Solid annual performance for Queenstown Airport Corporation

22 August 2018

Passenger demand and increased air capacity underpins solid annual performance for Queenstown Airport Corporation

- Revenue up 17% to $45.7 million
- Underlying profit up 21% to $14.9 million
- Reported profit up 24% to $14.9 million
- Aeronautical revenue up 14% and commercial revenue up 21%
- Over $4 million invested in safety, customer experience, innovation and technology
- $14.5 million invested in 100-year long-term lease for Wanaka Airport
- Growth in passenger numbers to 2,140,669 up 13%
- Annual dividend of $7.2 million paid to shareholders Queenstown Lakes District Council (QLDC) and Auckland Airport (AIAL)
- This equates to $5.4 million returned to the Queenstown Lakes District community- $215 per rateable property in the district.

Passenger demand and increased revenue helped Queenstown Airport Corporation achieve a solid underlying profit and reported profit for the year ended 30 June 2018.

Revenue increased by 17% to $45.7 million compared to the corresponding period last year and Reported Profit was $14.9 million, up by $2.9 million (24%). Underlying Net Profit After Tax for the period was $14.9 million, up 21% on the previous year.

Operating Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) increased by $5.5 million, or 21%, to $31.6 million compared to the corresponding period last year, while Operating Expenditure of $14.0 million increased $1.2 million (9%).

The airport’s two shareholders, Queenstown Lakes District Council (75.01%) and Auckland Airport (24.99%) received a combined dividend of $7.2 million. For the Queenstown Lakes District community this means a payment of $5.4 million- or $215 per rateable property in the district.

QAC Board Chair Prue Flacks said the company had invested over $4 million in infrastructure, safety, innovation and technology to streamline airport processes and systems and improve the park-to-plane experience for both customers and staff.

“We enhanced the customer experience with the launch of the Park and Ride, new wayfinding signage, and expanded pop-up food and beverage offerings, while investment in innovation and technology included a new safety management system, real time parking tracking, new flight information display screens (FIDS) and queue time monitoring at the security screening point.”

“Other major projects included the construction of a dedicated operations centre, terminal building improvements and new equipment which has streamlined operations. The $14.5 million long-term lease for Wanaka Airport was also a major investment.”

The two million passenger movements per annum milestone was reached for the first time in December 2017, driven by the region’s continued reputation as a world-class destination and increased air capacity.

A total of 2,140,669 passenger movements per annum was recorded, a 13% increase on the same period last year, with international passenger numbers up 12% to 596,276 and domestic passenger numbers up 14% to 1,544,393.

Commercial general aviation operators saw an increase in fixed wing and helicopter movements- up 6.9% on the same period last year - boosted by an active summer flying season. Private jet movements were equivalent to the previous year.

“The release of Queenstown Airport’s 30-year Master Plan options, combined with extensive community engagement, provided valuable feedback to assist in shaping the airport of the future. Work also continued on addressing the main constraints identified through the Master Plan process - land, noise and destination infrastructure.”

A comprehensive analysis of how the airport’s long-term growth forecasts could affect aircraft noise was completed and a noise plan change proposal released for public consultation in July 2018.

In addition, the signing of the 100-year lease for Wanaka Airport began a new chapter in the airport’s future, creating a platform to further plan for growth across the region.

“QAC’s success relies on many to deliver an exceptional experience for our customers. We’d like to thank our airport community, key stakeholders and the communities we serve for their continued support and confidence in the region as an attractive destination, as well as the innovative businesses and wider community for their ideas, feedback and support,” said Mrs Flacks.

“We will continue to focus on long-term planning and working together to ensure that future growth is managed and sustainable. Investment in regional infrastructure is critical to keep pace with growth and retaining a quality visitor and resident experience.”

“Looking forward 30 years can be challenging and we believe that our focus on planning and collaboration is critical in creating complementary aviation centres for our region that are sustainable, adaptable, affordable and memorable,” she added.

To view Queenstown Airport Corporation’s 2017-2018 Annual Report and Annual Profile, please visit www.queenstownairport.co.nz/company/planning-and-performance.

ENDS

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