Profit lifts as flyer growth slows

Auckland International Airport has reported revenue of $743.4 million for the 2019 financial year. The airport reported underlying profit after tax was up 4.4 per cent to $274.7 million.

Auckland Airport’s chief executive, Adrian Littlewood, said the airport was undertaking ‘‘a comprehensive overhaul’’ of the entire infrastructure at the airport.

It is in the middle of a huge development programme which will see the airport company spend about $2 billion over the next five years, as part of its ambitious 30-year ‘‘airport of the future’’ vision.

The airport was looking to start work on its international arrivals terminal soon and was ‘‘advanced’’ on procurement, he said.

While passenger growth was slower than in recent years, overall, passenger numbers increased to 21.1 million (up 2.8 per cent on the previous year), with international passenger numbers — including transits — reaching 11.5 million (up 2.2 per cent on the previous year).

Domestic passenger numbers reached 9.6 million (up 3.6 per cent on the previous year).

Littlewood said it had been hard to keep up with the doubledigit passenger growth the airport had experienced in recent years.

‘‘We had a period of three years with incredible and rapid growth and we increased our airline services in Auckland from 18 to 31 in only a couple of years, we were running double-digit growth rates through that time.

‘‘It’s hard to keep that kind of Auckland Airport CEO

momentum up year after year.’’

Patrick Strange, Auckland Airport’s chairman, said it had been another year of growth for the airport.

‘‘We achieved several milestones in the 2019 financial year as part of our infrastructure development programme, including work beginning on two of our eight key anchor infrastructure projects – our airfield expansion and a major upgrade of the inner core of our roading network.’’

In July the airport announced a $100 million project to extend George Bolt Memorial Drive would be expanded from four lanes to six. This year Auckland Airport also completed the upgrade to its international terminal departure area.

Littlewood said Auckland Airport expected to report underlying profit after tax to be between $265m and $275m by June 2020.

‘‘It’s hard to keep that kind of momentum up year after year.’’ Adrian Littlewood