Queenstown Airport Corporation's end-of-year financial result
was described as ''not spectacular but solid'' by chief
executive Scott Paterson yesterday.
The financial statement for the year ended June 30 showed a
net tax-paid profit of $5.27 million, compared with a profit
of $5.17 million the previous year, with a year end dividend
of $3.63 million, up slightly from $3.58 million in 2012.
Revenue grew 7.7% from $18.2 million to $19.6 million,
underpinned by an overall increase in passenger numbers - up
14.5% to 1,198,918 for the financial year.
Mr Paterson said the challenges facing the airport came down
to passenger volume.
Although the financial statement showed domestic passengers
had increased overall, by 12.4% to 957,204, in the past three
months they had declined.
''The cause of that is Jetstar's withdrawal from
''From the beginning of September, Jetstar has withdrawn from
Wellington - we'll start to see the implications of that
Mr Paterson said the airport and Destination Queenstown were
''pushing Air New Zealand for more capacity'', but the flip
side of the decline was the growth in international visitors.
More volume had come via Jetstar's transtasman services,
which last month rose almost 20%.
''For July, Queenstown was the second largest region of
Australian visitors in the country, behind Auckland.
''We expect that will probably continue through August.''
However, the issue for the airport was how to handle the
growth, and looking at if it needed to build, and if so where
and most importantly when.
''We think domestic volume, year on year, could fall and we
think international volume will grow ... they'll cancel each
''We will be working on plans for addressing both increasing
international volume and trying to stimulate domestic
Total capital expenditure for the year was $5.7 million ($8.6
million in 2012), primarily comprising an extension of the
international departure facilities, a new and enhanced Koru
lounge and completion of a new rental car facility.
While the completion of the projects allowed QAC to manage
growth in passenger numbers, they also resulted in increases
in both depreciation and amortisation, up $0.9 million, and
funding costs, up $0.3 million, which reflected a ''timing
lag'' between project completion and an uplift in earnings.
The consequence was a net profit after tax of 2.1%.
''We would like to have had some more, but extra depreciation
in assets will result in better performance in this current
''We're starting to see that improved performance coming