Daily ShareChat: Auckland International Airport

By Jenny Ruth

Monday 9th November 2009

Auckland International Airport's near-term outlook remains "challenging" but it is well-positioned for a recover in 2011, says Forsyth Barr analyst Jeremy Simpson.

Near-term challenges include a major retail development underway and an uncertain international tourism market. Simpson says the airport also has defensive qualities should the tourism industry slow down further in the near term.

The company left its guidance for the year ending June 2010 unchanged at between $93 million and $100 million and said forecasting remains difficult given the uncertainties around global travel demand. It provided no financial information about the September quarter.

Still, Simpson says international passenger movements continue to track better than he had expected. September-quarter growth was 1.2% to 1.6 million passengers and international arrivals were up 5% in the month of September.

The airport "has said it is too soon to say with confidence that markets are rebounding but there are signs of a slowing in the rate of decline," he says.

As a result, Simpson has upgraded his forecast international passenger growth slightly and increased his 2010 net profit forecast from $96 million to $99 million. He also raised his 2011 forecast net profit by 0.4% to $110 million. His 2012 forecast net profit is $122 million.

BROKER CALL: Forsyth Barr rate Auckland International Airport as accumulate.

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