Christchurch International Airport has lodged a record net profit of $26.8 million for the year ended June, up from last year's $14.7m.However, a deferred tax adjustment due to government changes to building depreciation tax rules meant the company was le
Christchurch International Airport has lodged a record net profit of $26.8 million for the year ended June, up from last year's $14.7m.
However, a deferred tax adjustment due to government changes to building depreciation tax rules meant the company was left with an after-tax deficit of $260,000.
"While we appreciate this abnormal adjustment is about complying with international accounting standards, the adjustment effectively wiped out this year's reported profit, for a tax liability that does not exist in a real sense," chairman David Mackenzie said.
The final result, following the technical adjustment, did not provide an accurate picture of the company's true financial performance, he said.
The company's operating revenue was $93.6m, up from $89.9m the previous year, and it will pay a total dividend of $15.2m on this year's results.
Mr Mackenzie said the board was pleased with the company's performance and expected its sustainable long-term growth to continue.
"Of particular significance is the solid progress on the construction of the new integrated terminal and the ongoing improvements in environmental standards and activities. We have a very strong platform to continue to grow our business," he said.
Canterbury's earthquake on September 4 did not seem to have had a significant impact on the company and was not expected to affect the airport's medium-term outlook.
"I have been impressed with the response of the staff and the airport company in returning the airport to operational status so quickly in difficult circumstances," Mr Mackenzie said.
Chief executive Jim Boult said the company had achieved the greatest passenger throughput in any year, exceeding six million passengers for the first time.
A critical part of its growth strategy was the development of new long-haul routes, he added.
"Our aeronautical business development team works continuously with airline partners and new airlines to develop new long-haul routes. Our focus at the moment is on new services out of the Americas and Asia," Mr Boult said.
The company expected to announce new routes in the next 12 months.
"The long-awaited introduction of new generation aircraft such as the Boeing 787 and the Airbus A350 will be important factors in those markets," he said.
Mr Boult said it was important to maintain and grow the trans-Tasman market and the company's joint marketing ventures were widely acknowledged in the industry.
"Diversification is imperative to enable the company to develop stable revenue flows in the face of a volatile aviation industry. Our progress in this area is important as it means we are less reliant on aeronautical income which is easily affected by global economic and varying airline industry conditions," said Mr Boult.
