Auckland Airport says its 22.5% increase in profit for the first half of the 2017 fiscal year reflects continued growth in tourism to New Zealand.
But the company says that improving land transport access to Auckland Airport must remain a priority for central and local government transport agencies as the number of international airlines using the airfield has increased by 50% in 18 months.
The board chair of Auckland Airport Sir Henry van der Hayden says the ongoing growth is putting additional pressure on the city’s transport network.
“We look forward to this year’s completion of the $1.4 billion Waterview Connection and the $146 million upgrade of the State Highway 20A/Kirkbride Road intersection, both of which should improve travel times to the airport,” says van der Heyden
“Auckland Airport will continue to advocate for additional transport improvements, in particular, an upgrade to State Highway 20B/Puhinui Road and improved public transportation services,” says van der Heyden.
Auckland Airport has improved the Puhinui Road roundabout to help improve the eastern access to the airport from State Highway 20B/Puhinui Road and added 1,400 more car parks to the Park&Ride facility, mostly for use by staff working at the international terminal to remove staff traffic from the inner airport roads.
At the same time, it has upgraded the traffic light phasing and lane configurations at the airport’s George Bolt Memorial Drive and Tom Pearce Drive intersection to improve traffic flows as well as updated the lane configurations at the airport’s George Bolt Memorial Drive and Laurence Stevens Drive roundabout.
The Airport also developed new traffic management plans for use when the airport roading network is particularly busy.
In the six months to 31 December 2016, the total number of passengers using the airport increased by 12.4% to 9.4 million. Domestic passengers were up 11.7% to 4.3 million, international passengers (excluding transit passengers) were up 11.9% to 4.8 million and international transit passengers were up 28.6% to 353,978.
Revenue for Auckland Airport was up 10.8% to $310.9 million, while expenses were up 11.8% to $75 million. Earnings before interest expense, taxation, depreciation, fair value adjustments and investments in associates (EBITDAFI) increased 10.5% to $235.9 million.
Total profit after tax was up 22.5% to $141.8 million, while underlying profit was up 18.6% to $123.5 million. As a result, underlying earnings per share is up 18.6% to 10.4 cents and the interim dividend for the 2017 financial year is up 17.6% to 10 cents per share.
Its total share of the underlying profit from associates was $7.6 million for the first six months of the 2017 financial year, up 11.8%. The underlying profit share from Queenstown Airport remained at $1.5 million and the share from the Novotel hotel, in which it increased its shareholding to 50% after balance date, was up 25% to $1 million. The underlying profit share from North Queensland Airports was up 13.3% to $5.1 million.
“Auckland Airport has a long-term growth strategy, and in the first six months of the 2017 financial year, we commenced a review of our 24.55% investment in North Queensland Airports. While we believe North Queensland Airports is a highly attractive asset, the review will ensure that our asset portfolio continues to match our strategic objectives,” says van der Heyden.
