Queenstown Airport's record $20m dividend

It has been a bumper year for Queenstown Airport Corporation (QAC).

QAC made $23.2 million in profit from $64.7m revenue for the financial year, as 2.5 million passengers (arrival and departures) passed through ZQN.

It will pay a record dividend to shareholders of $19.6m - including $14.7m to majority shareholder Queenstown Lakes District Council.

That's the highest the company has ever paid and equates to about $485 per ratepayer.

"It has been another positive year, with record revenue and passenger numbers. The results confirm the company's strong recovery from the pandemic and are in line with forecast activity levels," Queenstown Airport Corporation Board Chair Adrienne Young-Cooper says.

"Since the COVID-19 pandemic, we have delivered more than $35 million in dividends. We are pleased to be in a position to pay a higher than normal dividend this year ahead of significant investment in our infrastructure."

FY24 snapshot:

• Revenue of $64.7 million
• Normalised profit of $23.2 million
• Earnings before interest, tax, depreciation and amortisation (EBITDA) of $46.2 million
• Total annual dividend to shareholders of $19.6 million
• Scheduled aircraft movements totalled 18,388
• Passenger movements totalled 2,487,610
• $150,000 contribution to the community through QAC’s partnership programme
• Master Plan completed
• Development planning under way.

An interim dividend of $5.3 million was paid to shareholders in February, and the remainder will be distributed this month.

Demand for seats on trans-Tasman flights was particularly noteworthy, while domestic demand remained steady.

“We know those flights bring many social and economic benefits for the people and businesses of the Southern Lakes region. Furthermore, they enable us to make a meaningful financial contribution to our community," Young-Cooper says.

Queenstown Lakes District Mayor Glyn Lewers says the money will be used to pay down council debt.

"This is a strong result for QLDC and around $3.4m beyond earlier forecasts," Lewers says. "The dividend will be used to pay down debt as per Council’s adopted policies and it will therefore enable more breathing space for managing Council’s debt ceiling."

He praised the work of the board and executive team, saying the result shows they have "developed and maintained a stable, high-performing organisation that delivers on the needs of the community”.

 

QAC Chief Executive Glen Sowry said a highlight of the year was the completion of a Master Plan, which will guide considerable investment in infrastructure at Queenstown Airport over the coming decade.

“We do not underestimate the responsibility we have in managing such an important community asset and we are confident our plan strikes the right balance between investing in the future and protecting what makes Queenstown Airport and our region unique.”

A substantial programme of work to create detailed development plans for the airfield, the terminal, the landside spaces around the terminal, and services and utilities is now under way.

“The resultant capital works programme will be the largest ever undertaken at Queenstown Airport,” Sowry said.

“It will be challenging to manage the complexities of this while normal operations continue, but we have our sights fixed firmly on delivering a world-class outcome. We will use innovation and carefully considered design to develop an efficient, customer-focused airport that reflects this beautiful region well, and meets the needs of its population far into the future.”

The first major project arising from the Master Plan is the installation of an engineered materials arresting system (EMAS) at either end of the main runway, which is to begin late this month.

“We are proud to be the first airport in New Zealand and Australia to install this innovative safety technology, which exceeds compliance with civil aviation regulations and is a tangible demonstration of our determination to surpass expectations,” Sowry says.

Other projects to make the best use of the existing facilities and to improve the customer experience are also being delivered.

During FY24 (the 12 months to 30 June 2024), extra self-service technology was installed and passenger screening capacity was increased with the addition of a fourth lane.

The opening of Provenance, a new cafe and bar with a courtyard that opens up to the airport forecourt, has expanded the food and beverage offering and provided extra landside seating.

The international departure lounge has been upgraded, with new furniture including seating for an addtional 60 people, as well as workstations.

A bathroom refurbishment programme is under way.

"We are also putting considerable effort into upgrading the heating and cooling system, minimising waste, boosting electrical capacity, supporting biodiversity projects, and other sustainability initiatives," Sowry says.

The company’s annual general meeting will be held in October, when the board and executive team will report on the past financial year, as well as providing an outlook for the year ahead.

Young-Cooper will retire from the board after the AGM, having served the maximum two terms.