Nelson Airport Posts Strong Annual Result Thanks to Post-Covid Travel Recovery

Nelson Airport has released its Annual Report for the 2023 financial year (FY23), reporting EBITDA (earnings before interest, taxes, depreciation and amortisation) of $9.6 million and payment of a $1.2 million dividend to the region’s two councils for the benefit of the wider region and community.

The key results for the year were:

• 915,000 passengers, up from 619,000 in FY22
• Total revenue of $16.6 million, up $4.9 million on FY22
• EBITDA of $9.6 million, 40% above budget
• Ordinary dividend of $1.2 million paid to shareholders, the Nelson City and Tasman District Councils, up 9% on the prior year

Nelson Airport Ltd chair Quinton Hall said the financial year had beaten all expectations, largely due to the strength of pent-up domestic travel demand.

“We knew the lifting of Covid restrictions would see travel increase, but the desire people have shown over the past year to reconnect with the people and places they love has outstripped all expectations. Nelsonians and New Zealanders generally have embraced the opportunity to travel with confidence to see those they’ve been separated from and experience a wider world again.”

Quinton said a successful airport was good for the whole region. “We exist to contribute to the sustainability and prosperity of Nelson-Tasman. That’s why we’re here and it’s great to be able to share some of what we’ve been doing to achieve that with both our shareholders and the wider community through the Annual Report.”

Quinton said other achievements during the year included achieving an “Excellent” customer satisfaction rating in the airport’s annual survey, the introduction into service of the new airport Rescue Fire Service fire appliance “Flick”, the completion of the new Rental Car Kiosk in front of the terminal and start of construction on a new base of operations for GO Rentals. The lodging of the airport’s Project 2-Zero planning application was also a significant milestone in the airport’s journey towards achieving its vision of being a world-class airport where zero-emissions aircraft operate.

“Along with all the mahi we have also had the great pleasure of inviting the community to join in with us at fun events and activities such as the Walk the Runway fundraiser, Nelson Anniversary Day Ice-Cream Social and the Nelson Airport Plane Spotting Photography Competition.”

The outlook for the 2024 financial year was looking tougher, but the airport was still predicting modest growth in passenger numbers, Quinton said.

“We’re expecting growth to slow in an environment of high interest rates and low economic growth, but not to retract. Our objective remains the same, to deliver prosperity and sustainability to the region every day through the provision of sustainable airport infrastructure that connects us to the world, by facilitating business opportunities and by supporting excellent experiences that add to visitor satisfaction.”

The full Annual Report 2023 is available at: nelsonairport.co.nz/reportsandpolicies