Hawke's Bay Airport has posted a big loss after a quiet six months impacted by Covid. Photo / Warren Buckland
Hawke's Bay Airport has posted a big loss after a quiet six months impacted by Covid. Photo / Warren Buckland
Hawke's Bay Airport has reported a $413,000 loss for the second half of 2021 following the ongoing impact of Covid on the aviation industry.
That period included a four-month lockdown in Auckland which severely reduced air travel into Napier.
It also included a shorter lockdown in Hawke's Bay from mid-Augustto early September during which time the airport was effectively closed to domestic travel.
However, the airport boss says she expects the airport to be back in the black for the 2022/23 financial year as flights pick up again.
A six-monthly report released by Hawke's Bay Airport Limited (HBAL) has highlighted the impact Covid and lockdowns had on the airport's bottom line for the period of July to December 2021.
"HBAL has reported a half year after tax loss of $412,821 which is significantly worse than the budgeted loss of $21,738 for the same period," council papers read, summarising the report.
The report stated there was a shortfall of 81,000 passengers compared to what was expected during that time.
"Total passenger movements for the half year were 171,851 representing a 15 per cent decrease on the same period [the previous year] and being 32 per cent, or 81,260 [passengers], less than budget."
Former airport boss Stuart Ainslie (pictured) resigned late last year and the airport is still searching for a new CEO. Photo / Warren Buckland
It also noted revenue from car parking, cafe concessions and advertising were also down.
The report stated the possibility of breaking even over the full financial year of 2021/22 was unlikely.
"Full year forecasts performed pre-Christmas 2021 showed a possible break even result for the full year FY22.
"However, with the effects of the Omicron outbreak now already evident in 2022, forecasts indicate that a break even result for the financial year will be very unlikely," the report read.
Hawke's Bay Airport acting CEO Stephanie Murphy said the airport was forecast to return to profit again in the 2022/23 financial year.
"While New Zealand is in the midst of the current Omicron outbreak it will take some time for travel to return to pre-pandemic levels, but we are looking forward to a steady improvement over the next year," she said.
The search for a new CEO at the airport is ongoing after former boss Stuart Ainslie left at the end of last year.
"The board is confident they will be in a position to make an announcement soon," Murphy said.
The airport is also nearing completion of its new forecourt project outside the main terminal.
Hawke's Bay Airport Limited runs the airport and is jointly owned by the Crown (50 per cent), Napier City Council (26 per cent), and Hastings District Council (24 per cent).
