While DIAL's overall revenues were up 4.3%, from $8.15 million to $8.5 million, and it has resumed dividend payments, it has weathered volatility and declines in several areas.
During the year to June, DIAL suffered effects from natural disaster disruptions, ranging from Chile's volcanic activity, Queensland's floods, Japan's tsunami and Christchurch's string of destructive earthquakes and also a large degree of airline flight rescheduling.
Following three years when operating profits were reversed by tax requirements, the previous financial year being down $208,000, DIAL yesterday booked a $120,000 surplus before tax from improved operations.
Similarly, three consecutive years of after-tax losses were turned around to a $713,592 surplus, which included an income tax credit for $593,256.
The airport, which did not offer a dividend last year, will deliver a $264,000 dividend to its shareholders, a 50-50 holding between the Crown and Dunedin City Holdings Ltd, and has signalled a proposal to pay $396,000 in November.
DIAL chairman Richard Walls said New Zealand and Australia had both seen some signs of recovery, "only to have external factors intervene".
"The global financial crisis has come, but not gone, and along with economic and political uncertainty in many economies and increasing oil prices, it is forecast that growth in the air transport industry will at best be modest," Mr Walls said in a statement yesterday.
He said for the first time in a decade, DIAL was reviewing landing charges and consultation with airline customers was under way.
A monitoring report by Tourism Futures International calculated the revenue to Dunedin and the region from visitors through Dunedin International Airport, for the year to June, was around $3.55 million.
That was about 40% above last year's $2.5 million, based on an average spend of $246 per visitor in Otago and Southland.
Mr Walls said while the figure was "relatively small", compared with the major gateway airports of Auckland and Christchurch, it underscored the benefit of direct flights.
This year's budgeted after-tax profit was for a $26,996 return, following last year's loss of $50,357. Mr Walls was "very pleased" with the actual $713,592 profit, which came from maximising revenue opportunities and "the reduction in the provision for deferred taxation", being the tax credit.
Domestic passenger numbers decreased because of Pacific Blue's withdrawal from the domestic market in September 2010, reduced Air New Zealand services and capacity due to Christchurch's quakes, and the cancellation of several domestic and international services because of Chilean volcanic ash cloud.
Budgeted repayments on DIAL's $22 million term loan, to construct its new terminal in 2006, totalled $1.55 million for the year, as planned.
Dunedin airport
Results for full year to June
• Domestic passengers down by 2.4% from 728,689 to 710,845 - a reduction of 5.3% in domestic capacity, or 52,643 seats, compared with last year.
• International passenger numbers up by 32.7%, from 49,501 to 65,663. Compared with last year, airline capacity increased by 34.1%, an increase of 22,739 seats.
• Aeronautical revenues 3% below budget and down 6.2% on last year reflecting the reduction in domestic services, partially offset with the welcome addition by Pacific Blue of a fourth weekly flight to and from Brisbane.
• Non-aeronautical revenues 7.6% above budget and up 10.6% on last year. Key contributors improved trading by terminal concessions and increased revenue from parking.
