Why Hawke's Bay Airport made $1m loss - Covid 19 lockdown

In April 2020 there were just 149 passengers at Hawke's Bay Airport. Photo / File

Hawke's Bay Airport has revealed a loss of $1 million for the year, as new numbers show just how badly Covid-19's lockdown affected it.

An annual report presented to Hastings District Council on Thursday showed the airport made a loss of $1.01m in the year to June 30, 2020. The year prior, it had made a $1.5m profit.

Hawke's Bay Airport Ltd (HBAL) is 24 per cent owned by Hastings District Council , 50 per cent by the Crown and 26 per cent by Napier City Council.

The annual report states that in April 2020, when NZ sat in level 4 lockdown, there were just 15 aircraft movements at the airport, down 1174 on the year prior. A total 149 passengers flew out, down 64,862 on the year prior.

It meant that revenue for April was just $105,000, down from $649,000 on the year prior.

Passenger numbers for the entire year were 541,000, down 28 per cent to levels seen in 2015 before Jetstar entered (then left) the Hawke's Bay market.

HBAL board chairwoman Wendie Harvey told the council the loss will "certainly come as no surprise" and there were three main factors impacting the result.

Covid-19 was a factor alongside "really significantly" Jetstar exiting the airport in December 2019 and impact of Covid-19 striking in the middle of the terminal rebuild.

The loss also included the write off for the old terminal of $1.371m.

"Although the result is disappointing the fact that we are here and well on our way to recovery is down to the sheer commitment and resilience of people we have.

"In short it was probably the most challenging experience that a number of us have been through in our working life."

She also spoke of the impact another Covid-19 lockdown situation could have.

HBAL chief executive Stuart Ainslie said it would have about a half a million dollar impact a month on businesses.

Since the financial year end, Harvey said the airport was "tracking well in terms of recovery".

Councillor Simon Nixon said it was a "result better than one could anticipate" and interim numbers for the second half of the year suggested there had been "quite an astonishing recovery".