Wellington Airport revenue up
WELLINGTON: Wellington International Airport lifted annual earnings 6.3% as the capital city’s gateway continued to benefit from rising passenger numbers.
Earnings before interest, tax, depreciation and amortisation rose to $101.4 million in the year ended March 31, from $95.4 million, and revenue was up 7.2% at $137.9 million.
The airport moved 5.5 million domestic passengers in the year, up 4.6% from a year earlier, and more than 929,000 international passengers, an increase of 3.8%.
Aircraft and terminal charges were up 7% at $81.5 million, and retail and trading income rose 8.1% to $43.5 million. Property income, which included the midFebruary opening of the Rydges Hotel, increased 5.2% to $12.9 million.
The airport is 66%owned by Infratil, which is due to report its annual earnings today, and Wellington City Council. Infratil takes a subvention payment in lieu of a dividend, and received $40.5 million for the 2019 financial year, up from $37.9 million. The council’s dividend rose to $12.6 million, from $11.9 million in 2018. The local authority also received $3.3 million in rates, up from $3.1 million.
Net profit fell to $23.5 million from $24.7 million, principally because of a smaller increase in the unrealised value of its property portfolio. The fair value gain of $4.8 million compared with an $11.5 million gain in 2018.
The airport operator recently completed a $300 million, fiveyear investment programme, including development of new parking facilities and the Rydges Hotel.
Infratil last month flagged expected capital spending of about $100 million for the 2020 financial year.
‘‘Looking to the future, the airport is currently developing its master plan to address forecast growth and the challenges and opportunities that presents.
‘‘The draft plan is currently being consulted on with airlines,’’ the company said yesterday, in its annual review.
Last month, it withdrew its application for consent to extend its runway after the Civil Aviation Authority said a new modelling tool for the proposed runway end safety areas should be applied to the project.
While it was a difficult decision to make, it had provided ‘‘the airport, airline customers and decisionmakers with clarity and certainty’’, the company said.
‘‘It is critical to get this vital safety feature right and ensure our application is robust.’’
Two of the airport’s five listed debt securities traded yesterday.
Its 2021 bonds, paying annual interest of 6.25%, traded at a yield of 2.52%, down 3 basis points.
Its 2024 bonds, paying 4%, traded at a yield of 2.95%, down 5 basis points. — BusinessDesk