KEY POINTS:
Auckland International Airport Ltd is being affected by the global financial crisis and expects full-year profit will be at the bottom of a predicted range.
This was the message to shareholders at the annual meeting today.
Chairman Tony Frankham said that while the airport had a strong balance sheet and solid fundamentals in its revenue streams, it was not immune to the effects of a global recession.
A reduction in passenger number volumes from long-haul markets was likely but the airport had new customers with the start of services by Pacific Blue and the announcement of new flights by Jetstar.
"Auckland Airport has reviewed forecasts in light of these changes and, based on the latest information available, we forecast earnings, consistent with the previous guidance of $100-110 million surplus after tax (excluding fair value changes for property) for the full year, albeit at the lower end," he said.
He put a range of caveats on this position, including any further deterioration in global markets or regional economies as well as material adverse events, significant one-off expenses, or other unforeseeable events.
The company today disclosed a surplus after tax of $24.2m for the first three months of the new year, up from $23.8m last year. Revenue increased 5.5 per cent to $87.2m and operating earnings rose 5.8 per cent to $66.6m.
International passenger volumes were down 1.8 per cent in the first three months.
Domestic passenger movements rose 8.7 per cent and total aircraft movements were up 3.9 per cent.
"Our present focus is on getting the best from the business as it stands, while we put the new management team in place to develop and execute business strategies for the next phase of the company's growth.
"As a board, we are committed to increasing the clarity of our strategic communications with shareholders in order to confirm their continued commitment to the company."
- NZPA
