Air New Zealand has earned a tick of approval from brokers after updating the market on fuel statistics and traffic statistics.
Craigs Investment Partners broker Chris Timms said Craigs had updated its forecasts to reflect the latest updates.
Year-to-date capacity discipline and strong demand had driven high load factors and positive yield growth.
"These factors are contributing to operating earnings momentum, albeit with unfavourable currency hedging and rising fuel costs providing a slight headwind."
Forecast revisions, reflecting operating statistics and the impact of the Rugby World Cup, boosted the net tangible asset and target price to $1.64 a share, with a potential up-side, he said.
Air NZ shares had traded in a range of $1.02 to $1.49 in the past 12 months.
The national airline said it carried 1.05 million passengers in November, up 11% on the same month last year, but group-wide yields rose by 4.1%.
The airline said there was good demand for its new "seats to suit" product on Tasman and Pacific routes.
Revenue per passenger kilometres rose 13.3%, which drove a 3.4% increase in load factor to 83.3%.
But short haul yields were down 1.3%, partly due to the new seats to suit product.
Long haul yields were up by 9.8%.
Removing the impact of foreign exchange, group-wide yields were up 6.9%.
The airline increased capacity by 3.9% in November from a year ago and revenue per passenger kilometres rose 6.5%.
Overall, the group load factor increased by 2%.
Demand increased in the domestic market by 12.9% on last year and the load factor rose by 5.5% to 83% on a capacity increase of 5.5%.
Short haul passenger numbers rose 12.4% and long haul passengers by 1.6%.
Two days before bringing its innovative "SkyCouch" seats to New Zealand to launch the so-called "cuddle-class", Air NZ said it had discussed plans to sell the economy seat design to other carriers.
Chief executive Rob Fyfe said he was "hopeful" the airline would be able to license intellectual property for the lie-flat seats, the Sydney Morning Herald reported.
Air NZ group general manager Ed Sims said the carrier had kept the seat design for its own use for the first 18 months and would not sell the design to major competitors.
"We also have a list of airlines we would never sell it to, because it would give them too much competitive advantage," Mr Sims said.
Air NZ would next week receive the first Boeing 777 fitted with the SkyCouch system, which enables three coach-class seats to be converted into a lie-flat bed.
"The challenge I set was to find a way to allow economy passengers to sleep without changing the configuration of the cabin or changing the dimensions of the seat," Mr Fyfe said.
The seats would make their first journey on December 22 from Seattle to New Zealand on a Boeing 777, and Mr Sims said the carrier expected to recoup its investment in less than two years.
Bookings for the SkyCouch were in line with traditional seats on the company's website, Mr Fyfe said.
"We are expecting that will lead to superior seat yields."
The economy seats have armrests that disappear into the back of the seat, and a footrest comes out from under each of the three seats that can be pulled up to create a flat, flexible space, marketed as a flying couch, or a narrow double bed.
