QLDC debt set to swallow $14.7m airport payout

The mayor has announced he will use a record payout from a bumper year at Queenstown Airport to pay down his council's debt.

The airport is set to deliver a dividend to shareholders of $19.6 million, $14.7 million of which belongs to the Queenstown Lakes District Council, a 75.01 percent shareholder.

"This is a strong result for QLDC and around $3.4 million beyond earlier forecasts," Mayor Lewers says in a written statement today off the back of the airport releasing its report for the financial year.

"The dividend will be used to pay down debt as per council’s adopted policies and it will therefore enable more breathing space for managing council’s debt ceiling."

Crux has asked for an update from the council on its debt position, which in June had reached $612 million, up $120 million in 12 months.

The airport made $23.2 million in profit after $64.7 million in revenue for the financial year - another record - and the mayor acknowledges this business success in his statement.

"This is a very strong performance and shows that the strong leadership of the board and the executive has developed and maintained a stable, high-performing organisation that delivers on the needs of the community.”

Close to 2.5 million passenger movements were recorded at the airport for the 12 months, and approximately 18,400 plane movements, with demand on trans-Tasman flights particularly strong.

The dividend payout comes ahead of significant investment in the airport, flagged in a master plan signed off by the council late last year.

It equates to $485 per ratepayer.

Main image (Supplied): Queenstown Airport has delivered a record dividend to majority shareholder the Queenstown Lakes District Council.