Aviation and Airlines (Commonwealth Union) _ In the upcoming six months, Auckland Airport is set to surpass pre-pandemic levels by 29%, reaching 15.9 million passengers in the twelve months ending June 30, 2023. Although this marks a significant recovery compared to the previous year, it remains 25% below the 21 million passengers in the financial year ending June 30, 2019. The airport’s international seat capacity has rebounded to 90% of pre-COVID levels, and domestic capacity is at 89%. With increased belly hold capacity, international freight capacity has reached 95% of pre-pandemic numbers.
Auckland Airport forecasts a 29% increase in flight capacity during the November 2023 to March 2024 holiday season compared to the same pre-pandemic period. The airport CEO, Carrie Hurihanganui, emphasizes the impact of additional capacity from China and highlights the steady progress in resuming and launching new international routes. In FY 23, 25 airlines flew to 40 destinations to and from Auckland Airport, a significant improvement from the pandemic’s worst times.
The airport has witnessed growth in North American routes, with Air New Zealand operating to seven cities, including its flagship destination of New York. Additionally, Qantas, Hawaiian Airlines, Air Canada, United Airlines, and American Airlines have resumed services, with Delta Air Lines soon to return. The China market is picking up, with 27 weekly flights operated by five airlines to four cities in mainland China, reaching 103% of pre-pandemic numbers by the end of the year.
Trans-Tasman connectivity has also recovered to 91% of FY2019 capacity, with Australians and Kiwis being the highest numbers of visitors to each other. Financially, FY23 saw a significant revenue jump of 108% to NZ$626 million, with an operating EBITDAFI of NZ$397 million. Despite a reported profit after tax decline of 77% to NZ$43.2 million, the airport attributes this to non-cash asset revaluations, reporting a net underlying profit of NZ$148 million.
For the full FY24 financial year, Auckland Airport expects international passenger numbers to be around 92% and domestic around 89% of pre-COVID levels, handling approximately 19.1 million passengers. The airport provides guidance of underlying profit after tax between NZ$260-$280 million for FY24 and capital expenditure between NZ$1-1.4 billion.
