Air New Zealand has achieved a record profit as passenger revenue increased and fuel cost fell.

The Star Alliance member made a pre-tax profit of NZ$663 million (£363 million) for the financial year to June 30, 2016, which was a 40 per cent improvement over the previous year.

Operating revenue rose by 6.2 per cent to NZ$5.2 billion (£2.9 billion) while fuel costs dropped by 22.3 per cent during the year.

Air New Zealand’s CEO Christopher Luxon said: “These are the best results ever in our 76-year history and I am extremely proud of the airline’s achievements, our people and the contribution we make to super charging New Zealand’s success.”

Luxton admitted that the airline was increasing competition on international routes.

But he added: “There’s no doubt customers have more choice but we are confident that we have the right pricing, products and services to stay a step ahead of the competition as we grow our business at home and overseas.”

Earlier this week, fellow Australasian carrier Qantas also announced record-breaking profit.



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