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Air New Zealand is warning that cheap fares may not last as it announced an almost doubling of its profit from the same period last year.
The national carrier has had to reduce staff by 5% and cut flights to lower costs.
It says only strong competition is keeping very cheap fares in the market.
"There is work for us to do to improve the profitability of the airline and I do think that some of the fare levels we have seen are not sustainable in the long-term," says Rob Fyfe, Air New Zealand chief executive.
Cost cutting saw the largely state owned company make a $56 million net profit in the six months to December, compared with $24 million a year earlier.
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