AIA rakes in record profit

By Phil Boeyen, ShareChat Business News Editor

Friday 1st September 2000

Auckland Airport says both revenue and profitability for the full year to June have come in at record levels, with after tax profit rising 20% to $51 million on revenue of $170 million.

The company says higher levels of activity have provided the profit boost, although falling operating costs also helped. The results are slight ahead of market expectations.

Since balance date the company says business has continued to increase, and the next revenue bonus is expected to come from activity related to the Sydney Olympics. More property development will also fuel growth, with further projects already under consideration.

Its investment property portfolio, which is revalued to market each year, now stands at just under $60 million. This includes an increase in the revaluation reserve of $2.544 million, and new investment properties worth $6.789 million.

Landing fees at the airport have been increased from today, rising 8.5%, and will be followed by further increases on September 1st next year and in 2002. AIA says these are the first increases since 1992.

It is also putting up departure fees for international passengers. The fee will rise from $20 to $22 from the start of next month.

AIA says both increases came about after an extensive consultation process, and it had tried to balance the various interests of the shareholders, customers, visitors to New Zealand, the travelling public, and the region as a whole.

A 5-year capital expenditure programme to renovate runways, taxiways and aprons is continuing, at an estimated cost of $140 million.

A final dividend of 5.2 cents will be paid to shareholders on the register at the close of business on November 10th.

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