Christchurch Airport (CIAL) has announced underlying net profit after tax (NPAT) is up 110% to $37.8 million, and total declared dividends are also up 171% to $20.6 million.
Chairperson David Mackenzie says the result is a reflection of changes in all areas of the business over the past year.
“We’ve seen strong international passenger growth, new aeronautical pricing (reflecting the investment in the new terminal) and the airport’s property development programme continuing to gather pace,” he says.
There have also been 17,000 square metres of new developments in Dakota Park, the airport’s light industrial and logistics hub in the southeast of the campus.
The Airport’s net profit before tax of $50.2 million includes operating profit of $36.3 million, a sale of assets of $5.1 million and property gains of $8.8 million.
“The airport company expects to be in a position to significantly increase the percentage of profits paid out in respect to FY16,” says MacKenzie.
The company will concentrate on growing international passenger numbers, focusing on Australia and Asia, as well as maintaining progress in its property development programme says the chairperson of the board.
“The past year has seen us complete Mustang Park, the new tourism transport hub to the north of the terminal, with Tourism Holdings Limited recently moving into its new campervan site there,” he says.
A new retail development, the 6,100 square metre Spitfire Square, has been completed, and the Countdown supermarket is open. We will see the other outlets open progressively over coming months,” he says.
Operating revenues for the airport rose 21.9% to $159 million driven by growth in aeronautical revenue – up 43% to $68.3 million – and growth in non-aeronautical revenues of 9.7% to $90.7 million.
This financial year Christchurch Airport will welcome new services from China Southern Airlines between Guangzhou and the South Island; China Airlines between Taiwan and the South Island (via Sydney and Melbourne).
There will be increased capacity by Singapore Airlines with additional 777 flights over summer; increased capacity with Australia from Virgin Australia and Jetstar; and a new service by Qantas between Christchurch and Brisbane.
Air New Zealand will increase domestic seats between Christchurch and Auckland by as much as 180,000 over the coming year.
