Queenstown Airport is to pay its shareholders an interim dividend
of $5.3 million.
As
the majority shareholder, the Queenstown Lakes District Council will receive
just under $4 million.
Releasing
the interim report for the six months to 31 December 2023, Queenstown Airport Corporation
Chair Adrienne Young-Cooper said the business had started the financial year
well, with sustained demand for travel to and from Queenstown, especially on trans-Tasman
routes, resulting in a strong financial performance.
Revenue
and profit for the first half of the financial year were up 10% compared with
the same period the previous year.
“It
is pleasing to have established a cadence again after the upheaval caused by
the COVID-19 pandemic,” Mrs Young-Cooper said.
She
noted domestic capacity was constrained during the reporting period after Pratt
& Whitney engine issues necessitated changes to Air New Zealnd’s flight
schedules.
“This
was balanced by growth in international passenger numbers, which underscores
the enduring appeal of this region to the Australian market.”
Passenger
movements (both arrivals and departures) for the period totalled 1,264,306 – up
3.3% on the first half of FY23 and very similar to pre-COVID numbers.
“We
expect passenger numbers to remain strong over the next six months, producing
steady revenue and delivering a solid full-year result.”
Queenstown
Airport Chief Executive Glen Sowry said good progress had been made on other
key areas of focus, including long-term planning, the terminal upgrade
programme, and projects to improve resilience, customer experience, and
operational efficiency.
“Our
significant investment in extra self-service kiosks and automated bag drops has
sped up passenger processing and dramatically reduced congestion at the
check-in area during peak times. It is an excellent example of how we are using
technology to make the journey through Queenstown Airport smoother.
“We’ve
also made changes behind the scenes, working with airlines to introduce slot
coordination to better manage arrivals and departures, and establishing an
integrated operations centre. These changes have increased operational
efficiency and flexibility, which was particularly helpful during the
Christmas-New Year peak.”
Mr
Sowry said a significant milestone during the reporting period was the
completion of a Master Plan to guide the development of Queenstown Airport over
the coming decades.
“Consultation
on a draft version of the plan gave us a valuable opportunity to talk to people
across the Southern Lakes region about how we can develop an airport we can all
be proud of and that meets the needs of the communities we serve, far into the
future.
“The
deep interest in our work reinforced what a vital role the airport plays as a
social and economic enabler.
“It also highlighted how important it is that we protect what makes ZQN unique, while improving our infrastructure and operational efficiency."
The business's focus for the rest of the financial year would be detailed planning for a capital works programme to deliver on the Master Plan.
The FY24 Interim Financial Report can be downloaded here.
