Christchurch Airport reports a financial year
2018 (ending 30 June 2018) which saw passenger numbers reach a
record 6.87 million (up from 6.57m). Long-haul passenger numbers
lead the way with growth of 17% year on year, trans-Tasman
passenger numbers grew 5% and domestic passenger numbers grew
Average airline charges per passenger at
Christchurch fell 8.4% to $11.11 ($12.13 the previous year).
Christchurch Airport reset its aeronautical charges effective 1
Total reported revenue grew 10.8% to $236
million ($213m prior year), operating expenses fell 2.3% to $67
million ($69m prior year) and NPAT grew 37% to $89 million ($65m
prior year). The Board declared annual dividends of $40 million, up
5.5% ($38m prior year).
Chief Executive Malcolm Johns says the strategy
reset the company undertook in 2014/15 has begun to produce
"All parts of the business are now showing
pleasing commercial maturity in the way we are building our
business, enhancing customer journeys and being great kaitiaki
focused on safety and sustainability," he says.
In the past year, international visitor arrivals
at Christchurch grew 8.5% compared to the national growth rate of
3.9%. Australia grew 7.8% (national growth was 1.4%), China grew
25% (national growth was 12.8%), UK grew 5.2% (national growth was
negative 3.7%) and the United States grew 11.8% (national growth
"In terms of transit points to and from the
South Island, the three key Tasman airport hubs of Melbourne,
Sydney and Brisbane have been gaining more market share than
Auckland for the past few years and we saw this continue in FY18,"
says Mr Johns.
"Australian hubs have more connections and more
competition for traffic. This is leading to many markets finding it
more economic and more convenient to hub via Australia into and out
of the South Island. Singapore is a great example - more than 70%
of the FY18 growth in international visitor arrivals between
Singapore and Christchurch (+19%) has come from Singaporeans
transiting through Australia to get to/from the South Island."
Property income accounted for 19% of the airport
company's total revenue in FY18 and developing vacant land
continued, with the company securing Bunnings Warehouse as an
anchor tenant for a new trade retail precinct (called Harvard Park)
at the northern end of the airport campus. Construction will start
The airport company invested around $85 million
in new land and buildings during the financial year, ending the
year with 98% of property leased with a weighted average lease term
(WALT) of 6.5 years (up from 6.45 years).
"Developing our vacant land in a way which
services those wanting to be located around the airport, in a way
that builds shareholder returns and the company's value, has been a
key focus for the past few years," says Mr Johns.
"The only disappointment for us in FY18 was the
delay in the contractor completing construction of Novotel
Christchurch Airport. We do not expect this delay to have a
negative financial impact on the airport company, however the hotel
is a game changer for us as we service the strong growth in early
morning and late night Tasman flights (set to grow by more than 10%
over the next year). Our focus is on working with the contractor to
complete construction so we can open the hotel and welcome
The Chief Executive says the extraordinary
result is a tribute to the Christchurch Airport team.
"The whole team has done a fantastic job over
the past few years. From where we were in FY14, they have grown the
business against the backdrop of a city still building its visitor
infrastructure. They have had the courage to have honest and hard
conversations, they have self-imposed solid strategic and
commercial processes to step-change the business, at the same time
maintaining the number one position for airport service quality
across Australia and New Zealand - plus they haven't taken their
eye off safety or sustainability outcomes. I'm super proud of