Nelson Airport reported a 12 percent increase in full-year net profit on continued passenger growth and an increase in work through the aircraft maintenance business Air New Zealand operates there.

Passenger traffic increased 6 percent to 1.06 million in the year ended June 30, led by a 9 percent increase on Auckland services to 482,000.

Chairman Paul Steere said the result was a significant achievement given the major terminal redevelopment underway throughout the period. A new control tower began operations last month and the first stage of the new terminal will open next month.

“Strong leadership and management have enabled the development of our terminal and parking facilities whilst continuing the efficient day-to-day operations and growth as one of New Zealand’s busiest regional airports,” Steere said.

The airport, owned by Nelson City Council, Tasman District Council and the Crown, is benefiting from a boom in regional tourism and an increase in airlines operating from Nelson. Six airlines fly from the airport, up from four in 2015 when just over 746,100 travellers used its services. Jetstar started regional services from Nelson the following year.

Chief executive Rob Evans said the terminal upgrades and other infrastructure investments will reduce capacity constraints, improve health and safety and the experience of customers. It will also provide additional revenue opportunities.

Revenue increased to $10.1 million in the year through June, up 11 percent from the year before. Net profit increased to $3.4 million and earnings before interest, tax, depreciation and amortisation rose 10 percent to $6.4 million.

Evans noted that Air New Zealand’s regional maintenance business added Fiji Airways to its customers during the period. The year before the facility started servicing Virgin Australia’s ATR aircraft.

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