Citing lower passenger traffic amidst the pressure-laden economy, Air New Zealand announced on Thursday that its full year earnings before tax for fiscal 2010 fell by six percent to $NZ137 million or $A108.98 million.

Also, the airline said that its operating revenue for the same year plummeted by as much as 12 percent en route to $NZ563 million or $A447.86 million though if the company's terminated freighter operations were factored out and the impact of a strong local currency was considered, the decline would only be eight percent.

Moreover, Air NZ said that passenger revenue slid by $NZ429 million or $A341.26 million during the past six months leading to end June, which the company attributed to retreats in yield and demand of 7.1 percent and 4.7 percent respectively.

The company said that stable fuel prices and lower operating costs gave the airline some breathing room yet "reduced demand combined with a fall in ticket prices significantly reduced passenger revenue."

Nevertheless, Air NZ said that this year's figures pointed to an overall net profit of $NZ82 million or $A64.23 million, which is almost four times better than the $NZ21 million or $A16.71 million posted last year.

From the results, the company said that it is set to issue a final dividend distribution of four cents per security, up from the 3.5 cents paid last year.