28 May 2020

Wellington airport reports strong full year profit

3:36 pm on 28 May 2020

Wellington airport has made a strong full year profit, with the impacts of the Covid-19 lockdown not materialising just yet.

Wellington Airport departures

Photo: RNZ / Rebekah Parsons-King

For the 12 months to the end of March the company and its subsidiaries made a net profit of $28.9 million, up almost 23 percent on last year.

Revenue was also up just over 6 percent to $146.m, due to a boost in retail and trading activities.

However, the company said the Covid-19 restrictions have had a significant impact on business, the magnitude of which remains uncertain.

In its annual report it outlined a number of cost-cutting measures it had implemented.

"This has included reducing operating expenditure, by reducing the number of airport staff, salary reductions and implementation of a 4-day working week," the report said.

"Other expenditure has also been reduced, including reduced passenger-related costs and non-essential or discretionary costs.

"In addition, capital expenditure has been substantially resized to provide for the maintenance of critical services and required expenditure."

The company has also increased its debt facility with its bank to $170m.

In April, the airport's passenger numbers were 98.8 percent below the same month last year.

The company expects a return to normal trading conditions for the year ended March 2022.

The Group is 66 percent owned by NZ Airports Limited, which is wholly owned by Infratil Limited. Wellington City Council owns the remaining 34 percent of the Group.

Its subsidiaries include WANT Limited, a noise mitigation company, Whare Manaakitanga Limited, a hotel and Meitaki Limited, a captive insurance firm to manage the airports insurances.

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