Queenstown Airport Corp, New Zealand's fourth busiest airport, posted a 7 per cent decline in full-year profit after recognising a charge related to the loss of a tax dispute, while growth in passenger numbers drove up revenue.
Profit fell to $7.8 million in the year ended June 30, from $8.3m a year earlier, and included a non-cash provision of $2.6m related to its adverse tax ruling. Underlying profit rose 27 per cent to $10.5m, matching a 27 per cent gain in revenue to $31.5m.
In July, the airport company lost a dispute with the Inland Revenue Department over whether it should be able to claim depreciation for the cost of constructing its runway end safety area (RESA), with Justice Brendan Brown, in Wellington's High Court, ruling that the RESA didn't qualify as part of the airport runway which would have allowed the airport to claim depreciation.
Operating expenses rose 22 per cent to $10m including costs for runway widening and resurfacing to prepare the airport for evening flights.
"Launching after-dark flights in May was a major milestone for New Zealand aviation and tourism and has ultimately delivered a long-term growth opportunity for the airport and the region's visitor sector", said chairman John Gilks.
