Auckland International Airport has announced a 63 per cent dip in profit to $193.9 million.
It's released its most recent financial results this morning, announcing a big drop in passenger numbers and the absence of a dividend pay out.
The airport's total number of passengers decreased to 15.5 million, down 26.5 per cent on the previous year.
International passenger numbers, which includes transits, were at 8.5 million while domestic passenger numbers were seven million.
Auckland Airport chairman Patrick Strange said the year's results were skewed by a huge drop in passenger numbers after a solid first seven months of the year.
He said the last six months have been the "most challenging of Auckland Airport’s 54-year history".
"The global pandemic and the extremely difficult aviation and tourism operating conditions we have seen over the past six months are far from over."
The airport's earnings before interest, tax, depreciation, fair value adjustments and investments in associates - otherwise known as EBITDAFI - was down by 53.1 per cent to $260.4 million, while revenue was down 23.7 per cent to $567 million.
Cheif executive Adrian Littlewood said the 2020 financial year had been dramatically split in two.
Michael Holland went along to find out how quiet our busiest airport is. (Source: Other)
Due to the significant fall in passenger numbers and the scaling back of the organisation’s infrastructure development programme, Mr Littlewood said they had to make the difficult decision to reduce the size of its workforce.
As at 30 June, these changes had resulted in a 25 per cent reduction in the number of staff and contractors employed by Auckland Airport.
Due to the high uncertainty around international passengers and its strong impact on the airport's commercial performance, combined with the return of nationwide restrictions on people movement due to Covid-19, Mr Littlewood says the company has suspended underlying earnings guidance for the 2021 financial year.
"We will reassess this decision at the October annual meeting and again at our interim results in February 2021.
“As we look to the 2021 financial year, we continue to face significant uncertainty on the timing of Auckland Airport’s recovery. Our financial performance is strongly linked to international arrivals and departures, and while there is no doubt international travel will recover, there is not yet any consensus how and when that will unfold."
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