Auckland Airport's first half profits up 17 per cent

February 16, 2018
Robert Patman outlined the impact on Kiwi travellers with extra airport screening to fly to the US.

Auckland International Airport, New Zealand's busiest gateway, has posted a 17 per cent gain in first-half profit.

Profit rose to $165.9 million in the six months ended December 31, from $133m a year earlier, the company said on Friday.

Revenue climbed 6.9 per cent to $332m, which it said reflected a 2.7 per cent increase in aeronautical revenue "driven by passenger growth and increasing runway movements".

Retail income grew 10.2 percent.

The airport company said full-year underlying profit would be in a range of $250m to $257m, narrower than the $248m to $257m estimate it gave at the time of its 2017 results.

The results come as the company gears up for a $1.8-billion infrastructure spending programme over the next five years, the biggest such investment in the airport's history.

It will develop three more contact gates for international aircraft, a new domestic jet terminal, expanded border processing and public arrivals space, an upgraded international check-in area and investment in public transport, roading, and walking projects. It also plans to take steps in the next five years toward opening a second runway it currently expects to be required by 2028.

"The first half of the 2018 financial year also saw the company maintain its strong focus on upgrading its airport infrastructure and providing the best possible customer experience during a time of significant change," chairman Henry van der Heyden said.

Auckland Airport's share of underlying profit from associates rose 47 per cent to $11.2 million, with strong growth from Queenstown Airport, its share of the Novotel hotel and contribution from North Queensland Airports.

The company will pay a fully imputed interim dividend of 10.75 cents a share, up 7.5 percent from a year earlier.

Auckland Airport shares last traded at $6.285 and have declined 3 per cent this year.

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