Christchurch Airport lifts profit, pays record $31 mln dividend

Tuesday 6th September 2016

Christchurch International Airport, which is 75 percent owned by the city council, lifted annual profit 10 percent and increased its dividend payout to a record $31 million.

Net profit rose to $43 million in the 12 months ended June 30, from $39 million a year earlier, the company said in a statement. Operating revenue rose 5.4 percent to $161 million, as earnings before interest, taxation, depreciation and amortisation gained 11 percent to $103 million.

The airport will pay dividends of $31 million, or 90 percent of net profit, for 2016, up from $20.6 million, or 60 percent of net profit, in the previous year. The lift in dividend payout ratio was due to greater resilience in the business and a positive outlook, the company said.

Chief executive Malcolm Johns said he expects continued growth in passenger numbers in the next year, from 6.3 million in 2016 to between 6.6 and 6.7 million in 2017, with trans-Tasman airline capacity forecast to increase by around 15 percent and international long-haul capacity by around 20 percent.

Passenger movements rose 6.2 percent to 6.3 million in the latest year, as domestic traffic climbed 18 percent and international passenger numbers advanced 7 percent while airline seat availability increased 7 percent to 7.9 million due to new services starting throughout the year. The airport handled 29,000 tonnes of international air freight in 2016, up 4 percent on a year earlier.

“We have seen domestic airline capacity reach record levels, with Air New Zealand adding additional services between Auckland and Christchurch and also to the regions," Johns said. "This city has never been more connected to Auckland and Wellington, and the regions, than it is right now. Nor has it ever been more connected to the big airport hubs in Australia and Asia as it is right now."

Qantas's new services from Brisbane, Sydney and Melbourne will double its capacity at Christchurch over the next year, and the airport has worked with China Southern Airlines to establish a direct service to China and Asiana Airlines which will launch a direct service to Korea this summer, Johns said.

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 $7.8 million in dividends.

BusinessDesk.co.nz

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