Christchurch Airport pays special dividend as record passengers drive 50% profit gain

Tuesday 5th September 2017

Christchurch International Airport will pay its Crown and council shareholders a special dividend after record passenger numbers helped drive a 50 percent gain in annual profit.

The South Island's major aerial gateway will pay a special dividend of $3.5 million on top of ordinary dividends of $34.8 million for the year ended June 30, due to a strong performance, it said in a statement. Christchurch City Council owns 75 percent of the airport and central government 25 percent.

Christchurch Airport lifted net profit to $64.6 million in the 12 months ended June 30 from $43.1 million a year earlier, eclipsing the $42.8 million projection in its latest statement of intent. Operating revenue gained 4.3 percent, although the airport didn't provide details, and passenger numbers rose to a new high of 6.57 million, up from 6.3 million in 2016.

"Our focus on growing the Australian market has shown results with new trans-Tasman services from Qantas to Melbourne and Brisbane commencing just before Christmas last year," chairman David Mackenzie said. "Pleasingly, this additional airline capacity coupled with our joint campaign with Tourism New Zealand saw Australian holiday arrivals into Christchurch grow 9 percent in the January to June 2017 period, continuing the strong recovery from the market after the earthquakes."

Like other airports, Christchurch has been enjoying the country's tourism boom and the gateway has plans to have 8.5 million passengers pass through its doors each year by 2025.

The airport's board is focused on how to adapt to new technology and changing consumer behaviour, and has signed up with HMI Technologies to trial the country's first autonomous electric vehicle, with a view to establishing whether or not there's a basis for a broader deployment of EVs for public transport on the hub's campus, Mackenzie said.

The company is also working with Chinese e-commerce firm Alibaba Group to see how local small businesses can generate more value from Chinese visitors, and also boost parcel volumes for air freight firms.

Mackenzie will step down as the airport's chair at the company's annual meeting next month and will be succeeded by fellow director Catherine Drayton.

(BusinessDesk)

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