Profits, passenger numbers soar at Queenstown Airport

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The Wakatipu stands to receive $1.95 million from the latest dividend released by Queenstown Airport, following a record after-tax net profit.

Driven by a huge increase in passenger numbers, net profit after tax for the year ended June 30, 2012, was $5.2m, up 13.3 per cent from $4.6m the previous year, the airport has announced.

Queenstown Airport Corporation’s board will pay a final dividend of $2.6m to its shareholders Queenstown Lakes District Council, which holds a 75.1 per cent share, and Auckland International Airport Ltd (24.9 per cent).

The latest amount brings the total dividend for the financial year to $3.6m, after a $1m dividend in January this year.

Top line revenue increased by 12 per cent to $17.5m and the earnings before interest, tax, depreciation and amortisation (EBITDA) was strong at $11.5m – a 16.7 per cent increase over the EBITDA of $9.9, for the previous financial year.

“This solid performance has been driven by the strong increase in passenger numbers,” QAC chairman John Gilks says.

“The airport saw a record 1,047,044 scheduled passengers travel. International passengers were up 21.2 per cent to 195,249 while domestic passenger numbers rose 11.6 per cent to 851,795.”

Seat capacity in an out of Queenstown for the financial period increased by 24.8 per cent to 1,365,000.

Revenue from commercial activities, such as retail, rental cars and car parking, also rose 11.5 per cent.

The strategic alliance between Queenstown Airport and Auckland Airport continued to benefit both parties, Gilks adds.

“Access to greater aeronautical expertise, more competitive insurance rates, more ‘buying power’ in procurement projects, as well as increased exposure of Queenstown in Auckland Airport’s international marketing campaigns, are some of the initiatives benefitting Queenstown Airport.

“The board feels confident that the strategic alliance will continue to create opportunities for increased passenger numbers, improved operating efficiency and profitability and enhance shareholder and community value.”