​The 74-percent state-owned airline posted a net profit after tax of NZ$182 million ($142.01 million) compared with NZ$71 million a year ago.

AirNew Zealand‘s normalized profit before tax, which excludes fluctuations in fuel hedging, rose to NZ$256 million from NZ$91 million a year ago, coming in at the upper end of guidance given in early June of between NZ$235 million and NZ$260 million.

The company declared a dividend of 3.0 cents per share, compared with 3.5 cents last year.

The airline, which owns just under 23 percent ofVirgin Australia Ltd, said it saw encouraging signs that it would be able to further improve profits in 2014.

AirNew Zealandis one of five state-owned assets, in which the New Zealand government is planning to sell minority stakes to raise up to NZ$7 billion so it can return to a budget surplus by 2015. (Reuters)