Auckland Airport confirms earnings guidance of $160-$170 million
By Fiona Rotherham
Oct. 23 (BusinessDesk) - Auckland International Airport, the country’s main gateway, has confirmed it’s likely to
deliver an underlying net profit of between $160 million and $170 million this financial year, in line with the guidance
it gave in August.
Chairman Henry van der Heyden said at the annual meeting in Auckland today, his first address to shareholders, that the
result would be broadly in line with the underlying net profit the airport recorded in the June 30, 2104, financial
year.
Following a strong financial performance last year which included a $454 million return of capital to shareholders in
April, the company said its main focus for this financial year was continuing to implement its business strategy –
Faster Higher Stronger. The strategy involves growing travel markets, strengthening its consumer business, being faster
and more efficient, and investing for future growth.
Despite a slower start to passenger growth this year compared with last year, industry feedback suggests this upcoming
summer will be one of New Zealand’s busiest ever, said chief executive Adrian Littlewood.
The company has been opening additional retail, food and beverage stores including a new DB bar at the international
terminal and Littlewood said it planned to open several more in the next 12 months. It’s also considering bids for the
duty free concession tender with a decision due early next year. In the first few months of the year online duty free
sales have been eight times higher than they were in the previous year.
It has also started the 50 percent expansion of the Ibis hotel following growth in its hotel business in recent years
and is planning for a third hotel at the airport.
Littlewood reiterated plans for its 30-year vision for the airport which will see build a long-delayed second runway on
airport-owned land around 2025 to cater for an expected almost trebling of passenger numbers to 40 million by 2044. The
second runway may also need to be extended in 30 to 50 years to meet the needs of the larger aircraft forecast to fly
into Auckland in future, he said.
The first part of the vision - a 2,500 square metre expansion of the international baggage hall - is due for completion
by the end of next month. The expanded hall, the first step towards a combined domestic and international terminal, will
increase net lettable area for retail stores by up to 80 percent.
Work has also begun on a concept design to expand the international terminal’s departure area to handle the forecast
higher passenger numbers. The airport did a $26 million upgrade of its domestic terminal building last year which
Littlewood said gave it plenty of time to develop a planned new domestic terminal.
(BusinessDesk)