Queenstown Airport to pay $5.3m interim dividend

Queenstown Airport will pay shareholders an interim dividend of $5.3 million after a strong start to the current financial year.

More than 1.264 million passengers have passed through the airport in the past 6 months to 31 December 2023, an increase of 3.3% on the same period last year and very close to pre-COVID numbers.

Queenstown Airport Corporation (QAC) revenue and profit for the first half of the financial year were up 10% compared with the same period the previous year.

QAC, which released its half year report today, will pay major shareholder Queenstown Lakes District Council (QLDC) as its major shareholder [75.01%] $4 million.  

QLDC holds 75.01% of QAC shares, with the remainder held by Auckland International Airport Ltd.

Releasing the interim report for the six months to 31 December 2023, Queenstown Airport Corporation Chair Adrienne Young-Cooper said the business had started the financial year well, with sustained demand for travel to and from Queenstown, especially on trans-Tasman routes, resulting in a strong financial performance.

Revenue and profit for the first half of the financial year were up 10% compared with the same period the previous year.

“It is pleasing to have established a cadence again after the upheaval caused by the COVID-19 pandemic,” Mrs Young-Cooper said.

She noted domestic capacity was constrained during the reporting period after Pratt & Whitney engine issues necessitated changes to Air New Zealand’s flight schedules. “This was balanced by growth in international passenger numbers, which underscores the enduring appeal of this region to the Australian market.”

Queenstown Airport Chief Executive Glen Sowry said good progress had been made on other key areas of focus, including long-term planning, the terminal upgrade programme, and projects to improve resilience, customer experience, and operational efficiency.

“Our significant investment in extra self-service kiosks and automated bag drops has sped up passenger processing and dramatically reduced congestion at the check-in area during peak times. It is an excellent example of how we are using technology to make the journey through Queenstown Airport smoother.

“We’ve also made changes behind the scenes, working with airlines to introduce slot coordination to better manage flight arrivals and departures, and establishing an integrated operations centre. These changes have increased operational efficiency and flexibility, which was particularly helpful during the Christmas-New Year peak.”

The number of domestic travellers was down 5.4% on 2022 numbers while the number of travellers on international flights was up 22% on 2022.

On the outlook for the reminder of the financial year, Mrs Young-Cooper was also upbeat.  “We expect passenger numbers to remain strong over the next six months, producing steady revenue and delivering a solid full-year result.”

A record full year dividend payment of $15.54 million was paid to shareholders in August 2023.

Mr Sowry said a significant milestone during the reporting period was the completion of our Master Plan to guide the development of Queenstown Airport over the coming decades.

“Consultation on a draft version of the plan gave us a valuable opportunity to talk to people across the Southern Lakes region about how we can develop an airport we can all be proud of and that meets the needs of the communities we serve, far into the future.

“The deep interest in our work reinforced what a vital role the airport plays as a social and economic enabler.

“It also highlighted how important it is that we protect what makes ZQN unique, while improving our infrastructure and operational efficiency.”

The business’s focus for the rest of the financial year would be detailed planning for a capital works programme to deliver on the Master Plan.

Key highlights

• Passenger movements totalled 1,264, 306 [up 3.3%]
• Revenue total of 33.0 million [up 10%]
• EBITDA total of $24.1m [up 7%]
• Interim Dividend $5.3 million