In its full-year results for 2016 the carrier reported net profit after taxation of NZ$463 million in the year to June 30.
Operating revenue was reported at NZ$5.2 billion, up 6.2%.
The ordinary dividend for the year increased 25% to NZ$0.20 and a special dividend of NZ$0.25 was also paid in the period.
The board has awarded a Company Performance Bonus of up to NZ$2,500 that will be paid next week to 8,200 Air New Zealand staff.
Chairman Tony Carter said: “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.”
Chief executive Christopher Luxon added: “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 supercharging New Zealand’s success.
“Alongside connecting New Zealanders and Kiwi businesses with each other and the world, we employ 11,300 staff, will pay the government around $260 million in total dividends and will pay income tax of around $200 million for the year.”
Looking ahead, Luxon acknowledged there is increased competition as other international airlines also add capacity.
“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,” he said.
The airline expects earnings before taxation for the full year 2017 to be in the range of $400 million to $600 million.
