Auckland International Airport, the country's main gateway, boosted first-half profit 12 per cent as new routes and increased capacity stoked passenger activity, and the hub is now expecting bigger annual earnings as a result.
Net profit rose to $85.9 million, or 6.49 cents per share, in the six months ended Dec. 31 from $76.9 million, or 5.82 cents, a year earlier, the Auckland-based company said in a statement. The earnings were in line with a forecast by First NZ Capital.
Underlying earnings, which strip out one-off charges and revaluation changes, climbed 14 per cent to $86.7 million. Auckland Airport raised its guidance for full-year earnings to between $166 million and $172 million, from a previous range of between $160 million and $170 million.
"The company is pleased to record an interim result which has exceeded expectations and builds on our recent strong performance," chairman Sir Henry van der Heyden said. "We have renewed our focus on becoming a southern hub airport for the Pacific Rim, and our focus on growing travel markets has resulted in new routes and additional seat capacity."
Last week the airport's shareholders approved a $454 million capital return via a share cancellation. The company undertook the return after several strong years left it with an inefficient mix of debt and equity.