Christchurch Airport (CIAL) has today announced underlying
Net Profit after Tax up 110% to $37.8 million and total declared
dividends up 171% to $20.6 million.
David Mackenzie says the result is a reflection of the step change
that has occurred within 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.
Christchurch Airport's Net Profit before Tax of $50.2 million
(up 113%), includes underlying operating profit of $36.3 million, a
one-off gain on the sale of assets of $5.1 million and investment
property revaluation gains of $8.8 million. Net Profit After Tax is
$37.8 million (up 110%).
on sale relates to land and buildings sold to NZTA to enable it to
complete the project to widen Russley Road to the east of the
Airport. The Board decided this one-off gain will be fully
distributed to shareholders in the form of a special dividend, so
the total declared dividend for the year, of $20.6 million, is made
up of $15.5 million from underlying profit after tax and $5.1
million from the gain on sale," says Mr Mackenzie.
airport company expects to be in a position to significantly
increase the percentage of profits paid out in respect to FY16," he
airport's board chairman says the airport has reset strategy
looking out over the next decade. The company will concentrate on
growing international passenger numbers, with particular focus on
Australia and Asia, as well as maintain solid progress in its
property development programme.
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. The new retail
development, the 6,100 sqm Spitfire Square, has been completed and
the Countdown supermarket is open. We will see the other outlets
open progressively over coming months," he says.
also been 17,000 sqm of new developments in Dakota Park, the
airport's light industrial and logistics hub in the south east of
the campus. Overall, the airport's capital expenditure on new
revenue generating investment property and infrastructure was $45
million during the year.
revenues for the airport rose 21.9% to $159 million, driven by
strong growth in aeronautical revenue - up 43% to $68.3 million -
and strong growth in non-aeronautical revenues of 9.7% to $90.7
Executive Malcolm Johns says the past year clearly signals the
airport company is looking forward and moving into the post
extremely proud of every member of our team," he says. "We have
seen solid revenue growth off the back of some dedicated and hard
work by our business development teams, both in Christchurch and on
the international stage. We've also seen some outstanding work by
our operational teams, in maintaining a top shelf customer
experience for all our airport users."
says passenger spend rates in the terminal rose 4.2%, despite
changes to allowable amounts of some duty free items and the
airport introduced a number of customer driven enhancements to
increase the choice and range of cost options for airport users
needing car parking.
has kept us at the top of independent customer experience surveys
for airports across Australia and New Zealand, which means we've
been there for three years in a row now, something we are all very
very focused on continuing to enhance our retail offerings to our
visitors and working hard to keep increasing the range of product
and purchasing choices available to airport users across our whole
product range. Airport visitors can expect to see us continue to
innovate in this area and to see new choices announced over the
next year," he says.
airport enjoyed strong growth in both airline seats and passenger
numbers over the past year. International passenger numbers rose 7%
and international freight volumes rose 9%. Passenger load factors
on international flights rose 5% to an average of 86%. Key growth
markets were Australia +7%, SE Asia +7%, China +53% and India
airport estimates this growth added approximately $300 million in
new visitor spending to the country, most importantly it spreads
out across all the regions of the South Island when Christchurch is
the entry point for those visitors. Official government statistics
show that when Christchurch is the entry point visitors spend 84%
of their total spend in the regions of the South Island; when
Christchurch is not the entry point, this falls to less than
says "Last summer, China Airlines began a new service from Taiwan.
It proved incredibly successful and underlined that the rising
international load factors into Christchurch reflect growing
international consumer demand for more direct air access to the
South Island. Our airline development team has been competing hard
on the international stage and has delivered the South Island an
additional 550,000 airline seats over the coming financial year.
This is a step change in post-quake international air connectivity
and will super charge outcomes for every region in the South Island
and by default New Zealand."
coming 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); 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.
pleased to see our airline customers in a very healthy state, with
many announcing record profits and strong growth plans. During the
year we saw Air New Zealand and Singapore Airlines enter an
alliance for the next four years. Singapore Airlines has been
flying to Christchurch for 29 years and will celebrate a 30 year
relationship with us next year. Singapore Airlines increased its
Boeing777 services to Christchurch following the earthquakes and
will fly between Christchurch and Singapore 393 times over the