Hawke's Bay Airport out performs projections in half year interim report

Hawke’s Bay Airport is out-performing its anticipated budget and exceeding projections on all fronts with strong growth in passenger numbers, total revenue and profit.

The region’s Airport’s Interim Report for the first half year ending 31 December 2016 has been released with the Airport Company looking incredibly strong ahead of its major new terminal redevelopment and new entrance way project via SH2 and Watchman Road.

The interim report highlights included:
• A total of 326,489 passengers flew in and out of the region, 20.1% above the budget for the period and an increase of 55,978 passengers (20.7%) over the same period last year. The Company is forecasting to significantly exceed its full year budget of 552,080 by 30 June 2017
• Total revenue of $3,058,179 was 5.9% above budget with operating expenses 4.2% below budget
• Profit after tax at $990,240 was 18.2% above budget and increased by $344,947 or 53.5% on the same period last year
• A dividend of $562,000 paid to Shareholders who include; the Crown 50%, Napier City Council 26% and Hastings District Council 24%
• Debt of $900,000 was $500,000 or 35.7% lower than at the same period last year

During the Half Year the Airport Company completed the extension of the secure car park, which included the creation of 140 additional car parking spaces. The Company also established two new roles and appointed, Graham Eagles as the Airport’s Infrastructure Manager and Dean Smith as the Commercial Manager.

Hawke’s Bay Airport Company Chairman Tony Porter said: “The results of this Interim Report are exciting for the region and really do highlight the positive impact for the Airport in servicing two main airlines. We have anticipated a full year profit after tax budget to be $1.5m but based on current performance we expect to exceed this target.

“We are pleased that we are continuing to experience such strong growth while also managing the associated challenges on our infrastructure that are coupled with this.”

Mr Porter continued: “Within this reporting period we have almost doubled the secure car park to provide 293 spaces. We have undertaken an extensive consultation with the airlines to ensure their needs are met, we have finalised the terminal redevelopment plans and have put the project out to tender. With such consistent and steady growth of the Airport Company we identified a need to recruit an Infrastructure Manager and Commercial Manager to ensure a strong team is in place to manage the next phase of growth at the airport which will also include the new Watchman Road Airport entranceway,” added Mr Porter.

“We do anticipate operating expenses for the second half of 2017 financial year to increase as a result of an increased cost of the Rescue Fire Service contract and the appointment of two senior staff, however we are confident the Airport will continue to experience growth within a robust infrastructure and provide visitors to the Airport with a world-class experience,” said Mr Porter.