Auckland Airport has posted a profit of $309 million, a slight drop from the previous financial year, as the number of passengers passing through the travel hub jumped to over 19 million.
Releasing its financial results for the 12 months to June 30 today, the airport said revenue had increased 3% to $1.036 billion. Excluding interest income, revenue was $1.026 billion – an increase of 5%.
Operating earnings before interest, tax, depreciation, amortisation and fair value adjustments (EBITDAFI) were $724 million, up 3% from the previous financial year.
Net underlying profit after tax was down 0.5% to $309 million, and reported profit after tax including revaluations decreased to $335 million.
Investors will receive a final dividend of 6.75 cents per share, to be paid on October 2.
In a statement this morning, the airport said the results were underpinned by "resilient demand for travel to and from New Zealand despite a more volatile global aviation environment in the second half of the year".
The war in Iran has heavily impacted the aviation sector, with supply chain disruptions driving fuel price volatility. Strikes at major transport hubs in the Middle East, such as Dubai and Doha, have also made air travel unpredictable.
According to Stats NZ, domestic and international airfares both rose 14% and 3.5%, respectively, in the 12 months to July. Compared to June of this year, domestic airfares were up 20.7%, while international airfares increased 10.9%.
“We have managed through the fuel situation with discipline, while continuing to build the airport infrastructure and support the operational resilience New Zealand’s gateway airport will need for the decades ahead,” Auckland Airport chief executive Carrie Hurihanganui said.
The number of people moving through the airport increased 1.6% to 19.04 million. Domestic passenger movements grew 1.7% to 8.6 million, while international passenger movements (including transits) rose 1.6% to 10.5 million.
The airport saw a 4% lift in trans-Tasman capacity, while travel from the US declined slightly by 3%. Chinese visitation was up 11%, attributed to visa-free entry to China for New Zealanders and the launch of the Shanghai-Auckland-Buenos Aires service by China Eastern.
“The global aviation market became more challenging in the second half of the financial year, as geopolitical instability drove fuel price volatility and prompted airlines to reassess capacity deployed across their networks,” Auckland Airport chair Julia Hoare said.
“This, alongside global aircraft supply constraints, resulted in seat capacity falling 6% from planned levels in the final four months of the financial year. We have worked closely with regional airlines as they responded to the fuel price pressures, including supporting them with approximately $3.5 million in targeted rental abatements across the financial year.”
The airport also saw $1 billion in assets commissioned, including the opening of the 250,000-square-metre northern airfield expansion and major stormwater improvements. Progress was also made on the new domestic jet terminal and airfield works, as well as the transformation of the international check-in area.
Looking foward, the airport said its guidance for underlying profit after tax is between $290 million and $330 million for FY27.
Meanwhile, Kiwibank released its results today, posting a $174 million net profit after tax, a drop from $191 million in the previous 12 months.
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