Updated FY16 capital expenditure

Market Release | 22 October 2015

Updated FY16 capital expenditure due to continued tourism and property growth

Auckland Airport has updated its forecast capital expenditure for the 2016 financial year to be between $230 million and $260 million.

Phil Neutze, Auckland Airport’s acting chief financial officer, says, “The updated capital expenditure forecast is a direct result of the strong growth across our business, especially from those parts driven by tourism and property.”

“The updated guidance is an increase of between 12% and 27% on the top end of our initial capital expenditure guidance of between $190 million and $205 million, which we announced earlier this year.”

“This updated guidance includes approximately $135 million of aeronautical capital expenditure, focused on upgrading and expanding our terminal and airfield capacity for passengers and airlines. This will deliver real benefits to the travelling public and make us an even more appealing hub for global aviation.”

“The additional aeronautical capital expenditure also means Auckland Airport will be able to meet peak demand this summer with a new international bus lounge facility, as well as additional layover stands for the larger Code E aircraft, such as Airbus’
350 XWB and Boeing’s B777 and B787-8 Dreamliner.”

“I am confident that our investment programme means we are catering for our short-term aeronautical capacity, the strong property demand pipeline and aligns with our longer-term plans for the next 30-years and beyond,” says Mr Neutze.

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