Airport lifts profit despite industry setbacks

By Phil Boeyen, ShareChat Business News Editor

Thursday 28th February 2002

Auckland International Airport (NZSE: AIA) has turned in a strong interim profit result and says international passenger movements are on the rise again after dropping back in the second quarter last year.

The company has reported net profit growth of 23% for the six months ended December to $35.1 million, with revenue rising to $99.7 million from $93 million the year before.

The result for the full six months compares with a surplus after tax of $21 million for the four months ended October reported at the annual general meeting in November.

At the time the company said that international passenger numbers had been growing by over 10% until the events of September 11 and remained positive until the middle of October. The numbers then began running below the previous year's levels.

However, the negative growth appears to have been short-lived.

"The trend in international passengers for January and February 2002 has been positive with movements an encouraging 2.8% ahead of the same two months last year," the company reported on Thursday.

During the first half the airport had to contend with the flow on effects of the September 11 events plus Ansett's demise and concerns over whether its biggest customer, Air NZ, would survive.

"In the circumstances, our company's result represents an excellent achievement and reflects the underlying strength of the company, its activities, management and people."

Directors also remain optimistic on the full year result given the improvements so far this year in international passenger numbers.

"It remains extremely difficult to predict how trends in international air travel will develop over the next six months.

"Current indications are that the decline in activity levels will not be as significant as first thought and that a return to prior growth patterns could well occur before the end of the 2002 calendar year."

Interim profit before tax was $50.24 million and the company believes the second half could well match that result. That would give an annual pre-tax operating profit of around $100 million - 13% higher than the $88.5 million the previous year.

A fully imputed interim dividend of 6 cents per share will be paid out representing 71.9% of the surplus after tax.

The New Zealand sharemarket immediately applauded the company's ability to increase revenues and profits in challenging times, pushing up the shares to over $4.00.

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