Auckland Airport lands record profit

By Phil Boeyen, ShareChat Business News Editor

Friday 23rd February 2001

It's been a record-breaking six months for Auckland International Airport (NZSE: AIA) with the company posting increases in a number of key targets including a 15% profit jump to $28.5 million.

For the half-year ended December AIA also had a record number of passenger movements. International passenger growth rose 7.9% in the period and domestic passenger growth rose 5.5%.

Revenue hit a record $93 million, up from $84.6 million the previous year.

The airport says the latest result includes the effect of the increases in landing charges and the airport development charge, which took effect at the start of September.

However the result will not reflect any increased landing charge revenue from its biggest customer, Air New Zealand. The airline last year began court action against the charges and is continuing to refuse to pay the fee increase.

AIA says the increased levels of passenger and aircraft activity have meant excellent results for the half-year.

"While a pattern of continued growth is an expectation for companies operating in the global airport sector, the growth levels experienced at Auckland in this particular period are regarded as very positive," the company says.

Revenue growth from the airport's retail clients also helped the latest result.

The 15% profit increase compares with 10% forecast at the company's AGM last November, and the airport says there is every indication the second half of the year will be just as strong

A 5 cents per share interim dividend will be paid.

Comments from our readers

No comments yet