Air New Zealand on Thursday recorded a large annual profit and announced its first dividend in more than three years, benefiting from a strong rebound in travel demand and lower jet fuel prices.

Air New Zealand declared a special dividend of 6 New Zealand cents per share, making it the first dividend since February 2020.

Demand for air travel has boomed since the removal of pandemic-related restrictions and border closures. A shortage of aircraft, parts and labour has also contributed to higher air fares globally.

For the year ended June, Air New Zealand posted earnings of NZ$585 million before tax and other significant items, compared with its forecast of no less than NZ$580 million.

It posted a loss of NZ$725 million a year earlier.

(Reporting by Nausheen Thusoo and Harish Sridharan in Bengaluru; Editing by Shailesh Kuber)