The value of Waipā District Council’s shareholding in Waikato Regional Airport dropped by 1.7 per cent in the last year against a backdrop of falling profits.
Mark Morgan Waikato Regional Airport
The value of the council’s 777,110 shares in Waikato Regional Airport Ltd (WRAL) was reported as being worth $35.87 million in the year ending June 30, down from $36.493 million in 2023-24.
The airport company reported an 80 per cent plunge in pre-tax profit from $18.6 million to a $3.6 million.
There was a drop in airline passenger numbers and hotel occupancy, but aeronautical income was up.
Chief executive Mark Morgan blamed the challenging travel and tourism environment for the performance.
“In 2022-23 we saw record sales for Titanium Park with the successful completion of the fifth stage of the central precinct. We anticipated we would not get the same return from land sales this year and expect that to continue in the near future given the staged nature of our property development activities.”
Hamilton Airport – planes on the apron
Board chair and former Hamilton City Council chief executive Barry Harris said the company had navigated several challenges in the harder than expected economic conditions encountered.
“What sets 2024 apart from recent years is the reduced contribution of land sales, and instead this year’s results are underpinned by growth of several key operating revenue streams,” he said.
“Titanium Park’s staged approach to development of land means there is some variability in land sales, and 2024 was always expected to yield minimal land sales after the highs of 2023 which saw much of the Central Precinct sold off the plans.”
Harris said significant progress had been made in developing aeronautical opportunities in both the airline and general aviation sectors.
“The Hamilton Training Facility will be re-purposed as it has key that make it attractive to aviation operators who are currently engaged exploring how the facility can support their growth aspirations for their presence at Hamilton Airport, most notably from the aero-medical sector.”
Waipa mayor Susan O’Regan listens intently to Airport chief executive Mark Morgan. Photo: Mary Anne Gill.
