Auckland Airport Chief Executive, Adrian Littlewood speaks before the shareholders meeting at the Vodafone events Centre on Thursday. 22 October 2015. Photo / Nick Reed
Auckland Airport Chief Executive, Adrian Littlewood speaks before the shareholders meeting at the Vodafone events Centre on Thursday. 22 October 2015. Photo / Nick Reed
Chief says rise in capex follows strong growth.
Auckland Airport is enjoying strong tailwinds from the surge in tourism and is about to launch into significant capital spending.
Chief executive Adrian Littlewood said all but one of the top-20 international markets was up last year and the four core arrivals markets - New Zealand, Australia, the United States and China - all delivered excellent growth.
Arrivals of New Zealanders were up 4.6 per cent to 1.87 million, Australia up 2.3 per cent to 776,000, United States up 10.6 per cent to 186,257 and China up 28.8 per cent to 292,000.
More higher-value independent travellers had been arriving in the last financial year.
"Indeed, these independent travellers comprised almost 50 per cent of our Chinese market, up from only 28 per cent four years ago - a good sign for our country."
Littlewood told shareholders at the company's annual meeting that strong growth was expected in the current year due to new services.
"For Auckland, the past year has probably been one of the most significant in terms of the range of new carriers, routes and services launched or announced."
The company reaffirmed guidance of an underlying net profit after tax of between $183 million and $191 million in the 2015-16 financial year, up from $176.4 million the previous year.
He said that as a direct result of the strong growth across the business - but in particular from tourism and property - the company was increasing its capital expenditure guidance for the 2016 financial year to be between $230 million and $260 million.
For Auckland, the past year has probably been one of the most significant in terms of the range of new carriers, routes and services launched or announced.
"[This] is an increase of between 12 per cent and 27 per cent on the top end of our initial capex guidance which we announced earlier this year."
Watch an interview with Adrian Littlewood here
This updated figure included about $135 million of aeronautical expenditure, focused on upgrading and expanding terminals and facilities for aircraft.
"This will deliver real benefits and make us an even more appealing hub for global aviation. I am confident that our investment programme means we are catering for both our short-term capacity needs, and for ... the next 30 years and beyond."
In March last year Littlewood announced a 30-year plan to build the "airport of the future".
Profit share from Queenstown Airport was up 25.8 per cent to $2.1 million on strong passenger growth, although the profit share from North Queensland Airports was down 9.8 per cent to $7.2 million, reflecting a softening Australian economy.
Auckland International Airport shares closed up 0.4 per cent at $5.25 yesterday.
Auckland Airport Chairman Sir Henry van der Heyden speaks before the shareholders meeting at the Vodafone events Centre on Thursday. Photo / Nick Reed
Bonus for staff, payrise for boss
Auckland Airport has rewarded its workers with a $1200 bonus and given its chief executive a pay rise of nearly 30 per cent.
Chief executive Adrian Littlewood has had his pay boosted to more than $2.2 million, Littlewood's remuneration last year was between $1.690,000 and $1.7 million, according to figures in annual reports.
The company's chairman Sir Henry van der Heyden said executives were paid according to whether they had met performance targets.
"He's been there for three years and because of where the performance has gone he's hit the benchmarks. He's an experienced CEO and he's delivered," van der Heyden said.
The number of executives paid more than seven figures has been cut from five to four although two of those are categorised as former employees.
In August chief financial officer Simon Robertson and general manager of corporate affairs and company secretary Charles Spillane left the company following a review of the company's direction and strategy, including executive remuneration.
Van der Heyden told shareholders at the company's annual meeting that the review included overhauling its long-term executive incentive scheme which includes making available up to $1 million in interest-free loans for participants to buy shares.
