Auckland Airport spending plans soar
AUCKLAND International Airport has boosted spending plans by tens of millions of dollars, with passengers and airlines to benefit from the cash splash.
The NZX-listed company, which had its annual meeting yesterday, significantly hiked forecast capital expenditure for the 2016 financial year.
The new forecast range of between $230 million and $260m is up from $190m to $205m announced earlier in the year.
Acting chief financial officer Phil Neutze said the updated figure included about $135m to be spent upgrading and expanding terminal and airfield capacity.
A new international bus lounge and more layover stands for larger aircraft, such as Boeing 777s and Airbus A350s, would help meet peak demand over the summer months, he said.
Despite the extra spending, the company still expects to make an underlying net profit of between $183m and $191m for the year.
Auckland International Airport shares slipped 0.6 per cent to $5.20 as at midday yesterday, but have soared 42 per cent over the last 12 months.
Chief executive Adrian Littlewood said the company’s 30-year vision for the ‘‘airport of the future’’, announced last year, was going ‘‘full-steam ahead’’.
The second of two new baggage belts would open before Christmas, which would increase capacity for international baggage claims by 40 per cent. The new bus lounge would be constructed under Pier B of the international terminal, which could also have more gates added to it, Littlewood said.
In a separate announcement, the company said it was considering a seven-year bond offer for New Zealand retail investors and institutions.
It did not disclose the amount it hoped to raise, but said full details would be released before the offer opened next month.