The Queenstown Airport Corporation (QAC) says it has continued ‘to build steadily on the successes of past years’ to report another strong financial performance for the year ended 30th June 2013, earning a net profit, after tax, of $5.3m for the year.

 

During the last 12 months QAC has completed a number of ‘key infrastructure projects’ including the expansion of the terminal to provide larger international departure facilities and a much larger Air NZ Koru Lounge.

 

“On the commercial front the new rental car concourse was completed and the first stage of the redevelopment to enhance the retail area was started with the opening of the revamped and expanded international Duty Free stores and The Remarkable Sweet Shop. All enhancements are expected to lift next year’s commercial performance,” said John Gilks, Chairman, Queenstown Airport Corporation.

 

“As in previous years the Company’s solid performance is based on strong passenger numbers,” said Gilks.

 

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The airport hosted 1,198,918 passengers, 14.5% more than in the previous financial year, reflecting increases in both domestic and international numbers. This increase in passenger numbers underpinned a 7.7% increase in revenue from $18.2m to $19.6m.

 

Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) was strong at $12.9m compared with $11.5m in the previous financial period.

 

The QAC reports a final dividend of $2.6m. The total dividends for the year ended June 30th, 2013, were $3.6m of which 75% is payable to Queenstown Lakes District Council and 25% to Auckland International Airport Limited. This 2013 dividend payable to Queenstown Lakes District Council equates to around $122 per rateable property.

 

“Queenstown’s appeal as a destination remains strong and all four airlines operating at Queenstown – Air New Zealand, Jetstar, Qantas and Virgin Australia – increased available seats (capacity),” adds QAC.

 

AUCKLAND AIRPORT

“Making available more seats through larger capacity aircraft and changing schedules characterised the year as the airlines had to be nimble to meet customer demand,” said Gilks.

 

“Air New Zealand saw an opportunity in winter to increase capacity on its Wellington route and during summer on the Auckland service. Jetstar realigned its schedule to increase capacity on international routes, reduce its Auckland service and suspend it Christchurch schedule.”

 

The relationship between Queenstown Airport and its strategic alliance partner, Auckland Airport, continues to be constructive and beneficial.

 

[Left: DFS operated store at Auckland Airport]

 

“As a larger airport Auckland has much more depth in knowledge and resources than Queenstown and has proven itself very willing and able to share these resources with Queenstown,” added Gilks.

 

“The Board is happy to report that the alliance is delivering benefits exceeding initial expectations.”

 

QAC says that Queenstown Airport continues to be viewed as a ‘desirable destination’ by both domestic and international travellers. This underpins the Directors expectation that growth in passenger numbers will continue in the future albeit at a rate which may not achieve the levels experienced in recent years.