A surge in air passenger traffic has lifted Christchurch Airport to its strongest after-tax profit of nearly $65 million despite fuel price hikes. The result for the financial year ending June was up 30% from a year ago. This was on the back of 12.6% increase in 1.76 million international passengers going through arrival and departure gates and just over 5 million domestic travellers were up 5.4%. Airport leaders also credited increased flights and major infrastructure work for its strongest performance yet. Total operating revenue of $273m was up 11.4%, while an annual dividend to local and national government shareholders of $51.5m was up $6.8m. Throughout the year Kowhai Park Solar farm was completed, a new freight hub facility was opened and the terminal’s food, beverage and retail facilities were improved. [Missing Credit]Christchurch Airport chief Executive Justin Watson. Photo: Supplied Chief executive Justin Watson said the result showed strong growth across the business after years of careful planning and investment had come together. “We grew our core planes and passengers’ business, continued to expand our property and freight platform, considerably improved the experience for our customers and delivered important infrastructure,’’ he said in a statement. The airport would continue to look ahead to focus on growing connections, strengthening the commercial businesses and investing for the long term, he said. “The result is a stronger airport, with the capacity to keep investing in the things that matter to our customers, our city and the South Island.” A profitable year was achieved despite a challenging global aviation environment. Airlines continued to manage aircraft and engine shortages, fuel-price uncertainty and geopolitical disruption, he said. Mr Watson said the airport’s diversified business model helped provide stability, with growth across aviation and commercial activities supported by its property portfolio. The $51.5m annual dividend includes a $24.1m interim dividend paid in April, with the rest to be paid after an annual meeting in October. As 75% majority shareholder, Christchurch City Council will benefit from a $38.6m payout to its investment arm of Christchurch City Holdings. Christchurch Airport said the large return to the city would help ease pressure on rates while supporting essential services and infrastructure. The remaining $12.8m will go to the crown. Chairwoman Sarah Ottrey said the result showed the value of taking a long-term approach to manage one of the city’s most important assets. “Our airport is delivering strong financial returns while continuing to invest in the infrastructure, connections and opportunities our region will need in the future.’’ A successful airport provided more than a dividend as it supported jobs, tourism, trade and connections across the South Island, she said.
