Surge in traffic delivers increased profits

Jetstar and Air New Zealand launched new returns flights from Christchurch to Hamilton. PHOTOS:...
Jetstar and Air New Zealand launched new returns flights from Christchurch to Hamilton. PHOTOS: CHRISTCHURCH AIRPORT
A surge in air traffic has propelled Christchurch Airport to deliver a 24% increase in first-half profit to $29.5 million.

The after-tax result follows a 7% gain to 3.4 million passengers and revenue rising 10% to nearly $133m for the half year to December.

An interim dividend of $24.1m, up 13%, will go to shareholders Christchurch City Holdings and the Crown.

International passengers were up 15.2% and domestic traffic 4.8%.

The airport’s financial performance was also aided by a 99.2% occupancy rate in its property portfolio at the airport and wider campus.

Chief executive Justin Watson said the first-half result showed the strength of demand for travel and the energy the team had put into the business.

"Passenger numbers are up, our commercial areas are performing well, and our campus continues to attract businesses that want to grow alongside us," he said in a statement.

The growth was credited to new and expanded air services, including new domestic jet flights to Hamilton from Jetstar and Air New Zealand, increased domestic capacity from Jetstar and strong growth across international routes.

Summer long-haul services resulted in an extended season, more flights, and fuller planes.

The transtasman market benefited from new routes to Adelaide and Cairns and additional services from Air New Zealand and the Qantas Group.

Christchurch Airport chief executive Justin Watson.
Christchurch Airport chief executive Justin Watson.
Also helping the result was the near completion of the terminal’s food and beverage upgrade, with retail spending growing faster than passenger numbers.

Improvements were made to passenger flows, seating areas refurbished, bathrooms upgraded and parent facilities and new car parking technology added.

"The changes we’ve made from park to plane are making a noticeable difference, and that’s flowing through into stronger commercial results," Mr Watson said.

New air freight facilities were completed for DHL and Enatel, alongside the delivery of the first stage of a freight apron expansion.

Mr Watson said the new Enatel facility showed the airport campus’s appeal to high-tech and advanced manufacturing businesses.

S&P Global confirmed the airport’s A-/stable credit rating during the period.

The airport’s holding company, Christchurch City Holdings, will receive 75% of the dividend, expected to flow through to support city services and infrastructure, while the rest will go to the Crown.

Chairwoman Sarah Ottrey said the strong result reflected a well-run business delivering value to shareholders and the region.

The airport’s sustainability programme is on track to reach zero Scope 1 and 2 emissions by 2035.

tim.cronshaw@odt.co.nz