KEY POINTS:
Auckland International Airport has cut its full-year earnings forecast due to climbing operating costs.
The company said it expected earnings before interest, tax, depreciation and amortisation (ebitda) to increase 6 per cent in the year to June 2008, back from its previous growth estimate of 7 per cent.
AIA chairman John Maasland said the after-tax surplus for the four months to October 31 was $31.9 million, down 1.5 per cent from the same period last year.
The reduction reflected the ongoing depreciation and interest costs incurred by the company in connection with the current investment programme.
The company's shares closed 4 per cent, or 12c, lower at $2.86 after the gloomy profit forecast.
Earnings were $243 million in the year ended June 30.
In the four months ended October 31, revenue rose 7 per cent to $111 million.
Full-year earnings are being affected by additional costs, particularly in personnel, rates, legal and consultancy expenses.
Maasland said the company had incurred significant one-off expenses of approximately $4.5 million directly in connection with review and investigation of takeover offers.
Maasland said the outlook remained positive, with a a resurgence of passenger growth volumes. Passenger numbers were beginning to return to the company's long-term average of about 5 per cent growth a year.
In the four months to October 31 international passenger movements were up 4 per cent to 2.1 million and domestic movements increased by 6.5 per cent to 1.8 million.
A 1.9 per cent fall in total aircraft movements in the period was primarily due to larger planes on domestic routes and the end of some services.
Maasland said plans by airlines to expand their fleets and New Zealand's appeal as a destination would help underpin growth.
