Christchurch International Airport Limited (CIAL) Analysis

Overview

Christchurch International Airport Limited (CIAL) is the owner and operator of Christchurch International Airport (Airport). Primarily, CIAL is responsible for the efficient and safe operation of the Airport, whilst aiming to provide the Airport's diversity of users with modern, appropriate and efficient facilities and services.

The Crown (i.e. the New Zealand Government) has a 25% shareholding in CIAL and such ownership is exercised through two shareholding Ministers, being the Minister of Finance and the Minister for State-Owned Enterprises (who each hold 12.5%). The remaining 75% is owned by Christchurch City Holdings Limited, a 100% owned subsidiary of the Christchurch City Council.

The Airport is located 10 kilometres northwest of Christchurch city centre, on the western city development edge and is a critical piece of significant national and regional infrastructure. As the gateway for Christchurch and the South Island, the Airport is New Zealand's second largest airport and is the busiest air connection for South Island trade and tourism markets.

There are four airlines providing domestic services from the Airport, and nine operating short and long-haul international services. CIAL welcomed more than 6.5 million passengers in the 2017 financial year.

The Airport owns or leases (in perpetuity) around 1,000 hectares of land, which includes:

- a two-runway system (that are not subject to any curfew) with a main runway and a cross wind runway that intersects the main runway;

- the recently developed CIAL terminal complex; and

- infrastructure and airfields.

The Airport is one of only two in New Zealand capable of handling direct long-haul international services operated by "wide-bodied" aircraft. (i.e. direct services to international destinations other than Australia).

Within the Airport terminal, CIAL leases space to a wide variety of businesses including airline operators, duty free shops, food outlets, retail and rental car operators. The Airport also has car parking facilities, and significant ground and property leasing activity across the greater airport campus. On the airfield, it leases space to airlines, freight companies, the Canterbury Aero Club and numerous general aviation businesses.

The Airport is also home to the Antarctic research programs of the United States of America and New Zealand, making it one of only five Antarctic gateway cities in the world.

Performance

The following information was extracted from Christchurch International Airport Limited's Half Year results, released on 26 February 2025:

Christchurch Airport reports a 10.5% increase in half year profit driven by international passenger growth and a strong property portfolio performance. Christchurch International Airport has reported a strong financial performance for the first half of the 2025 financial year, with net profit increasing by 10.5% to $23.8 million compared to the same period last year.

Sarah Ottrey, Board Chair, said “As a key asset for Christchurch city and the South Island, Christchurch Airport is pleased with this growth enabling a dividend pay-out to its 75% shareholder Christchurch City Holdings Ltd of just under $16 million for this first half year”.

The six months to 31 December 2024 saw continued recovery in international travel, strong commercial revenue growth, and investment in key infrastructure projects, positioning the airport for sustained success.

Key Highlights:

• Total revenue increased by 4.5% to $120.8 million.
• Net profit rose to $23.8 million, a 10.5% increase on the previous year.
• Interim dividend declared at $21.3 million (37.0 cents per share), up 12% from FY24.
• Total passenger numbers reached 3.17 million, with international passengers up 11%, compared to same period last year.
• Occupancy rates in the airport’s property portfolio remained exceptionally high at 99.5%, including strong performance from the Novotel Hotel.
• Enhanced customer experience. Eight new food and beverage offerings opened along with a new customer food court.
• Kowhai Park solar farm commenced development.