Air New Zealand has announced earnings before other significant items and taxation for the 2016 financial year of $806 million, compared to $474 million in the prior year. Earnings before taxation were $663 million with net profit after taxation of $463 million, an increase of 40% and 42%, respectively.

Chairman Tony Carter says the airline’s staff are critical to its success. “We recognise the importance of working collaboratively with our unions through our High Performance Engagement programme to achieve results that benefit both our business and our people. This has been an important contributor to our ability to achieve efficiencies,” Mr Carter says.

Looking ahead, he acknowledges there is increased competition as other international airlines also add capacity in recognition of strong tourism demand for New Zealand. Given the uncertain impact of competition and based on the current market conditions, the airline expects earnings before taxation for the full year 2017 to be in the range of $400 million to $600 million.