Christchurch Airport lifts profit – 'Never been more connected'

Christchurch International Airport, which is 75% owned by the city council, lifted annual profit 10% and increased its dividend payout to a record $31 million.

Net profit rose to $43 million in the 12 months ended June 30, from $39 million a year earlier, the company said in a statement. Operating revenue rose 5.4% to $161 million, as earnings before interest, taxation, depreciation and amortisation gained 11 percent to $103 million.

The airport will pay dividends of $31 million, or 90% of net profit, for 2016, up from $20.6 million, or 60% of net profit, in the previous year. The lift in dividend payout ratio was due to greater resilience in the business and a positive outlook, the company said.

Chief executive Malcolm Johns says he expects continued growth in passenger numbers in the next year, from 6.3 million in 2016 to between 6.6 and 6.7 million in 2017, with transtasman airline capacity forecast to increase by around 15 percent and international long-haul capacity by around 20 percent.

Passenger movements rose 6.2% to 6.3 million in the latest year, as domestic traffic climbed 18% and international passenger numbers advanced 7% while airline seat availability increased 7% to 7.9 million due to new services starting throughout the year. The airport handled 29,000 tonnes of international air freight in 2016, up 4% on a year earlier.

"We have seen domestic airline capacity reach record levels, with Air New Zealand adding additional services between Auckland and Christchurch and also to the regions," Mr Johns says.

"This city has never been more connected to Auckland and Wellington, and the regions, than it is right now. Nor has it ever been more connected to the big airport hubs in Australia and Asia as it is right now."

Qantas' new services from Brisbane, Sydney and Melbourne will double its capacity at Christchurch over the next year and the airport has worked with China Southern Airlines to establish a direct service to China and with Asiana Airlines, which will launch a direct service to Korea this summer.

Christchurch Airport is among assets owned by Christchurch City Council's investment holding company, while the Minister of Finance and the Minister for State-Owned Enterprises each hold one-eighth, meaning the Crown will receive about $7.8 million in dividends.

(BusinessDesk)

Click the hamburger symbol top right of our homepage to access the Rich List 2016 and other sections.