Queenstown Airport Announces Record Dividend After Positive Year

2024-08-21

Queenstown Airport has released its financial report for the 12 months to 30 June 2024, which shows a strong operating performance.

FY24 snapshot:

Revenue of $64.7 million
Normalised profit of $23.2 million
Earnings before interest, tax, depreciation and amortisation (EBITDA) of $46.2 million
Total annual dividend to shareholders of $19.6 million
Scheduled aircraft movements totalled 18,388
Passnger movements totalled 2,487,610$150,000 contribution to the community through QAC’s partnership programme
Master Plan completed
Development planning under way.

“It has been another positive year, with record revenue and passenger numbers. The results confirm the company's strong recovery from the pandemic and are in line with forecast activity levels,” Queenstown Airport Corporation Board Chair Adrienne Young-Cooper said.

Demand for seats on trans-Tasman flights was particularly noteworthy, while domestic demand remained steady.

“We know those flights bring many social and economic benefits for the people and businesses of the Southern Lakes region. Furthermore, they enable us to make a meaningful financial contribution to our community.”

Mrs Young-Cooper announced the board of directors has approved a total dividend for the 2024 financial year of $19.6 million – the highest the company has ever paid. An interim dividend of $5.3 million was paid to shareholders in February, and the remainder will be distributed this month.

The Queenstown Lakes District Council holds 75.01% of QAC shares, so its portion of the annual dividend is $14.7 million, which equates to about $485 per ratepayer.

“Since the COVID-19 pandemic, we have delivered more than $35 million in dividends,” Mrs Young-Cooper said. “We are pleased to be in a position to pay a higher than normal dividend this year ahead of significant investment in our infrastructure.”

Chief Executive Glen Sowry said a highlight of the year was the completion of a Master Plan, which will guide considerable investment in infrastructure at Queenstown Airport over the coming decade.

“We do not underestimate the responsibility we have in managing such an important community asset and we are confident our plan strikes the right balance between investing in the future and protecting what makes Queenstown Airport and our region unique.”

A substantial programme of work to create detailed development plans for the airfield, the terminal, the landside spaces around the terminal, and services and utilities is now under way.

“The resultant capital works programme will be the largest ever undertaken at Queenstown Airport,” Mr Sowry said.

“It will be challenging to manage the complexities of this while normal operations continue, but we have our sights fixed firmly on delivering a world-class outcome. We will use innovation and carefully considered design to develop an efficient, customer-focused airport that reflects this beautiful region well, and meets the needs of its population far into the future.”

The first major project arising from the Master Plan is the installation of an engineered materials arresting system (EMAS) at either end of the main runway, which is to begin late this month.

“We are proud to be the first airport in New Zealand and Australia to install this innovative safety technology, which exceeds compliance with civil aviation regulations and is a tangible demonstration of our determination to surpass expectations,” Mr Sowry said.

Other projects to make the best use of the existing facilities and to improve the customer experience are also being delivered.

During FY24, extra self-service technology was installed and passenger screening capacity was increased with the addition of a fourth lane.

The opening of Provenance, a new cafe and bar with a courtyard that opens up to the airport forecourt, has expanded the food and beverage offering and provided extra landside seating.

The international departure lounge has been upgraded, with new furniture including seating for an addtional 60 people, as well as workstations.

A bathroom refurbishment programme is under way.

“We are also putting considerable effort into upgrading the heating and cooling system, minimising waste, boosting electrical capacity, supporting biodiversity projects, and other sustainability initiatives,” Mr Sowry said.

The company’s annual general meeting will be held in October, when the board and executive team will report on the past financial year, as well as providing an outlook for the year ahead.

Mrs Young-Cooper will retire from the board after the AGM, having served the maximum two terms.

The full annual report is available to download here.

Queenstown Airport will release a Sustainability Report, incorporating climate-related disclosures, in October.