Queenstown Airport full-year profit takes off by 13%
Seat capacity in and out of the resort for the financial period increased by 24.8% to 1.3 million.
Hot Topic
Rich List
BUSINESSDESK: Queenstown Airport posted a 13.3% gain in full-year profit after an increase in passenger numbers helped lift commercial activities such as retail, rental cars and car parking.
Profit lifted to $5.2 million in the 12 months ended June 30, from $4.6 million a year earlier, the company says. Sales rose 12% to $17.5 million.
The airport had a record 1.1 million scheduled passengers, made up of a 21% increase in international arrivals to 195,249 and an 11.6% gain in domestic passengers to 851,795.
"The solid performance is driven by the strong increase in passenger numbers," chairman John Gilks says.
"Looking ahead, Queenstown Airport is expecting future growth in aircraft and passenger volumes though it will be hard to repeat the double-digit growth rates experienced in the past year."
The increase in passenger numbers helped boost sales in commercial activities, including retail, rental car and car parking.
"Most retailers experienced good growth, and the demand and plans for expanded rental car operators and tenancies grew," Mr Gilk says.
"The opening of the new expanded Hertz Car Rental facility, the first commercial development by the airport outside the terminal in several years, was a highlight and will lift next year's commercial performance."
The board announced a dividend of $2.6 million, taking its total dividend payout to $3.6 million for the 2012 financial year.
Queenstown Lake District Council has a 75.1% controlling stake in the airport, while Auckland International Airport holds the remaining 24.9%.
Mr Gilks says the "strategic alliance" between the two airports continues to benefit both parties.
"Access to greater aeronautical expertise, more competitive insurance rates, more 'buying power' in procurement projects, as well as increased exposure of Queenstown in Auckland Airport's international marketing campaigns, are some of the initiatives benefiting Queenstown Airport."
Seat capacity in and out of Queenstown for the financial period increased by 24.8% to 1.3 million.
Shares in Auckland International Airport are down 0.8%, trading at $2.60. The stock has gained 2.4% this year. Its financial results are set for release tomorrow.
Hannah Lynch
Wed, 11 Jul 2018
Wed, 11 Jul 2018
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Queenstown Airport full-year profit takes off by 13%
23381