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Queenstown Airport FY profit up 13% on passenger growth

Queenstown Airport FY profit up 13% on increased passenger numbers

By Hannah Lynch

Aug. 29 (BusinessDesk) - Queenstown Airport posted a 13.3 percent gain in full-year profit after an increase in passenger numbers helped lift commercial activities, such as retail, rental cars and car parking.

Profit increased to $5.2 million in the 12 months ended June 30, from $4.6 million a year earlier, the company said in statement. Sales rose 12 percent to $17.5 million.

The airport had a record 1.1 million scheduled passengers, made up of a 21 percent increase in international passengers to 195,249 and an 11.6 percent gain in domestic passengers to 851,795.

"The solid performance is driven by the strong increase in passenger numbers," chairman John Gilks said. “Looking ahead, Queenstown Airport is expecting future growth in aircraft and passenger volumes though it will be hard to repeat the double-digit growth rates experienced in the past year."

The increase in passenger numbers helped boost sales in commercial activities including, retail, rental car and car parking.

“Most retailers experienced good growth, and the demand and plans for expanded rental car operators and tenancies grew," Gilk said. "The opening of the new expanded Hertz Car Rental facility, the first commercial development by the Airport outside the terminal in several years, was a highlight and will lift next year’s commercial performance."

The board announced a dividend of $2.6 million taking its total dividend payout to $3.6 million for the 2012 financial year. Queenstown Lake District Council has a 75.1 percent controlling stake in the airport, while Auckland International Airport holds the remaining 24.9 percent.

Gilks said the "strategic alliance" between the two airports continues to benefit both parties.

“Access to greater aeronautical expertise, more competitive insurance rates, more ‘buying power’ in procurement projects as well as increased exposure of Queenstown in Auckland Airport’s international marketing campaigns, are some of the initiatives benefiting Queenstown Airport,” he said.

Seat capacity in and out of Queenstown for the financial period increased by 24.8 percent to 1.3 million.

Shares in Auckland International Airport are down 0.8 percent trading at $2.60. The stock has gained 2.4 percent this year. Its financial results are set for release on Thursday.


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