State-owned air traffic controller Airways New Zealand posted a 10.3 per cent drop in full year profit to $8.2 million in the year to June.
That saw the Government pocket a dividend of $10 million, $2 million less than last year.
Revenue of $128.3 million was 3.5 per cent higher,
due largely to increased competition between airlines flying across the Tasman, especially among Air New Zealand, Emirates Airline and Pacific Blue, chief executive Ashley Smout said.
Domestic air traffic rose just 1 per cent. Last year traffic rose 6 per cent on the back of Air New Zealand's Express class and strong economic growth.
Expenses were $4.3 million higher, due largely to a 7.5 per cent increase in labour costs. Airways estimated that it was saving the New Zealand aviation industry $20 million in fuel costs through more efficient traffic flow procedures, Mr Smout said.
"The last two years have seen exceptional growth, and while we are unlikely to see a repeat of the business conditions enjoyed in 2004-2005, we can look with confidence towards the year ahead," Mr Smout said.
The total number of staff earning more than $100,000 increased to 353 from 337. Mr Smout received a salary of between $400,000 and $410,000, compared with about $380,000 last year.
- NZPA
