Photo: RNZ / Nate McKinnon

Passengers should expect airfares to increase by 5 percent soon to meet increasing costs, says outgoing Air New Zealand chief executive Greg Foran.

The message came as the airline's profit fell on the back of soft demand and continuing engine maintenance and plane supply problems.

Air New Zealand has reported a profit of $126m for the year ended June compared with $146m a year earlier.

Key numbers for the 12 months ended June compared w

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