Queenstown Airport passenger numbers up on pre-Covid, pays $5.3m dividend

Aircraft parked at Queenstown Airport.

Passenger movements through Queenstown Airport during the six months to December 31 are up on pre-Covid levels, a sign of steady recovery in aviation.

The airport is the first of the big aviation businesses to report its interim results, with parent company Auckland Airport and Air New Zealand releasing their results tomorrow.

At Queenstown Airport, there were 1,264,306 arrivals and departures – up 3.3 per cent compared with the same period in 2022 and up 0.5 per cent relative to pre-Covid in 2019.

International traffic is performing better than domestic movements.

Of the total, 799,468 passengers travelled on domestic flights, down 5.4 per cent on 2022 and down 4.9 per cent on 2019.

The remaining 464,838 passengers travelled internationally, up 22.7 per cent on 2022 and 11.4 per cent on 2019.

Revenue increased 10 per cent to $33 million. Earnings before tax, depreciation and amortisation (Ebitda) rose 7 per cent from $22.5m to $24.1m.

Net profit after tax was $12.7m – 10 per cent up on $11.5m in the prior corresponding period. In 2019, profit for the six months to December 31 was $10.8m.

Queenstown Airport will this year pay its shareholders - Queenstown Lakes District Council and Auckland International Airport (AIA) - an interim dividend of $5.3m.

As the majority shareholder at 75 per cent, Queenstown Lakes District Council will receive just under $4m and AIA the balance.

Chairwoman Adrienne Young-Cooper said the business had started the financial year well, with sustained demand for travel to and from Queenstown, especially on transtasman routes.

“It is pleasing to have established a cadence again after the upheaval caused by the Covid-19 pandemic,” she said.

Domestic capacity was constrained during the reporting period after Pratt & Whitney engine issues meant changes to Air New Zealand’s flight schedules.

“This was balanced by growth in international passenger numbers, which underscores the enduring appeal of this region to the Australian market,” she said.

Passenger numbers were expected to remain strong over the next six months, producing steady revenue and delivering a solid full-year result.’'

Grant Bradley has been working at the Herald since 1993. He is the Business Herald’s deputy editor and covers aviation and tourism.