The national carrier of New Zealand has announced post-tax earnings of £41.7 million (NZ$92 million) for the year, from June 2009 to June 2010.
John Palmer, Air New Zealand's chairman, said the strong performance comes from product enhancements and improved services, as well as "process efficiencies".
The airline was the first in the world to launch an economy class lie-flat bed, dubbed the Skycouch, earlier this year.
The past 12 months have seen demand suppressed, however, admitted Palmer.
Operating revenue fell 12% last year, and passenger demand dropped 4.7%.
Over the coming year, the airline plans to introduce extra capacity, particularly on domestic routes.
Palmer said: "The board has strong confidence in the airline's ability to adapt to change and return stronger profitability in the medium term, while also recognising the need for preserving financial flexibility through this extended period of uncertainty."
The airline has a net cash position of NZ$1.1 billion (£498 million).
www.airnewzealand.co.uk