Auckland airport reports 3.8 percent rise in profit

AUCKLAND, New Zealand – Auckland International Airport (AIA) has reported a 3.8 percent rise in underlying profit after tax to $NZ176.4 million ($192.3 million), due in part to a 5 percent rise in tra

AUCKLAND, New Zealand – Auckland International Airport (AIA) has reported a 3.8 percent rise in underlying profit after tax to $NZ176.4 million ($192.3 million), due in part to a 5 percent rise in traffic through New Zealand’s largest airport as international tourist arrivals continue to grow.

The airport operator’s revenue rose 6.9 percent to $NZ508.5 million, while earnings before interest, tax, depreciation, amortisation, fair value adjustments and investments in associations rose 7 percent to $NZ380 million, in line with analyst expectations of $NZ379.5 million. On a bottom-line report, AIA had a 3.5 percent rise in full-year profit after tax to $NZ223.5 million.

AIA declared a final dividend per share of NZ7.3c fully imputed, bringing its full-year payout to NZ14.6c per share.

The company said its revenue growth was achieved through strong aeronautical performance and property rentals. It also reported a stronger earnings contribution from Queenstown Airport.

“Auckland Airport will continue to deliver for its investors in the 2016 financial year,” said chairman Henry van der Heyden. “We expect underlying net profit after tax (excluding any fair value changes and other one-off items) to be between $NZ183 million and $NZ191 million.”

The airport said Jetstar’s plan to begin regional flying in New Zealand would be positive for the airport, as well as Air New Zealand’s planned flights from Auckland to Buenos Aires and Houston. Air China and China Eastern are also increasing the number of connections between New Zealand and China, which is important for the nation’s tourism industry.

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Linda Hohnholz

Editor in chief for eTurboNews based in the eTN HQ.

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