Queenstown Airport boosts profit 25%, as Qlders arrive ready to ski

Friday 21st August 2015

Queenstown Airport Corp, New Zealand's fourth busiest airport, boosted annual profit 25 percent, as trans-Tasman passenger numbers rose by a third and domestic passengers topped the million mark for the first time.

Profit rose to $8.3 million in the year ended June 30, from $6.6 million a year earlier, the airport said in a statement. Revenue climbed 13 percent to $24.8 million, while operating earnings before interest, tax, depreciation and amortisation increased 9 percent to $16.6 million.

The South Island's second busiest airport, which is 75.1 percent owned by Queenstown Lakes District Council and 24.9 percent by Auckland International Airport, will pay a record dividend of $5.2 million, up from $4.3 million a year earlier.

The airport is handling more passengers as it benefits from airlines such as Air New Zealand, Qantas Airways and its subsidiary, Jetstar, and Virgin Australia adding more flights and larger planes from Australia. The region is luring more visitors thanks to its snowfields and other outdoor adventure activities as well as events such as the annual Winter Festival, the New Zealand Golf Open and the inaugural Queenstown International Marathon.

Passengers passing through the gateway were up 12 percent to 1.4 million. Much of that lift came from Jetstar, which launched a three day a week service from the Australian Gold Coast in December, the airport said. International passengers were up 29 percent to 398,000 while domestic passengers increased 6 percent to 1 million. Its long and short haul private jet operations, servicing a growing number of high net worth global citizens putting Queenstown on their itinerary, increased 20 percent to 218 landings.

“Growth projections remain very strong and we are mindful that there will be a need to manage this growth in line with community expectations," said the airport company chairman, John Gilks. "We see the need for providers in the region to continue to invest in the region’s infrastructure and tourism facilities to maintain the quality of visitor experience and accommodate the anticipated growth from new and emerging long haul markets.

“Looking ahead, we remain confident about the sustainability of trans-Tasman growth. We anticipate strong future passenger growth but acknowledge it may not continue at the record levels seen during 2014/15," Gilks said.

The airport says future growth will rely on the success of its next large scale development, a new aviation precinct to boost capacity, accommodate the general Queenstown aviation industry and allow for "world-class private jet facilities". It is looking to acquire 16 hectares known as Lot 6 from its neighbouring developers, Remarkables Park, along the southern side of the airport, but said progress had been slow as a compulsory land acquisition process works its way through the Environment Court.

Some $3.4 million had been spent on the Lot 6 process at balance date. Short-term capacity constraints could be managed, but "in the medium term we face the very real prospects of the airport's ability to meet the growth needs of the community being severely restricted if Lot 6 is not secured."

It is also seeking permission for after-dark flying by winter 2016, which would reduce congestion around peak daylight hours and encourage weekend leisure travellers from Auckland and Australia in winter. Its after-dark flights foundation safety case was approved by the Civil Aviation Authority and the Civil Aviation Safety Authority in May 2014, and infrastructure work, including widening the runway and installing advanced aviation lighting systems will begin this summer.

BusinessDesk.co.nz

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