Air New Zealand, the little airline that can, triples its FY2012 profit and 10-year average earnings

Air New Zealand looks set to deliver on its objective to more than double earnings for FY2013, saying it is on track to achieve underlying earnings in at the "upper end" of the NZD235 million to NZD260 million (USD209 million) guidance provided in Apr-2013. If achieved, the result will nearly triple the FY2012 profit of NZD91 million (USD73 million) and build on the 300% improvement reported in the first half of the financial year.

Air NZ puts the improved performance down to a stable operating environment as well as changes to its long-haul network which has returned to profit for the first time since the global financial crisis. It is now focusing on forging deeper alliances to support its Pacific Rim network expansion plans.

In a surprise move, Air NZ also reinforced its hold on trans-Tasman alliance partner Virgin Australia by increasing its shareholding to just short of 23% and plans to creep to 26% in six months, thereby securing a strategic blocking stake over fellow shareholding partners Singapore Airlines and Etihad.