Auckland International Airport Limited (AIAL) has recorded a flat underlying profit for the 2009/10 financial year, with the company expecting to increase its profits over the year ahead.
AIAL’s underlying net profit for the year came in at NZ$105m (A$83m), or only 0.8 per cent lower than the previous year. Revenue decreased by 1.4 per cent to NZ$363m (A$288m), which was less than expected due to the soft market conditions over the year. Operating expenses were down 2.3 per cent to NZ$86.8m (A$68.8m), and capital expenditure decreased by 38 per cent to NZ$54.3m (A$43m).
Operationally, international passenger traffic increased by 2.4 per cent, driven primarily by an increase in arrivals from Australia and increased capacity on trans-Tasman routes. Domestic passenger volumes showed consistent strength to grow 7.8 per, reflecting the impact of a full year of operations by Jetstar.
“With our strategic plan execution well underway, our underlying profit – while still relatively flat – is ahead of where we expected it to be, and with the business fundamentally restructured, Auckland Airport is well positioned to benefit in 2011 and beyond from the operating leverage we have been able to set up,” said AIAL CEO Simon Moutter.
The year ahead is expected to provide greater profit growth for AIAL, with the arrival of new services from Singapore and Houston to Auckland, as well as the growth at Cairns and Mackay airports, where it holds a minority stake. The airport is also expected to see benefits from its recent investment in Queenstown Airport, although this is currently subject to a court challenge by Air New Zealand.