Passenger movements and revenue were up at Dunedin International Airport - boosted by Australian connections - but the after-tax surplus for the six-months to December has slumped from $113,000 during the previous corresponding period (pcp) to a deficit of $14,000.
Most of that decline was from higher taxation charges of $80,000, because of Government changes to depreciation, and increasing costs, including dairy farm operations, interest and marketing costs, amounting to $4.2 million, or a 10% increase pcp.
In its unaudited report, DIA said total passenger movements were up 6%, comprised of a 3% increase domestically, to 371,299, and a 53% increase in international movements, to 35,268.
DIA chairman Richard Walls said, while he was "disappointed" with the $14,000 deficit, much of that was an accounting adjustment as opposed to a loss.
Overall, he was pleased with the increase in passenger numbers, especially those of Australian and other foreign arrivals, whose numbers rose from 3409 to 8390 for the six months.
The increased passenger numbers were credited to Pacific Blue services, which had since been withdrawn from domestic routes but to some extent had been replaced by a new Air New Zealand service to the North Island, which had the capacity to grow with larger aircraft in the future.
However, Mr Walls cautioned it was impossible to measure what impact the recent floods in Australia, in particular in Queensland, would have on transtasman travel demand.
Peak-time parking pressure had been relieved, with 100 additional car parks available after the relocation of rental car spaces, and apron upgrade work was completed in December to accommodate the introduction of Air New Zealand's A320 Airbuses.
Revenue contributed to Dunedin and the wider region for the six months to December increased 60% pcp, from $1.9 million to $3.1 million, Mr Walls said.
DIA's dairy operations were hit by "unsettled spring weather", with the need to buy stock food and fertiliser, plus payments to improve effluent disposal, Mr Walls said.
"The company is currently reassessing the overall operations of its dairy unit to improve its operations and increase the financial returns," he said.
DIA is not paying an interim dividend, but intends to pay a full-year dividend.
