Auckland Airport posts 12% rise in underlying profit
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The news: Auckland International Airport reported a 12% increase in full-year underlying profit after tax to NZD310.4 million ($281 million), as the number of passengers travelling through the airport edged up 1.1% year over year.
The numbers: The result was up from NZD276.6 million in FY24 and topped market estimates of NZD306.77 million, according to Visible Alpha data. It met guidance of NZD280 million and NZD320 million.
Revenue was up 12% year on year, from NZD895.5 million to NZD1 billion. Analysts had expected revenue of NZD984.89 million. Total passenger movements increased 1.1% to 18.7 million.
The company declared a full-year dividend of 13.25 cents per share, flat with last year's payout and above average forecasts of 13 cents per share.
The context: Auckland Airport chair Julia Hoare said international airline seat capacity stabilised at 92% of 2019 levels, with the ongoing soft recovery in travel volumes delivering a modest uplift in overall passenger numbers.
She said the future outlook "remains positive", boosted by several airline partners announcing new routes and expanded capacity for the coming summer.
Domestic capacity remained steady during the year, Hoare noted, with numbers affected by Air New Zealand's ongoing engine issues, fleet constraints, and the wider economic environment.
Auckland Airport said ongoing airline seat capacity constraints are expected to continue in the short term.
What they said: "...the impacts of the global geopolitical environment on travel demand, the softer New Zealand economy, and the business needing to adjust to operating in a live and an ever-increasing construction environment, are creating additional uncertainty around the outlook," the company said.
The source: ASX
