Christchurch International Airport annual result

Christchurch International Airport annual result

Christchurch International Airport Ltd's annual result was announced at the company's AGM on Monday, with an after tax net profit of $23.4 million, slightly down from $24.0 million in the previous year, and an operating revenue of $89.4 million.

CIAL's outgoing chairman, Syd Bradley, said the company was pleased with the result following a tumultuous year in the aviation industry, which saw the global aircraft shortage and escalation in the price of oil restrict airline and market growth potential.

"This result represents a significant achievement in such an environment and reflects the company's strategy of diversifying and growing our commercial business operations to alleviate the pressure caused by the fluctuating aviation environment", he said.

Mr Bradley said that the airport company is entering a period of change as it focuses on development of its commercial and property portfolios, while continuing to grow the aeronautical side of the business. "We have a number of opportunities to grow our non-aeronautical revenue streams, which will mitigate the variable returns we receive from aeronautical activity. These opportunities will future proof the business to ensure that a suitable financial return continues to be provided to our shareholders, despite the increasingly volatile aviation environment in which we operate", said Mr Bradley.

Operating performance (EBITDA) at $52.8 million was $5.5 million (+11.5%) over 2007, reflecting revenues from improved aircraft and passenger departure charges, a favourable uplift in retail and car parking revenues, and improved concession returns. However, these gains were partially offset by an increase in depreciation charges arising from the revaluation of assets at 30 June 2007.

Mr Bradley noted that CIAL had continued to experience growth in passenger numbers throughout the year, resulting in a 7.7% increase in total passenger numbers over the previous year, at 5,905,211. "The entry of Pacific Blue into the domestic market in November 2007 supplied a boost to tourism within New Zealand, resulting in a 9% increase in domestic passengers. Additionally, CIAL experienced consistent, record growth in international passenger volumes throughout the year, at 4.3% over 2007, providing a real boost to our position as New Zealand's tourism gateway," he said.

The AGM saw the appointment of David Mackenzie as chairman of CIAL following the retirement of Mr Bradley. A former commercial law partner and chairman of one of New Zealand's major law firms, David Mackenzie is now an independent consultant and company director.

Christchurch City Holdings Ltd (CCHL) chief executive Bob Lineham said CCHL was delighted to secure David Mackenzie for this important role, leading CIAL through an important and challenging development phase with the building of the new integrated terminal building and other developments at Christchurch Airport.

"David has excellent commercial and leadership skills and has substantial specialist experience and knowledge in the aviation sector," Bob Lineham said. "Syd Bradley, the current chairman, has served the company well over a period of nine years and will now step down from the position at the end of his third term," he said.

Copies of the CIAL annual report are available at christchurchairport.co.nz

Year Total passenger numbers
2008 5,905,211
2007 5,484,570
2006 5,472,162
2005 5,556,325
2004 5,136,075
2003 4,593,219
2002 4,219,518

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