The Kiwi flag carrier attributed the profits to “demand for air travel that exceeded expectations”, with domestic capacity at 94 per cent of pre-pandemic levels, its international network restored, and all its aircraft now flying again. The airline saw an operating revenue of $6.3 billion NZD for the year.

This is a turnaround from 2021–22, which saw Air New Zealand post a $725 million NZD loss before other significant items and taxation off the back of $2.7 billion NZD in revenue.

Chief executive officer Greg Foran celebrated the result, saying “A strong Air New Zealand is good for New Zealand”.

“Restoring services to 500 flights a day is not only good for Kiwis who’ve been able to take that long planned holiday, but it has also brought tourist dollars back to the regions and supports exporters who rely on regular air freight,” he said.

“We know increased costs and high demand have made flying more expensive. In the past year we put more aircraft and seats in the air, so there are more choices for customers which helps alleviate the cost of flying. At the same time, our own costs continue to rise and the reality is that airfares are unlikely to return to pre-pandemic levels.

“After several volatile years it’s great to be back in the black and standing on our own two feet especially given we have more than $3.5 billion in aircraft investment coming over the next five years.”

Accompanying the results was the news that the airline is buying two new 214-seat Airbus A321neos to operate trans-Tasman and Pacific Island routes. The aircraft are set to begin arriving from late 2024 and will add more than 9,000 seats per week to its network.

The Kiwi flag carrier already has 10 A321s, with another four already confirmed to be on order, alongside eight Boeing 787 Dreamliners and two ATR72-600. All are scheduled for delivery between 2024-2028.

Air New Zealand added that, more immediately, it would also introduce increased services on routes to and from Australia from October.