Airport boosts dividend payout to city council
Strong visitor numbers have helped Christchurch Airport post a better than expected six-month profit.
The result means the dividend paid to the city is higher than expected, at $19 million compared with the $18.5m forecast.
Christchurch City Council owns 75% of the airport via its investment company Christchurch City Holdings Ltd.
The airport announced yesterday that its total income for the six months to December 31, 2023 was up 19.9% compared to the same period last year. It had a total operating revenue of $115.5m during that time and a net surplus after tax of $21.5m, an increase of 34% on the same time last year.
Passenger numbers were 11.5% higher, with 3.14m people passing through the airport. However, passenger numbers are still not quite at pre-Covid levels.
Domestic passenger numbers were at 97% of pre-Covid levels and international passengers at 76%.
However, the airport says international routes and connections now exceeds those serviced pre-pandemic, with China Southern Airlines and Cathay Pacific restarting services, and United Airlines beginning new direct services from San Francisco.
Airport chairperson Sarah Ottrey said strong visitor numbers, coupled with the strength of its commercial tenant portfolio, meant the company could give the city a higher than forecast dividend.
She said the airport continued to deliver for the city in the current challenging economic times through growing dividend returns and the doubling of its value over the past 10 years.
”The return of the airport’s international airlines plus the addition of United Airlines brought hundreds of thousands of visitors, and resulting economic benefit, to the city over summer,” she said.
“Our airline partners have shown great confidence in Christchurch, as does United Airlines starting the first direct service between our city and San Francisco.
“The airline services are a direct result of passengers wanting to come here and it is clear Christchurch as a city is more attractive than ever to visitors.”
The stronger than forecast result could also be attributed to a growth in aeronautical and commercial tenancy revenues, as well as ongoing strong performance within the investment property portfolio.
Chief executive Justin Watson said changes made to the business over the past eight years, including investing in commercial property to diversify revenue streams and rebuilding international connections, meant the airport was well positioned going into the Covid pandemic. “This enabled us to restart quickly and capitalise on opportunities such as the appeal of Christchurch as a visitor destination.”