Auckland Airport confirms flat earnings
Auckland International Airport 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 on Thursday that the result would be broadly in line with the underlying net profit for the June 30, 2104 financial year.
Following a strong financial performance last year which included a $454m 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 at the international terminal and Mr 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 per cent expansion of the Ibis hotel following growth in its hotel business in recent years and is planning for a third hotel at the airport.
Mr Littlewood reiterated plans for the airport's 30-year vision including 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.
