A volatile operating environment due to the impact of the Covid-19 pandemic has resulted in a decline in revenue and profits, Queenstown Airport Corporation (QAC) has announced in its half-year earnings report.

QAC says passenger numbers reduced by 27 percent for the period July to December 2021 when compared to the same period in 2020.

“Nationwide and regional lockdowns and movement restrictions were in place for more than half of the six-month reporting period, resulting in significantly reduced passenger and aircraft movements,” QAC board chair Adrienne Young-Cooper said.

“There were no flights between Auckland and Queenstown, usually our busiest route, for 178 days creating an extremely challenging business environment.”

Domestic passenger arrivals and departures decreased by 30 percent to 482,005 over the reporting period.

QAC board chair Adrienne Young-Cooper

The trans-Tasman ‘bubble’ was open for a short period from April 2021 to July 2021. In July there were 12,960 international passenger movements and none for the remainder of the year.

Total operating expenditure increased from $4.5M to $6.4M which Adrienne said is well below pre Covid-19 levels.

“The increase in total expenses in the reporting period compared to the previous year can be attributed to the resumption of some operating expenditure necessary to ensure organisational resilience and preparedness for recovery, including a 10 percent increase in our workforce,” she said.

QAC chief executive officer Glen Sowry said businesses operating at both Queenstown and Wānaka airports have been severely affected. 

“Providing support to the operators at the airports has been an integral part of our response,” Glen said.

“To date 68 tenants have received support, valued at $9.85M, and $2.6M for the reporting period. All businesses at Queenstown Airport are continuing to operate.”

In November 2021 a five-year management services agreement between QAC and the Queenstown Lakes District Council (QLDC) was formalised. Under that agreement QAC will operate and manage Wānaka Airport but does not have responsibility for long-term planning and capital investment decisions for Wānaka Airport.

QAC is a council-controlled trading organisation (CCTO) which owns and operates Queenstown Airport, and manages Wānaka Airport and the Glenorchy airstrip on behalf of QLDC under management services agreements. The company is owned by QLDC (75.01 percent) and Auckland International Airport Limited (24.99 percent.

Find QAC’s full interim report here.

PHOTOS: Supplied