Christchurch Airport (CIAL) is reporting an increased net profit, revenue, and total declared dividends resulting from record passenger numbers and strong property growth.
CIAL’s net profit after-tax for the 2017 financial year grew $21.5 million (50%) to $64.6m, operating revenue increased $7.4 million (4.3%), and passenger numbers hit a new high of 6.57m (2016: 6.3m).
Retiring chairperson David Mackenzie says the uplift in the airport company’s property portfolio reflects excellent rental returns on property investments and the delivery of new developments to make efficient use of airport land.
He says passenger numbers of 6.57m through the airport’s terminals for the financial year show the company remains on track to achieve its target of 8.5m passengers per annum by 2025.
Airline seats were 8.3 million in FY17 (up 7%) and passenger numbers were at 6.57 million (up 4.1%).
“In the property area, we have seen the completion of the new parcel logistics area with dedicated taxiway and apron to allow for the more efficient transition of package freight into and out of Dakota Park,” says Mackenzie.
“Parcel freight operators have experienced strong growth as e-commerce drives increased volumes and in the 2017 financial year, CIAL completed new premises for Freightways and Courier Post,” he says.
“These new facilities will handle around 85% of all parcel freight into and out of the South Island,” says Mackenzie
Mackenzie says the Board is very focused on how new technology and changing consumer behaviours would shape its business going forward.
CIAL is partnering with HMI Technologies to undertake New Zealand’s first autonomous electric vehicle trial and remained focused on establishing a basis to deploy autonomous electric vehicles for public transport on campus.
CIAL also executed an MOU with Alibaba Group to explore how New Zealand’s small businesses could achieve more value out of visitors from China and in the process drive greater parcel volumes into the air freight sector.
Mackenzie is stepping down from his role as chairperson at the company’s AGM in October, after nine years leading CIAL.
During those nine years, the airport has had to contend with the global financial crisis and the Canterbury earthquakes.
Despite this, he says the company has been able to build its business, construct and commission the new integrated terminal, establish new parking facilities, and substantially expand its property portfolio.
Mackenzie says he is happy with both the physical and fiscal transformation of the airport since 2008, and says he feels privileged to have been able to have played a role in the airport’s success.
His successor is Catherine Drayton, a professional director and a current member of the CIAL board.
