Auckland Airport has reported higher profits and revenue, with domestic and international passengers both up 2%.
For the six months to December 31, revenue was up 4% to $519.6 million.
Net underlying profit after tax was up 6% to $157.1m.
An interim dividend of 6.5c per share will be paid on April 2, with total dividends of $110.2m.
Total passenger numbers were up 2% to 9.64 million.
Excluding interest income, revenue was up 6% to $512.5m.
Earnings before interest, taxation, depreciation, fair value adjustments and investments in associates (Ebitdafi) was up 6% to $371.3m.
Chief executive Carrie Hurihanganui said the most significant international highlight during the half year was the launch of China Eastern’s Shanghai–Auckland–Buenos Aires service.
That service began on December 4.
“The service places Auckland Airport at the heart of the world’s longest direct flight, delivering an estimated $110m in benefits to New Zealand’s economy annually,” Hurihanganui said.
She said the 2026 financial year had started well for international travel as seat capacity increased 1.8%.
“We were pleased to see Air New Zealand grow its network from Auckland, with seat capacity to Australia up 8.4%, and capacity to the Pacific Islands increasing by 7.3%.”
Jetstar and Qantas lifted seat capacity from Auckland to Australia by 4% and 7.3% respectively during the half year.
“While the passenger demand trajectory is certainly positive, we expect the ongoing global fleet shortages to continue to weigh on the availability of new seat capacity supply and the pace of growth in the near term.”
Hurihanganui said the half-year period saw the biggest boost to domestic jet seat capacity in 10 years.
But capacity was still 7% below the pre-Covid peak.
She said there was a 5% increase in domestic jet seat capacity or 181,000 seats in the local aviation market during the half-year.
The airport said summer peak international departure processing times were 21% faster at 6.5 minutes compared to a year earlier.
The airport praised collaboration with government border agency partners, an expanded arrivals area, new security screening technology, and new express pathway for eligible arriving travellers.
New infrastructure included the 250,000sq m international airfield expansion, new cargo access point to the airfield, and a major upgrade of the stormwater network including a giant bird-proof pond.
The $465m international airfield expansion opened in September.
Hurihanganui said the integrated domestic jet terminal was on track for completion in 2029.
She said construction activity at the international terminal over the next 18 months would become more visible to travellers.
“We are working closely with airlines and government agency partners to minimise impacts as much as possible, particularly during peak travel periods,” she added.
Auckland Airport’s commercial property portfolio had an annualised rent roll of $195.4m, occupancy rates of 99% and a weighted average lease term of 8.7 years.
“While the half-year result reflected softer market conditions for new commercial developments, interest levels from prospective tenants remains positive,” the airport said.
Mānawa Bay shopping centre had 99% occupancy at year’s end.
The Commerce Commission in March will start consultation on amendments to the airport cost of capital input methodologies.
The airport said it would make submissions on that, with a final decision likely in June.
Hurihanganui said overall aeronautical and commercial activity was expected to keep increasing this year.
Auckland Airport narrowed its guidance for underlying profit after tax (excluding any fair value changes and other one-off items) to between $295m and $320m.
Citing softer commercial property market conditions, the airport also narrowed its guidance on capital expenditure to between $1 billion to $1.2b.
Forsyth Barr analysts had been expecting a robust first-half result, with underlying net profit after tax of about $160m, up 8% year-on-year.
They said aeronautical price increases were driving earnings growth, and so were increased passenger numbers as the slow post-Covid recovery continued.
The analysts had forecast a 9% increase in rental income, partly driven by Mānawa Bay shopping centre.
Management will host a first-half 2026 result conference call at 11am for investors.
John Weekes is a business journalist covering aviation and court. He has previously covered consumer affairs, crime, politics and courts.