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New Zealand’s national airline on Friday posted a record profit thanks to surging tourism and lower fuel costs, but warned it expected increased competition from rival international carriers in the year ahead.

Air New Zealand announced an after-tax profit of 463 million New Zealand dollars ($339 million) for the year ending June, an increase of 42 percent over the previous year. Revenue was up 6.2 percent over the previous year to NZ$5.2 billion.

A record 3.3 million people visited New Zealand in the year ending July, up 11 percent from a year earlier.

Air New Zealand Chief Executive Christopher Luxon said in a statement that competition is increasing because tourism to the South Pacific nation remains strong and lower fuel costs make the country a more viable destination for rivals.

Over the past year, the company has added routes to Houston, Argentina and Vietnam.

The company said 8,200 of its staff would get a special performance bonus of up to NZ$2,500 each.

Air New Zealand’s share price dipped slightly Friday to finish trading at NZ$2.22.

This article was from The Associated Press and was legally licensed through the NewsCred publisher network.

Photo Credit: Air New Zealand is riding high, but expects more intense competition soon. One of their aircraft is pictured here. Christian Junker / Flickr