus A321neo in Air New Zealand livery
The airline earned $527 million in the 2017 financial year, slightly lower than last year's record of $663 million.
Chairman Tony Carter praised the strong result, announcing a full year declared dividend of 21.0 cents per share to shareholders.
"Based on the airline’s strong financial position, future capital commitments and improving trading environment, the board felt it appropriate to increase the dividend," says Mr Carter.
In recognition of the result, staff bonuses of up to $1,700 will be paid next week to approximately 8,500 of the Air New Zealand workforce.
The airline's 2016 record profit financial year came off the back of higher passenger numbers due to a tourism boom and lower fuel prices.
Chief executive Christopher Luxon said 2017 was a productive year considering the challenges posed by competitors.
"This year Air New Zealand faced an unprecedented increase in the level of competition from some of the world’s largest airlines and effectively rose to the challenge," Luxon said.
The profit margin caps off a successful 12 months for Air New Zealand, who carried 16 million passengers last year - an overall passenger capacity increase of 6.3 per cent.
The airline was also awarded New Zealand’s Most Attractive Employer for 2017.
In the coming year, Air New Zealand will focus on expanding into the Japan market, with the addition of a Haneda destination, as well as increasing services during peak season across routes in the Pacific Islands and North and South America.