National Airline, Air Pacific has announced a recorded 620% increase in profits for the year ending March 2008.

Air Pacific Chairman Nalin Patel said that this is a record achievement for the airline with a profit before tax of $38.2 million compared to $5.3 million for the previous year with the group airlines carrying a record 994,000 passengers.

The net fuel costs for Air Pacific was $177.2 million, representing 33% of total expenditure and fuel costs were offset by hedge and currency gains and fuel saving practices introduced during the year.

Patel said the 2007/2008 year was extremely challenging for Air Pacific and the group and it incorporated a period of recovery and consolidation after the events of December 2006 and a poor first quarter which required heavily discounted airfares and numerous tactical campaigns.

He said passenger flow improved in the latter part of the year with growth experienced from North America, Australia, and the greatly expanded domestic and South Pacific operations of the group.

The chairman said New Zealand remains a challenging market whilst Japan and Canada have failed to achieve recovery and continue to be unprofitable.

Looking forward, Patel said bookings from the core markets of Australia and North America are showing growth. Air Pacific declared a dividend to shareholders of $12.46 million or 47.75 cents per share and a bonus payment to staff of 7% of base salary.