Airport millions for Queenstown
Queenstown Airport will pay shareholders a record annual dividend of $15.54 million after a strong recovery during the past financial year.
More than 2.3 million passengers have passed through the airport in the past 12 months to 30 June 2023, catching 17,714 scheduled flights.
That has enabled Queenstown Airport Corporation (QAC) to bring in $59.6m in revenue for a net profit after tax of $22.2m.
QAC, which released its annual report today, will pay major shareholder Queenstown Lakes District Council (QLDC) $11.6m, which equates to nearly $390 per ratepayer.
QLDC holds 75.01% of QAC shares, with the remainder held by Auckland International Airport Ltd. An interim dividend payment of $5.98 million was paid to shareholders in February.
Board chair Adrienne Young-Cooper says the results reflect the steady return of passengers throughout the year.
“The impact of the Covid-19 pandemic and the related global and national response was significant," she says.
"Between March 2020 and April 2022, disruptions and change became the norm. During the reporting period, stability returned and all domestic and international routes are operating again.”
After years of very limited dividend payments, the board of directors is pleased to confirm this financial year's total, Young-Cooper says.
Operating expenditure was comparatively low during the reporting period, she says, due to reduced budgets in place at the start of FY23 in response to the COVID-19 pandemic.
"During the second half of the year, as more certainty returned, operating expenditure increased to normalised levels."
Passenger and aircraft movements now back on par with FY19, and general aviation operators based at the airport also reported a strong recovery over the year.
Slot coordination was introduced for during the reporting period, enabling better distribution of flights throughout the day.
Chief executive Glen Sowry says QAC has increased airport staff numbers by about a third over the year, while capital expenditure focused on safety, sustainability and efficiency gains.
These include an integrated operations centre, extra self-service and automated bag-drop technology in the check-in area, four solar-powered aircraft access ramps, and terminal upgrades.
"We are working hard to build a customer-centric culture, to deliver an exceptional customer experience, and to anticipate the needs of future travellers," Sowry says.
During the year, Queenstown Airport signed up to the globally recognised Airport Service Quality (ASQ) programme, which enables it to measure its performance against other airports internationally.
The company also released its 10-year Strategic Plan, followed by a draft Master Plan and community consultation. The results are expected soon.
"The airport plays a crucial role in enabling the economic and social wellbeing of our region and will be a lifeline utility in the event of a natural disaster, so long-term planning is essential," Sowry says.
The masterplan enables growth from 2.4m to 3.2m passengers over the next decade but also provides prepares the aerodrome for the possible decarbonisation of aviation.
Queenstown Airport itself is implementing Sustainability Strategy and associated decarbonisation roadmap.
"We are pleased to report we have progressed from Toitū carbon reduce certification to Toitū net carbonzero certification this year," Sowry says.
"We are actively working to reduce our operational emissions and have committed to certified 100% renewable electricity supply, and to elimination of non-emergency Scope 1 and 2 emissions by 2030."
A full sustainability report, incorporating climate-related disclosures, will be released in September.
FY23 snapshot
Total annual dividend to shareholders of $15.5m
Revenue of $59.6m
Net profit after tax (NPAT) of $22.2m
Earnings before interest, tax, depreciation and amortisation (EBITDA) of $43.9m
Scheduled aircraft movements totalled 17,714
Passenger movements totalled 2,370,488
$120,000 contribution to the community through QAC’s partnership programme
Toitū net carbonzero certification achieved
Queenstown Airport powered by 100% certified renewable electricity
65% reduction in operational greenhouse gas emissions since 2019
QAC board chair Adrienne Young-Cooper
QAC chief executive Glen Sowry
