Christchurch Airport sees record numbers of passengers, lifts first-half profit

Christchurch International Airport, which is 75% owned by Christchurch City Council, posted a 13% lift in profit after a record number of passengers in the first half of the financial year.

Net profit rose to $18.3 million in the six months ended December 31, from $16.2 million a year earlier, the company said in a statement. Operating revenue rose 6.5% to $86.4 million, with aeronautical revenue up 6.4% to $42.5 million and non-aeronautical revenue rising 6.6% to $43.9 million.

The airport will pay an interim dividend of $16.4 million, up 13% on the year earlier. Total passenger movements rose 4.4% to 3.24 million, a first-half record.

Chief executive Malcolm Johns said the first six months have shown strong growth, with domestic passenger numbers up 3.2% but international passenger numbers rising about 8%.

"New or increased services from China Southern Airlines, Emirates A380, Qantas and Fiji Airways have increased our connections to key regional airport hubs and driven strong international visitor growth into the South Island and New Zealand," he said.

Johns said there had been a 53% growth in Hong Kong residents visiting, a 37% increase from Chinese nationals, 32% more Indonesians and 25% more visitors from Taiwan in the first half. The airport is also seeing more Chinese visitors within the "free independent traveller" category, who Mr Johns said were "younger, spending more and exploring more on our China services."

The company expects to see 6.7 million passengers in its full financial year, up from 6.3 million in 2016 and 5.9 million in 2015.

Christchurch Airport is among assets owned by Christchurch City Council's investment holding company, while the Minister of Finance and the Minister for State-Owned Enterprises each hold one-eighth, meaning the Crown will receive about $4.1 million in dividends.

(BusinessDesk)