Queenstown Airport releases its half-term financials

Queenstown Airport just released its results for the first half of the financial year and declared a $7.0 million interim dividend, reflecting a strong start to the year. 

Releasing the interim report for the six months that ended 31st December 2024, Queenstown Airport chair Simon Flood said the business had started the financial year well with a strong financial performance and significant progress towards its strategic goals.

Flood said: “We are grateful to our shareholders for their ongoing support and, following our first-half results, we are pleased to be able to distribute an interim dividend of $7 million, which will be paid out to shareholders this month. In determining the level of the dividend to be distributed, the Board has considered not only our results for the period under review, but also our commitments in the foreseeable future.”

It should also be noted that the airport company is an important community asset, and the Queenstown Lakes District Council (QLDC) will receive $5.2 million as the major shareholder.

A busy time

Queenstown Airport has been busy, with a total of 1,343,006 passengers passing through the terminal in the first six months of the current fiscal year. 

This represents a six percent increase compared with the same period the previous year.

Revenue for the first half of the financial year was up 22 percent and profit up 27 percent compared with the same period the previous year.

Flood explained: “Airport operations ran smoothly during the peak winter weeks and over the summer holidays, when record numbers of passengers travelled through the terminal: a testament to the hard work and professionalism of our team.”

He noted the growth in passenger numbers was driven by continued demand for travel to and from Queenstown, with particularly strong trans-Tasman numbers.

He said: “Over the coming years, we will complete the most significant capital investment programme in the airport’s 90-year history. A key strategic focus for the board of directors and executive team is the delivery of the Queenstown Airport Master Plan. Detailed development and organisational planning are underway. Capital investment planning, procurement, and programme delivery will continue in sequenced stages. An important focus will be ensuring Master Plan progress updates are provided to our broad range of stakeholders.”

Projects running on time

In October, Queenstown Airport began a major project to install engineered materials arresting system (EMAS) beds at either end of the main runway.

Flood said of this: “We are pleased to report the project is running on time and on budget. Queenstown Airport is the first airport in Australasia to adopt this innovative technology, designed to safely stop an aircraft that overshoots a runway.”

He added that, should a runway overrun occur at Queenstown, this will be the best investment the airport have ever made.

Of this, Flood said: “We are proud to be leading the way in risk mitigation and enhanced safety.”

Sustainability at the fore

Queenstown Airport CEO Glen Sowry said good progress had been made on other key areas of focus, including sustainability, and projects to improve customer experience and operational efficiency.

According to Sowry: “We closely monitor customer sentiment and undertake internationally benchmarked research to understand what customers want. These data sets highlighted the opportunity to expand and improve the food and beverage offering in the international gate lounge area. Skippers, a new casual bar and eatery, opened just in time for Christmas, and is proving to be a popular addition.”

Queenstown Airport’s commitment to sustainability and the organisation’s decarbonisation plan continues. This has led to the achievement of a 71 percent reduction in organisational emissions compared to 2019, the baseline year.

As Sowry puts it: “Our successful transition from Toitū Envirocare to the globally recognised Airport Carbon Accreditation was a highlight of the reporting period. We entered the programme, which is administered by Airports Council International and independently assesses the efforts of airports to reduce carbon emissions, at Level 4+, the second highest-tier.”