Sound Progress In Airport’s 60th Anniversary Year, But Economic Headwinds Dampen Outlook

Hawke’s Bay Airport today released its FY2024 Annual Report, covering the 12 months to 30 June 2024.

Chair Wendie Harvey says the airport has made sound progress, with continued growth in financial performance, improved delivery of projects and customer experience, and wider engagement and collaboration with the airport’s communities.

“In our 60th year it is important that to reflect on our history, which has collaboration at its heart. Collaboration and partnership are as important today as they were 60 years ago as we focus on delivering a sustainable and resilient airport now, and into the future.

“I am very proud of the airport’s place in Hawke’s Bay, and of our very good people – airport team, ambassadors, and directors - who do their very best to ensure the airport’s continued success.”

Key highlights for FY2024

• 2.4% increase in passenger numbers (up from 640k to 655k)
• 3% increase in revenue (up from $12.7m to $13.0m)
• EBITDA $7.3m in line with Statement of Intent
• Awarded medium airport of the year in September 2023 for the second year running – and two other NZ Airports’ Association awards
• Completion of apron overlay resealing project
• Retained ACA Level 4+ transition sustainability rating

Passenger numbers increased during the year, but growth was noticeably slower (in line with expectations) and compared to the prior year where there was a noticeable increase related to post Cyclone Gabrielle air travel.

The current cost of living crisis is starting to have an impact, says Mrs Harvey.

“There has been a notable shift in consumer confidence and the propensity for travel. During the final quarter (Apr-Jun) we noticed a decrease in both capacity and demand, across the country.

“Hawke’s Bay is an attractive destination for both domestic and international visitors, and we remain confident in the economic resilience of the region, and in our ongoing engagement with our largest customer, Air New Zealand. We will continue to advocate for passenger services to and from Hawke’s Bay which are so important to regional growth and economic prosperity.”

Revenue increased by 3%, and EBITDA (Earnings before interest, taxation, depreciation and amortisation, a measure of profit) was $7.3m meeting the expectations set in the airport’s Statement of Intent.

Other achievements and progress during the year included:

• Civil Aviation Authority (CAA) Part 139 recertification, essential for the Airport’s operations.
• Official designation as a ‘place of first arrival’, for both Customs and MPI, permitting international private jets with up to 14 passengers to arrive directly into Hawke’s Bay. This helps to support Hawke’s Bay an attractive destination for high-value international visitors.

In April, regional airline Sunair launched a new connection to Hamilton, and in June, Hawke’s Bay hosted the Australasian Airports Roundtable, an influential event for airports and airlines, providing insights into the future of aviation in this part of the world.

A major focus this year has been the development of data strategies, providing insights into every aspect of the Airport, paving the way to improve services and reporting, says Mrs Harvey.

“In March a new customer insights tool launched, capturing opt-in data from arriving and departing airport customers. The results are already providing greater insight and directing future improvements in seating areas, children’s facilities, workstations, and enhanced connectivity and charging options.”

In capital works, the apron overlay project was completed in record time, the valet wash bay extension commenced after it was put on hold in 2020, and approval was given to progress construction of the Airport’s new fire station which will increase operational resilience.

“Across the Airport, we are strengthening the foundation of our operations to not only meet, but exceed regulatory standards, while at the same time maintaining and building resilience into our infrastructure.

“Going forward, we want to ensure that Hawke’s Bay Airport upholds the highest standards to remain a trusted and reliable gateway for air travellers and visitors, and generate returns for our shareholders, ” says Mrs Harvey.

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