Auckland Airport on track for forecast

Activity at Auckland International Airport (AIA) is slowing, but directors remain confident the company is on track to meet forecasts.

Speaking at the company's annual general meeting in Auckland today, chairman Wayne Boyd said the first three months of the financial year had shown an ease in the growth rate of recent years, but the trend remained positive.

"An after tax result in excess of $100 million is still expected for the 2006 year, barring any material adverse events or unforeseen circumstances," Mr Boyd said.

For the first three months of the year the company reported a net profit of $24.9 million, down from $26.5 million for the same period a year earlier.

Mr Boyd said the lower profit was the result of higher interest costs, related to the financing of a special 12 cents per share dividend.

Revenue for the quarter was $71.2 million, up 3.7 per cent, and earnings before interest, tax, depreciation, and amortisation (ebitda) was up 5.3 per cent to $56.3 million.

International passenger movements for the first three months of this financial year rose 2.8 per cent on the previous year to 1.59 million, while domestic passenger movements rose 5.6 per cent to 1.23 million.

The company is revamping the second level retail space at its international terminal. Part of the redeveloped space was opened last month and the rest of the project is due for completion in mid-December.

Airport chief executive Don Huse said the company is undertaking a comprehensive review of the airport's "masterplan", which should be made public before the end of the year.

"Current indications are that the airport will accommodate over 30 million passengers by the year 2050. The masterplan work certainly confirms the ability to provide the needed capacity, and more, on the present Auckland Airport site," he said.

Shares in Auckland Airport fell 2c to $1.90 in morning trade, having ranged between $1.76 and $2.43 over the past 12 months.

- NZPA