Queenstown Airport pays record dividend as earnings edge up

Transtasman flights have boosted Queenstown Airport's results.

Queenstown Airport’s recovery remains on track, with a record dividend for its two big shareholders.

For the year to June 30, the airport’s earnings before interest, tax, depreciation and amortisation (ebitda) were $46.2 million (compared to $43.9m last year) on revenue of $64.7m ($59.6m) and a normalised profit of $23.2m ($22.2m).

It will pay a $19.6m dividend to shareholders, the Queenstown Lakes District Council (with 75.01%) and Auckland International Airport.

While other airports nationally remain below pre-Covid passenger numbers, Queenstown is up 7% on 2019 levels and the 2,487,610 passengers for the past year was ahead of 2,370,488 in 2023.

“It has been another positive year, with record revenue and passenger numbers. The results confirm the company’s strong recovery from the pandemic and are in line with forecast activity levels,” Queenstown Airport Corporation chairwoman Adrienne Young-Cooper said.

The airport cut dividends during the pandemic but for the latest financial year will pay $19.6m – the highest it has ever paid.

An interim dividend of $5.3m was paid to shareholders in February, and the remainder will be distributed this month.

Since the pandemic, it had delivered more than $35m in dividends.

“We are pleased to be in a position to pay a higher-than-normal dividend this year ahead of significant investment in our infrastructure,” Young-Cooper said.

Demand for seats on transtasman flights was “noteworthy”, while domestic demand remained steady.

“We know those flights bring many social and economic benefits for the people and businesses of the Southern Lakes region. Furthermore, they enable us to make a meaningful financial contribution to our community,” she said.

During the year, plans for a potential rival airport were put on hold. Christchurch Airport parked its plan for an airport at Tarras in Central Otago, which would have drawn some passengers away from Queenstown.

Queenstown Airport chief executive Glen Sowry said a highlight of the year was the completion of a master plan, which will guide considerable investment in infrastructure at Queenstown Airport over the coming decade.

“We do not underestimate the responsibility we have in managing such an important community asset and we are confident our plan strikes the right balance between investing in the future and protecting what makes Queenstown Airport and our region unique.”

The first major project from the plan is the installation of an engineered materials arresting system (Emas) at either end of the main runway, which is to begin late this month.

“We are proud to be the first airport in New Zealand and Australia to install this innovative safety technology, which exceeds compliance with civil aviation regulations,” Sowry said.

The company’s annual general meeting will be held in October. Young-Cooper will retire from the board after the AGM, having served the maximum two terms.

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