Auckland Airport half year profit up 14pc

Photo / Dean Purcell

Auckland Airport lifted half year underlying profit after tax 14 per cent to $61.5 million, with passenger movements rising as the rapidly developing economies of Asia drove much of the growth in global travel demand.

Revenue for the six months to December was 8.7 per cent higher than a year earlier at $198.3m, with airfield income up 11.7 per cent to $36.7m, mainly due to a return to scheduled pricing on top of volume growth, the airport said today.

Retail revenue was up 12.9 per cent to $54.8m, largely because of investment in the airport's international departures area and a rise in marketing activity and customer choice.

International passenger movements at Auckland, including transits, were up 5 per cent, after continuing improvement in global conditions, and strong Asian visitor arrivals, the airport said.

Domestic passenger movements at Auckland were up 2.6 per cent, with a noticeable impact from October 2010 on growth as a result of the withdrawal of Pacific Blue.

Queenstown Airport had growth of 36.9 per cent in international passengers and 12.1 per cent in domestic passengers. Cairns Airport had passenger growth of 29.4 per cent in international passengers, including transits, and 7.1 per cent in domestic passengers in the same period, while at Mackay Airport domestic passengers were up 13.7 per cent.

Auckland Airport has a 24.55 per cent stake in North Queensland Airports which owns the Cairns and Mackay airports, and a 24.99 per cent stake in Queenstown airport.

An interim dividend of 4c per share is to be paid, with reported net profit up 21.4 per cent to $65.5m.

"Operationally we have kept a firm grip on our capital expenditure, and we have focused on achieving greater efficiencies and improvements to the traveller experience, particularly in terms of passenger processing in collaboration with government border agencies," Auckland Airport said.

It is forecasting full year net profit, excluding fair value changes and other one-off items, to be at the top end, or a little above, previously stated guidance of $112m to $118m.

"We note with some caution any potential impacts from rising fuel prices or impacts on travel demand as a result of the Christchurch earthquake disaster."

- NZPA