Tourism growth boosts shares

By GEORGINA BOND

Auckland International Airport shares surged yesterday after the company said strong growth in tourism would continue to underpin its earnings.

Chairman Wayne Boyd told shareholders at the company's annual meeting in Auckland a net profit for the year to June 2005 of $105 million was "achievable" - up from $94.3 million this year.

The company's shares closed up 12c at $7.60 last night, near their year high of $7.64.

Net profit for the four months to October rose from $28.2 million to $34.7 million. Sales rose from $82.7 million to $91.4 million.

Passenger numbers were up 9.4 per cent, and Boyd said on a 12-month rolling average the airport had broken the 11 million passenger mark - a new record.

Some shareholders questioned the proposed increase in directors' fees from $337,500 to $560,000, but 99.45 per cent of votes were cast in favour of the increase.

Aucklander Mabel Pollock also attacked the board for opposing the development of a new airport at Whenuapai in west Auckland.

"We should not be suppressing and being derogatory about Whenuapai," she said.

Boyd said the increase in directors' fees made up for the expiry of retirement allowances and ensured the company's ability to attract suitably qualified directors.

"Fees have definitely moved in the sector and I think, if anything, we have been behind," he said.

He reiterated the company's plans to develop Auckland International Airport, including building a second runway, so it would meet air travel needs until at least 2050.

"We are not opposed to an airport at Whenuapai provided it's not a sweetheart deal," he said.

"There are wider national and regional issues driving the question - should there be a second airport? The issue is not airports, it's public transport and roading."

Meanwhile, Boyd said a busy summer lay ahead. Extra flights were scheduled to Adelaide, San Francisco and Asia.

International tourist arrivals were expected to grow 5.8 per cent a year until 2010, which had given the airport confidence to embark on its three-year $375 million investment programme.

Extra check-in counters, expanded arrival and departure facilities, 400 new car parks and extra hard-stand spaces for aircraft were expected to be ready by Christmas.

Next year, security upgrades and extensions to international baggage-handling systems allowing for the screening of all luggage would be completed.

Boyd said the airport was planning ahead to 2050 when it could handle up to 30 million passengers a year.