Queenstown Airport's $7m for shareholders
Queenstown Airport will pay a $7 million to its shareholders this month, reflecting a strong start to the year.
Some 1,343,006 passengers passed through the terminal in the first six months of the financial year, up 6%, with particularly strong trans-Tasman numbers.
The airport's revenue rose by 22% and profit jumped up 27%.
That means Queenstown Lakes District Council is set to bag $5.2m from the interim dividend as the the major shareholder [75.01%], with the rest going to shareholder Auckland International Airport.
Queenstown Airport Corporation generally makes two dividend payments per year to shareholders, with another at the end of the financial year on 30 June.
"Airport operations ran smoothly during the peak winter weeks and over the summer holidays, when record numbers of passengers travelled through the terminal – a testament to the hard work and professionalism of our team,” QAC chairman Simon Flood says.
"Over the coming years, we will complete the most significant capital investment programme in the airport’s 90-year history. A key strategic focus for the board of directors and executive team is the delivery of the Queenstown Airport Master Plan. Detailed development and organisational planning are under way.
"Capital investment planning, procurement, and programme delivery will continue in sequenced stages."
Interim results (unaudited) snapshot:
- Interim dividend of $7.0 million (75.01% to QLDC and 24.99% to Auckland International Airport Ltd)
- Revenue of $40.4 million
- Earnings before interest, tax, depreciation and amortisation (EBITDA) of $29.5 million
- Net profit after tax (NPAT) of $16.2 million
- Scheduled aircraft movements totalled 9,848
- Passenger movements totalled 1,343,006
- EMAS – $23 million airfield safety infrastructure project under way
- Airport Carbon Accreditation (ACA) Level 4+ certification achieved
- 71% reduction in organisational greenhouse gas emissions since 2019 (Scope 1 and 2, and limited Scope 3)
In October, Queenstown Airport began a major project to install engineered materials arresting system (EMAS) beds at either end of the main runway.
“We are pleased to report the project is running on time and on budget,” Flood says.
“Queenstown Airport is the first airport in Australasia to adopt this innovative technology, designed to safely stop an aircraft that overshoots a runway. Should a runway overrun occur at Queenstown, this will be the best investment we have ever made, and we are proud to be the leading the way in risk mitigation and enhanced safety,” he said.
Queenstown Airport Chief Executive Glen Sowry said good progress had been made on other key areas of focus, including sustainability, and projects to improve customer experience and operational efficiency.
Outgoing airport CEO Glen Sowry
“We closely monitor customer sentiment and undertake internationally benchmarked research to understand what customers want. These data sets highlighted the opportunity to expand and improve the food and beverage offering in the international gate lounge area. Skippers, a new casual bar and eatery, opened just in time for Christmas, and is proving to be a popular addition,” he said.
Queenstown Airport’s commitment to sustainability and the organisation’s decarbonisation plan continues. This has led to the achievement of a 71% reduction (Scope 1 and 2, and limited Scope 3). in organisational emissions compared to 2019, the baseline year.
“Our successful transition from Toitū Envirocare to the globally recognised Airport Carbon Accreditation was a highlight of the reporting period,” Sowry said. “We entered the programme, which is administered by Airports Council International and independently assesses the efforts of airports to reduce carbon emissions, at Level 4+ – the second highest-tier.”
Two long-serving company directors were farewelled in the past six months. Chair Adrienne Young-Cooper stepped down from the QAC board at the company’s Annual General Meeting in October, having served the maximum two terms.
Former QAC chair Adrienne Young-Cooper
Flood says: “Adrienne took on the role of Acting Chair in the first few days of the COVID lockdown and was formally appointed Chair by the QLDC a few months later. Adrienne governed the company through some of its most challenging times, and some of its most positive.
"She oversaw the delivery of the company’s 10-year Strategic Plan and the approval of the Master Plan in late 2023. It was a pleasure to work with Adrienne and we are grateful for her contribution and service."
Mark Thomson left the board at the end of December, having served as shareholder Auckland International Airport Ltd’s representative since June 2017.
“We also wish to acknowledge and thank Mark Thomson. He made a valuable contribution to the QAC board as Auckland Airport’s representative. We greatly appreciated his airport-specific knowledge, as well as the breadth of his property and retail experience.”
As a result, two new directors have joined the board. Dr Don Elder, of Wānaka, was appointed by QLDC, as the majority shareholder.
Dr Elder has a broad range of governance and executive experience in transport, infrastructure, engineering, construction, and finance. Auckland Airport’s Chief Strategic Planning Officer, Mary- Liz Tuck, was appointed to replace Mark Thomson as the minority shareholder’s representative, and brings a wealth of experience in master planning, sustainability and airport operations.
“It is a pleasure to welcome Don and Mary-Liz to the QAC board and my fellow directors and I look forward to working alongside them,” Flood says.
In October, Sowry announced he will be leaving Queenstown Airport at the end of this financial year.
“The board has appointed Johnson Partners to lead the search for a new CEO, and the recruitment process is well under way. It is pleasing to see the high level of interest in the role and the board will make an appointment announcement in due course,” Flood says.
“Looking ahead, we expect passenger numbers to remain strong, producing steady revenue and a solid full-year result. We will continue to focus on enhancing the passenger experience, and ensuring we are well-prepared for an extended period of infrastructure delivery,” he said
