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Local authority owned Hamilton International Airport has reported an annual after tax surplus of $2.7 million, down on a restated profit of $4.2 million the year before.
The year to June 30 saw domestic passenger numbers up 3 per cent to a record 321,000, but international passenger numbers dropped 16 per cent to 103,016.
Waikato Regional Airport Ltd chairman Jerry Rickman said the loss of scheduled services to Melbourne was one of three major factors adversely affecting the company's financial performance.
The others were increased debt servicing costs, and substantial consulting and legal costs relating to pricing consultations and a judicial review of the introduction of a domestic development levy.
Operating revenues were $5.96m, including landing charges up 11 per cent at $1.29m, carpark revenue up 38 per cent at $1.51m and rental income up 44 per cent at $965,000.
Borrowing costs were up 48 per cent at $896,000.
Loans totalling $6.45m were raised during the year to help fund a terminal upgrade project, establishment of a book and stationery shop within the terminal, and a carpark extension and upgrade.
The airport's total debt at June 30 was $21.22m, against $14.7m previously.
The company was disposing of surplus non-aeronautical parcels of land, the proceeds of which would be used to help both the funding of future capital projects and reduction of debt, Mr Rickman said.
The challenge remained for the company to balance continuing airport development with reducing debt while currently being significantly reliant on one customer, Air New Zealand.
Mr Rickman also told the company's annual general meeting that Hamilton airport and Air NZ had reached agreement about new landing and terminal charges.
The airline had agreed to discontinue legal action over the $5 development levy on passengers departing on domestic flights, while, as previously decided by the airport board, the levy would be reviewed within five years of its introduction in January.
Details of new charges would remain confidential. They would cover the period to June 2010, or earlier subject to consultation with major airport users, Mr Rickman said.
He expected more travellers to fly to Australia from the airport after Air NZ replaced its budget carrier Freedom Airlines on trans-Tasman services from next March.
- NZPA
