National carrier Air New Zealand capped off a busy year with significantly improved profits, dividends and cash flow for the year ended June 30.
Operating profit was up 26% to $898 million in the period, profit before tax was up 172% to $256 million and reported profit was up 156% to $182 million.
Revenue rose 3% to $4.62 billion and the final dividend of 5 cents per share took the total dividend to 8cps, up 45% on the previous corresponding period.
The Government, as majority owner, received $40.2 million in the interim dividend and $64 million for the year.
Operating cash flow was the highest ever at $750 million and the company reported cash holdings of $1.15 billion. Gearing improved 7% to 39.1%, a record low for the airline.
Air NZ's share price rose 3% yesterday to $1.41. At the same time last year, the share price was 89.5c. The former Labour government bailed out the airline, buying shares at 15c.
Chairman John Palmer said the result placed the airline among the best performing globally.
''We are focused on further improving on this result in the 2014 financial year. Based on the airline's forecast of market demand and fuel prices at current levels, early results and forward bookings are encouraging.''
The result was one investors, staff, customers and the nation could be proud of, he said. It marked the start of a new phase as chief executive Christopher Luxon and his team drove their ''Go Beyond'' strategy to grow the airline.
Mr Palmer will retire as chairman at the next annual meeting and be replaced by deputy chairman Tony Carter.
Craigs Investment Partners broker Chris Timms said the result was driven by increased passenger numbers but the configuration of the Air NZ planes had changed, allowing the airline to carry more passengers on each trip.
''This is an impressive lift in profit. Demand is good, they have boosted market share, cash flow is strong and debt is low. It has been a long road to this point but the company has made good progress.''
Technology had helped Air NZ reach the point it had, Mr Timms said.
At airports now, passengers could swipe to check in, deal with their own bags and book online. That increased efficiency and lowered costs.
The company did not provide guidance, but Mr Timms said it would not have committed to investing $1.8 billion in aircraft over the next three years if it was not confident about its future.
''They have made the commitment to continue improving the fleet. They wouldn't do that without being comfortable in their growth potential. These are the type of things you look for,'' he said.
Aircraft due to enter the Air NZ fleet over the next three years were: two Boeing 777-300ERs; six Boeing 787-9s; nine Airbus A3202; four ATR72-600s.
Earlier, the Government had indicated it was preparing to sell down its stake in Air NZ but Meridian Energy, followed by Genesis, appear the most likely to be partially sold down before the State's Air NZ holding is reduced.
Mr Luxon said the relentless focus on growing Air NZ was not confined to the passenger side of the airline. The cargo team delivered an ''outstanding result'' for the year against a tough industry backdrop.
