Christchurch Airport has reported a substantial increase in its dividend, highlighting a successful strategy of diversification and a surge in international traffic.
The airport’s total operating revenue reached $233.1 million, marking a 15% increase from the previous year.
The underlying operating profit after tax rose by 37% to $41.8 million, and the total declared annual dividend increased by $10 million, reaching $37.6 million.
Board Chair Sarah Ottrey said “this strong trading performance is a clear reflection of Christchurch Airport’s well-executed intergenerational strategy.
“By concentrating on growing a diversified business of planes plus passengers plus property, we are delivering a growing and consistent revenue stream.”
Out of the total $37.6 million dividend, $19 million was paid to shareholders in April, with a final dividend of $18.7 million to be distributed after the Annual General Meeting in October.
Christchurch City Council, which owns 75% of the airport’s shares, is set to receive a significant dividend of $28.2 million for FY24 through its investment arm, Christchurch City Holdings Limited.
Despite a net surplus after tax of $22.7 million, Christchurch Airport’s financial results were impacted by the Government’s removal of tax depreciation on commercial buildings, leading to a one-off impact of $30.1 million on the reported surplus for FY24.
CEO 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.”
The airport saw a total of 6.25 million passengers in the last year, with domestic travel increasing by 5% and international travel soaring by 33%.
Watson attributed this growth to Christchurch’s rising appeal as a destination, supported by new infrastructure such as Te Pae, Riverside, The Terrace, and enhanced cruise facilities.
“Our growth is in part due to the attractiveness of Christchurch as a destination. The city has once again risen to the top of highly attractive destinations for both business and recreation.”
Christchurch Airport continues to be a major employment hub in the South Island, with over 250 businesses and 7,000 employees on its campus. Lease occupancy remains high at 96% across its investment property portfolio.
Christchurch Airport is undertaking its largest terminal upgrade since 2013. The upgrade will include twelve new food and beverage outlets, improved layouts, seating areas, and a children’s play area.
