Passenger lift for capital's airport

Wellington International Airport finished the three months to December 31 with a 16 per cent rise in international passenger numbers.

Domestic passenger growth was more modest, up 3 per cent for the period.

The company's majority owner, Infratil, says the smaller rise in domestic travellers was positive, as the airport had to cope with the effect of the Ansett New Zealand pilots' strike and a weak economy.

Last month, Wellington International Airport Ltd's chairman, Australian Phil Walker, admitted the passenger side of the business was not boosting profits.

"Overall, earnings are very strong - and I don't think we've had the rub of the green in terms of passenger numbers yet," he said.

Airport revenue was up largely because of the company's property operations, such as income from shops using the airport, and income from advertising billboards.

The December quarter figures, however, appear to indicate a recovery in passenger numbers has started, boosted by the weak New Zealand dollar for international visitors, and improved business confidence.

Making the airport's business sweeter is a 10 per cent trim in operating costs in the past year.

The airport's earnings before interest and tax, and excluding depreciation and write-offs, was 30 per cent ahead in the year to last December, compared with the previous year.

The airport is owned two-thirds by Infratil, the remainder held by Wellington City Council.

The upbeat outlook for the airport company is boosting Infratil's share price, which has climbed 23 per cent to $1.37 this week, 4c short of its year high.

Analysts are picking the stock could hit $1.70 by the end of this year.

Infratil's purchase of a stake in Glasgow's Prestwick Airport in January for $110 million is looking solid despite tourism there being hit by the foot-and-mouth outbreak.

Infratil says Prestwick should achieved enhanced profitability even in the event of a sustained economic slowdown.

- NZPA