Wellington Airport gets boost from Brisbane but faces festering fleet problems

Overall passenger numbers at Wellington were down but income was up in the year to March 31. Photo / Shane Saheem

Wellington Airport’s domestic passenger numbers slumped but a Brisbane boost and overall international traffic helped it reach a $25.8 million profit.

The airport also had a bump in property income as it published its financial results for the year to March 31.

Total passenger numbers of 5.31 million were down from 5.44 million in the prior financial year.

But international passenger numbers were up from 736,000 to 790,000, with a 37% increase in seats operated to Brisbane cited as a highlight.

Jestar and Air New Zealand both operate direct flights from Wellington to Brisbane.

The airport said airline fleet availability was to blame for the domestic passenger number slowdown.

Wellington Airport chief executive Matt Clarke said fleet availability issues were expected to remain a challenge for the next 12 months.

“Matt is obviously highlighting some of the challenges that they have faced around domestic air capacity,” NZ Airports executive director Billie Moore told the Herald.

“The main challenges we see are for regional routes. That will mainly be the Q300 fleet,” Moore said, referring to the de Havilland 50-seater turboprop.

“We’ve seen reductions from Air New Zealand in terms of the frequency of a lot of these routes.”

Moore said that was because the airline preferred to keep the aircraft overnight at a maintenance hub.

That meant people at regional airports with no maintenance hub would be less likely to secure an early morning commuter flight.

“Overall, Air New Zealand is managing fleet issues across jets, turboprops. That has meant fewer aircraft operating,” Moore said.

“That’s also affecting fleet availability, and that’s going to be a medium-term challenge.”

Moore said aviation faced significant global supply chain issues.

“The challenge we have in New Zealand is Air New Zealand is disproportionately affected by these engine issues.”

The Pratt & Whitney engine maintenance issues impacted the flag carrier’s Airbus A320/321neo.

Maintenance logjams have also impacted Rolls-Royce Trent 1000 engines on some of the airline’s 787-9 Dreamliners.

At Wellington Airport, a major change from the previous financial year was in aero income, up from $86m to $110.4m after a new five-year pricing period kicked in.

The airport said it would invest $400m in infrastructure over five years.

The group reported $130.2m in earnings before interest and taxation, depreciation and amortisation and fair value adjustments (ebitdaf), up from $107.1m a year before.

Operating expenses were up from $52.1m to $55m.

The airport also said it received its first sustainable aviation fuel (Saf) shipment.

Property rent and lease income rose from $18.9m to $20.1m.

Total operating expenses climbed from $36m to $39.1m.

Rates and insurance expenses rose by $1.3m and cleaning and energy costs were up by $927,000.

Last year’s $28.8m loss was influenced by the removal of tax depreciation on commercial buildings, which the airport said impacted the bottom line at many businesses.

Infratil subsidiary NZ Airports owns 66% of the group, and Wellington City Council owns the remaining 34%.

Infratil said the airport’s main customers were Air New Zealand, Jetstar, Qantas and Fiji Airways, and the airport also had an Air Force facility and a 134-room hotel.

John Weekes is a business journalist covering aviation. He has previously covered consumer affairs, crime, politics and court.