Christchurch Airport income boost for ratepayers

Thursday, 29 August 2024

Christchurch International Airport had 6.2 million passengers in the year to June.

Tailwinds in the form of landlords’ tax changes and extra flights have boosted Christchurch’s Airport’s return to ratepayers this year.

The airport company’s after-tax profit for the year to the end of June was $41.8 million, a 37% jump from the previous financial year.

More flights, including a direct route to San Francisco, have been added to the airport’s schedule.

Christchurch City Council, which owns three-quarters of Christchurch International Airport Ltd, will get a $28.2m dividend for the year through its investment arm Christchurch City Holdings. Central Government owns the remaining quarter of the company.

Last year the airport’s dividend to ratepayers was $15.5m.

The airport company saw its revenue grow in the past financial year.

In the company’s annual report released this week, board chair Sarah Ottrey noted its “strong trading performance”.

“By concentrating on growing a diversified business of planes plus passengers plus property, we are delivering a growing and consistent revenue stream.”

The company is a major landlord. Its $2.36 billion worth of assets includes $785.4m worth of investment property rented and leased to office, industrial and retail tenants.

The company’s revenue included $91.5m from rent and leases during the year, $83m in terminal and landing charges, and $40.7m in ground transport including car parking.

Christchurch Airport chief executive Justin Watson.

Total operating revenue was $233.1m, up $30m on the previous year.

The Government’s removal of tax depreciation on commercial buildings had a one-off impact of $30.1m on the company’s annual pre-tax profit.

Passenger numbers were up at Christchurch Airport in the past year.

Passenger and flight numbers were also up for the year. Domestic passengers rose 5% and international passengers 33%. Of the airport’s 6.2 million passengers, 1.4 million were international.

Airport chief executive Justin Watson said the new United Airlines direct service to San Francisco, the return of airlines China Southern and Cathay Pacific, and more international flights from Air New Zealand, Qantas, Singapore Airlines, and Fiji Airways, had cemented the airport’s position as the most important gateway to the South Island.

“Our growth is in part due to the attractiveness of Christchurch as a destination,” he said.

“With new infrastructure such as Te Pae, Riverside, The Terrace and cruise facilities the city has once again risen to the top of highly attractive destinations for both business and for recreation.”

Watson’s performance-linked salary and bonuses totalled $865,000, up from $780,000 the previous year.

Seventeen other staff were paid between $200,000 and $420,000.

The report also said the airport’s planned 230-hectare solar farm Kowhai Park will be up and running by the second quarter of 2026.

Comments are moderated during work hours and may not appear online immediately.