Airport feels the wins of change as travel revives
Queenstown facility to restart dividends with record payout after Covid pause
Queenstown Airport will pay a record interim dividend after a strong start to the financial year, and forecasts steady growth for the rest of the year.
Its interim results for the six months to December 31 reflect the steady recovery of passenger numbers after travel restrictions linked to the pandemic were lifted.
Queenstown Airport Corporation last paid a $1 million interim dividend in the 2020 financial year and none in the following two years as Covid19 hit aviation.
It will pay $5.98m for the past six months.
As the majority shareholder, the Queenstown Lakes District Council will receive $4.49m.
Auckland International Airport owns the remainder of the company.
QAC says it is expected the total dividend for the full 2023 financial year will also be the highest ever paid.
For the last six months, revenue of $30m was up from $12.7m in the prior corresponding period.
Earnings before interest, tax, depreciation and amortisation (ebitda) increased by 256 per cent from $6.3m to $22.5m.
After-tax profit was $11.5m, up from $0.8m in the same period last year.
Term debt was $53m, down from $65m.
Total passenger numbers exceeded 1.2 million, up from 482,000 domestic-only movements in the period. Those numbers are now on par with pre-Covid levels.
QAC board chair Adrienne YoungCooper
said that in the last six months Australian and domestic visitors had steadily returned to Queenstown.
“The great snow conditions during winter, combined with the uplift in passengers taking the opportunity to reconnect with friends and family, made the Southern Lakes a popular destination,” she said.
Demand had been boosted by rapid population growth.
The Queenstown Lakes District population had grown by 10.5 per cent since 2019 and was now close to 50,000.
Thanks to the larger population base and more New Zealanders working remotely, the airport said it was an important link for residents of the region.
The company’s report from Young-Cooper and chief executive Glen Sowry said it was expected the steady return of travellers experienced during the reporting period will be sustained over the next six months.
However, a forecast economic recession could have a suppressing effect on demand for travel as significant increases in the cost of living take effect, the company warns.
“As has been the case around the world, we have experienced staff shortages and supply chain issues as aviation has restarted.”
Auckland Airport, Air New Zealand and Qantas report interim results today and they will show the strong recovery of travel in this region.