Auckland Airport lifts underlying profit as travel rebounds

The news: Auckland Airport, New Zealand’s biggest, has posted its first increase in underlying profit and dividend on the back of a rebound in domestic and international travel.

The numbers: Statutory net profit for the year to 30 June was down 77% to NZD43.2 million ($40 million), mainly due to lower valuations on investment property. However, underlying profit came in at NZD148.1 million - the first gain in three years. Total income doubled to NZD625.9 million. The company will pay a dividend of 4 NZ cents a share.

The context: The improved result follows a stronger than anticipated rebound in travel over the year. The ASX and NZX-listed Auckland Airport said international seat capacity had recovered to 90% of pre-pandemic levels by the end of the financial year, while domestic recovered to 89%. It forecast underlying profit for FY2024 to be between NZD260 million and NZD280 million.

What they said: "We still have some way to go to achieving full recovery, but it all amounts to a fantastic turnaround for an industry that was in dire straits two years ago - bringing relief and optimism to those of us who work in aviation," chief executive Carrie Hurihanganui said..