Airport profit up but passengers slowing

By Phil Boeyen, ShareChat Business News Editor

Wednesday 21st November 2001

Auckland International Airport has lifted profits by 15% in the first four months of the financial year but says forecasting the second half result is difficult in the current climate.

The airport's chairman, Wayne Boyd, revealed the updated profit figures on Wednesday at the company's annual general meeting.

Mr Boyd says revenue for the four months ended October was up 10% to $65.5 million compared to the same period last year while the after-tax surplus climbed 15% to $21 million.

"The board remains confident that the full year-end result should be another record year - in excess of last year's $59.1 million," says Mr Boyd.

"The difficulty we have is being able to forecast what is likely to happen in the second half of the year and we believe this will only become somewhat clearer in February/March, following the traditionally busy Christmas/New Year period."

The airport says before September 11 international passenger numbers were tracking over 10% ahead of the same time last year and remained positive until the middle of October.

However since then it says numbers have been running below last year's levels, although no real trend has developed.

"It will most likely not be until February-March next year that we can evaluate with any certainty the ultimate impact on this year's financial performance," says Mr Boyd.

"Recent surveys are in fact now indicating that the expected impact may be a lot less negative than originally expected, with visitor numbers for the November-March season expected to remain at the same level as last year and indeed to rebound next summer."

Mr Boyd also told shareholders that while it's not yet known how the reduced Air New Zealand flights will affect earnings, the impact of the Ansett Australia demise is limited.

Air NZ is the airport's single largest customer, accounting for nearly 60% of the landing charges and around 15% of total revenue.

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