Auckland Airport profits fall 63pc to $41m

Profits at Auckland International Airport are down 63pc, but revenues are up 5.2pc. Photo / Dean Purcell

Auckland International Airport reported a 63.1 per cent fall in full year net profit to $41.7 million, even as most revenue lines showed growth.

Adjusted for the revaluation of investment property, and restructuring costs, underlying net profit for the year to the end of June rose 2.1 per cent from the previous year to $105.9m, the airport said today.

The company's investment property portfolio decreased in value by $64.6m during the 2009 financial year.

Chief executive Simon Moutter said the company's growth strategy unveiled in March was now well under way and influencing business performance.

Revenue growth of 5.2 per cent to $369.2m, and reduced capital spending of $87.5m reflected efforts to focus on key markets, work harder with customers, drive greater yield and tightly manage ongoing operational and infrastructure costs.

Total passenger movements fell 1.4 per cent to 13m, with international including transits and transfers down 1.4 per cent to 7.36m and domestic down 1.5 per cent to 5.65m.

The decline came after years of seemingly unrelenting growth, and during a time of "extraordinary" global uncertainty with the airline sector under severe pressure from changing industry dynamics, the company said.

Total aircraft movements were down 1.8 per cent over 2008 to 156,781, with international up 4.4 per cent, but domestic down 3.8 per cent, Auckland Airport said.

A final dividend of 4.45c per share is to be paid, compared with 2.45cps last year. The total dividend for the year is 8.2cps.

For the 2010 financial year, the company said it expected net profit after tax, excluding any fair value changes and other one-off items, to be in the range of $93m to $100m.

The airport said forecasting was difficult when global travel demand conditions were unstable and passenger volume growth remained uncertain.

But it was looking forward hopefully, saying the current downturn would not last forever, and if previous experience was an indication, the industry should in time bounce back to robust growth.

"We are well leveraged to reap the benefits from the upturn because we have quality infrastructure and capacity in place and can cater for a significant increase in volumes with a relatively low level of associated costs," the airport said.

Auckland Airport's operating ebitda (earnings before interest, tax, depreciation and amortisation) for the latest year rose 1.6 per cent to $280.4m.

The reduced capital spending programme of $87.5m had been invested in a range of airfield, terminal, retail and property projects.

Those included completion of Pier B of the international terminal, the opening of new off-terminal parking, ongoing work on the northern runway, and a start to first floor redevelopment at the international terminal.

An increased focus on air service development was reflected in new air services from Emirates, Pacific Blue and Jetstar during the year, the airport said.

Greater investment into tourism partnerships helped drive volume and strengthen airline relationships.

- NZPA