Media release from Queenstown Airport Corporation
21 February 2019
Queenstown Airport Corporation reports solid half-year result
Queenstown Airport Corporation (QAC) has delivered a solid result for the six months ended 31 December 2018, reporting a
Net Profit After Tax* of $8.3 million, down 6.3 percent compared with the same period last year, due to increased
interest and depreciation expenses.
Interest and depreciation expenses were higher by 14.8 percent due to major investments in key infrastructure projects
at Queenstown Airport, including a $7 million investment to fully resurface the aircraft parking area and the
commencement of a $20 plus million programme of works to increase the capacity of the terminal and related
infrastructure within the current footprint to accommodate a modest level of future growth.
Operating profit (Operating Earnings before Interest, Taxation, Depreciation & Amortisation) was $17.4 million, up 2.4 percent compared to the same period last year.
The result included contributions from both Queenstown and Wanaka airports, following QAC’s signing of the 100-year
lease for Wanaka Airport in April 2018.
An interim dividend of $1.0 million was declared and paid to QAC’s two shareholders, with 75.01 percent payable to
Queenstown Lakes District Council and 24.99 percent to Auckland International Airport Ltd. QAC remains on target to
deliver a dividend for the full year in the range of $7.1 million to $7.5 million.
Between 1 July and 31 December 2018, total passenger numbers were 1,185,746, a 9 percent increase on the comparable
period in FY18. International passenger numbers were 355,789, a 7 percent increase, and domestic passenger numbers were
829,957, which equated to an 11 percent increase.
Commercial general aviation movements at Queenstown Airport were slightly lower compared with the same period last year,
with fixed wing and helicopter landings down 4 percent due to inclement weather and operators up-gauging their fleets to
larger aircraft. Private jet landings increased by 7.3 percent.
QAC continued its excellent safety record, reporting no employee or contractor Lost Time Injuries. To support this
record, a number of health, safety and security initiatives were implemented or improved. These included a new weather
warning system providing automated advice on wind and severe weather conditions around Queenstown Airport. Further
emergency response training and CIMS certification for staff, a new e-learning platform to streamline and improve the
efficiency of health, safety and security training, and new cyber security measures were also implemented.
QAC Board Chair Prue Flacks said the organisation’s half-year result was driven by strong performance across the
business and underpinned by the continued appeal of the Southern Lakes region as an attractive place to live, work and
visit.
“Queenstown and Wanaka airports are part of a national network of critical infrastructure assets which connect residents
and visitors to the Southern Lakes region. QAC is responsible for managing these strategic assets on behalf of its two
shareholders to ensure they are financially viable and sustainable, generate appropriate returns on assets, and
contribute to the region’s economic development and the wellbeing of its communities,” said Ms Flacks.
“To achieve this, we must continue to plan long-term for sustainable growth and appropriately invest in infrastructure
ahead of the curve to maintain the highest levels of safety, efficiency and customer service. The significant planning
work we are currently undertaking for both airports will provide a robust and integrated roadmap to support the
infrastructure required to deliver air services to the Southern Lakes region over the next 30 years.
“We are mindful that this work cannot be done in isolation and are committed to working with all our key stakeholders –
including the council, local communities, business communities, airport communities, teams, shareholders, airline
customers, and national and regional organisations – to ensure that we are aligned and that our strategic roadmap takes
account of their feedback as well as the outputs from other long-term planning initiatives currently underway or being
considered,” said Ms Flacks.
ENDS