Auckland Airport says on path for record profit

2.00pm

Auckland International Airport said at its annual shareholder meeting today it was on path for a record profit.

It said international passenger movements in the four months to October 31 were 4.6 per cent ahead of the previous year, while domestic passenger movements were 5.3 per cent ahead.

Revenue for the four months rose 13.1 per cent to $74 million and the surplus after tax rose 20.2 per cent to $25.25 million ahead of the same time last year.

The year-end result would be affected by an increased interest charge relating to $214 million of borrowing associated with the capital repayment, but the board said it was confident of a record profit in excess of last year's $71.5 million.

"Obviously our outlook for the remainder of the year needs to be qualified in respect of any adverse international events, outside the control of the company, which could impact on our performance," chairman Wayne Boyd said.

The company refused to comment on fallout from a possible tie-up between Qantas and Air New Zealand, the two main operators at AIA.

Despite fallout from September 11, revenue in the 2001/02 year rose 6.2 per cent to more than $200 million.

Mr Boyd told shareholders the company strongly opposed the Commerce Commission's recommendation of price controls on AIA's airfield services.

He said the commission's report contained a number of arithmetic errors and its adoption of historical valuation was flawed.

Auckland City Council is currently offering its 25.6 per cent holding for sale.

The dual track process involves inviting offers from prospective trade buyers for the holding as well as an offering to institutional investors internationally.

Any sale is subject to final approval of the price by the Auckland City Council which has reserved its right to decline or approve the sale.

AIA shares were up 6c to 540 shortly after the announcement.

- NZPA