Continued strong performance, underpinned by the diversification of the business and a focus on growing its core business of planes and passengers, has resulted in Christchurch International Airport declaring a higher than forecast total annual dividend for the year, despite significant challenges across the aviation sector.
Highlights from the organisation’s annual report include:
- $233.1 million – Total operating revenue (Up 15% on FY23 ($203.1m))
- $41.8 million – Underlying operating profit after tax (Up 37% on FY23)
- $37.6 million – Total declared annual dividend (Up $10 million on FY23)
- $2.36 billion – Total assets
“This strong trading performance is a clear reflection of Christchurch Airport’s well-executed intergenerational strategy,” said Board Chair Sarah Ottrey. “By concentrating on growing a diversified business of planes plus passengers plus property, we are delivering a growing and consistent revenue stream.”
Of the total $37.6 million declared annual dividend, $19 million was paid to shareholders in April, with a final dividend of $18.7 million to be paid following the Annual General Meeting in October. Christchurch City Council, which owns 75 percent of Christchurch Airport shares, is now set to receive a dividend injection of $28.2 million for FY24 into its investment arm, Christchurch City Holdings Limited.
The reported net surplus after tax result of $22.7 million, was impacted as a result of the Government’s removal of tax depreciation on commercial buildings. This change in tax treatment has had a one-off impact of $30.1 million on Christchurch Airport’s reported surplus in FY24.
Chief Executive Justin Watson said, “The launch of United Airlines new direct service to San Francisco, the return of China Southern and Cathay Pacific, along with increased international capacity from Air New Zealand, Qantas, Singapore Airlines, and Fiji Airways, has cemented Christchurch Airport’s position as the most important gateway to the South Island.”
Full-year passenger numbers totalled 6.25 million, up 10% on last year, with domestic up 5% and international up 33%. “Our growth is in part due to the attractiveness of Christchurch as a destination. 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.”
The airport campus continues to grow, being the largest centre of employment in the South Island, with over 250 businesses and 7,000 employees calling it home. Lease occupancy is sitting at 96% across the airport’s investment property portfolio.
The first airport in the Southern Hemisphere to reach Airport Carbon Accreditation Level 5 – the highest level of decarbonisation – Christchurch Airport continued to lead in environmental sustainability, reducing scope one emissions by over 90% from a 2015 baseline. The development of the Kowhai Park solar farm, in partnership with Contact Energy and Lightsource bp, is a key initiative that supports decarbonisation. The 230-hectare solar farm, currently the largest planned in New Zealand, will generate enough green energy to power 36,000 homes annually and will be operational by Q2 2026.
Focusing on growth, the airport started the largest terminal upgrade since 2013, which will see twelve new food and beverage outlets, improved layouts, seating areas, and a children’s play area. The airport continued its community support by providing over twenty grants to local initiatives, as well as participating in food recycling programs and repurposing over 8.5 tonnes of furniture and fittings to benefit the community.
