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The Dunedin International Airport increased its terminal rentals by almost a third at the halfway stage of the year, as the benefits of its terminal investment project started to generate returns.
The airport, which is jointly owned by Dunedin City Holdings and the Crown, reported total revenues up 4% to $9.1million for the six months to December 2019, with an operating surplus of $2.1million.
Land-based, or non-aeronautical income, accounted for 54% of the total, an increase of 5.6% on the previous year.
A 32.7%, or $304,000 increase in terminal rentals came from the opening of a new, temporary Relay news and book store, increased revenue from rental car companies and a $45,150 increase in car park revenue. However, dairy farm revenue was down by $107,500, in line with a change to the company’s accounting for dairy farm retro payment revenue.
Passenger numbers were down 1.2% on the previous year as a result of the cancellation of the Jetstar Wellington service, though increased landing charge revenue per passenger pushed revenues up nominally to $4.1million.
Airport chief executive Richard Roberts said the increased landing charges reflected a change in airline mix, as jet and ATR services attracted different landing charges.
He also warned that the airport was expecting to see some effect from declining passenger numbers in the coming months as a result of Covid-19.
‘‘We will be focusing on the domestic and Tasman markets and working with Enterprise Dunedin, Tourism NZ and the airlines to promote the city and the region.’’
He said the airport was still forecasting more than one million passengers this year.
The cancellation of the Jetstar Wellington service had reduced passenger numbers by 26% to 65,126 for the period. Air New Zealand increased numbers by 3.4% to 441,414 and Virgin by 11.5% to 24,663.
Overall international passenger numbers increased by 11% to 24,663.
Mr Roberts said the new terminal expansion project would open officially in two weeks and the budget was tracking at $14million.