Hamilton Airport will pay its five shareholding councils a $1 million dividend before Christmas – its largest dividend ever.
The dividend will be split between Hamilton City, Ōtorohanga, Waipā, Waikato and Matamata-Piako District Council based on their shareholding. Hamiton City will receive around $500,000, with Waipā, Waikato and Matamata-Piako District Councils pocketing around $156,000 each. Ōtorohanga District Council will pick up close to $31,000.
The dividend comes on the back of the airport’s return to profitability for the first time since 2019, without relying on land sales or valuation adjustments.
Waikato Regional Airport Ltd (WRAL) chief executive Mark Morgan said the airport had delivered a very strong financial year, exceeding budgets. Operating revenue including aeronautical income and profitability, along with aircraft movements and passenger numbers were all up.
“Our financial results reflect our first full 12 months of international services between Hamilton and Australia, plus the new jet services between Hamilton and Christchurch added during the year,” he said.
“Our property business contributed strongly to our balance sheet and there will be significant growth from that next year when we complete investment in the Precinct North business park.”
Morgan said he was very proud of the results and the airport team, particularly given the significant capital investment over the past two years in preparation for international services. That investment also included completing stage one of Precinct North and its first significant industrial building.
The dividend was well received by shareholders when announced this week, Morgan said. It follows a “modest” $450,000 dividend paid to shareholders last year and a $500,000 dividend in both 2022 and 2023.
“Over the years our shareholders have patiently taken a long-term view of the airport. That has allowed us to invest in a 10-year diversification strategy beginning in 2018 and that is now delivering real benefits and growth,” Morgan said.
“Since Hamilton Airport was sold by the Crown to the five council shareholders in 1989, shareholders have further invested less than $15 million of ratepayer funds. WRAL now has assets of $380 million and the wider region is reaping the economic benefits of a major regional asset which remains in community ownership.”
Morgan was optimistic about the ongoing growth of the airport but cautious about the immediate outlook.
“Any material growth in our aeronautical business is being hampered by persistently high global fuel prices. We’re working hard to make Hamilton the airport of choice for airlines and travellers, but it’s certainly a subdued environment and airlines value certainty.”
Ongoing support from the travelling public was vital to securing future growth, he said.
“Our passenger numbers are at a record high with 530,000 passengers using Hamilton Airport last year heading to Sydney, the Gold Coast, Wellington and Christchurch. We need that growth to continue if we are to attract more airlines and build more routes out of Hamilton. We’re looking to the community to support us in that.”
