Air New Zealand has reported a fourfold increase in profits, leading signs of recovery in the airline industry.

The flag carrier said net profits for the year to the end of June totalled 82m New Zealand dollars ($58m; £37m), up from NZ$21m in the previous year.

In a busy day for company reporting, airlines elsewhere in the world also delivered positive news.

Both Air China and Australian budget carrier Virgin Blue also reported a recovery in profits.

Air China, one of China’s three major state-owned airlines, said its profits in the first half of the year were up 60% on last year, when the global economic downturn hit passenger numbers.

Virgin Blue also reported a return to profit in the last 12 months.

Net profits for the year were up to 21m Australian dollars ($19m; £12m), the carrier said, following the A$160m loss recorded a year ago.
Passenger demand rises

But despite the improvement in profits, the airlines remain cautious over the outlook for the industry.