Air NZ H1 profits leap, yr profits seen higher

WELLINGTON, Feb 27 (Reuters) - Air New Zealand AIR.NZ reported a 40 percent rise in first-half profit on Thursday as passenger numbers grew, and said it expected to increase full year earnings.

The airline posted a net profit after tax of NZ$140 million ($116.2 million) compared with NZ$100 million a year ago.

Normalised earnings before tax were up 29 percent to NZ$180 million, and said it expected full-year earnings of more than NZ$300 million.

The New Zealand government reduced its stake in the airline to 53 percent from 73 percent last November, as part of its asset sale programme.

Air New Zealand declared a dividend of 4.5 cents a share, compared with 3 cents a share last year.

The national carrier owns just over a quarter of Virgin Australia VAH.AX , and in January unveiled a commercial alliance with Singapore Airlines Ltd SIAL.SI . ($1 = 1.2045 New Zealand dollars)

(Gyles Beckford)

((Gyles.Beckford@thomsonreuters.com)(+64 4 802 7977)(Reuters Messaging: gyles.beckford.reuters.com@reuters.net))

Keywords: AIRNZ RESULTS/