17 Feb 2017

Auckland Airport first half profit flies higher

9:32 am on 17 February 2017

The country's biggest airport has reported a solid lift in its first half profit on the back of the tourism boom and record immigration.

Auckland Airport

The number of passengers passing through Auckland International Airport increased 12 percent last year, which contributed to the airport's revenue growth. Photo: 123RF

Auckland International Airport's net profit for the six months ended December was $141.8 million compared with $115.8m the year before.

The number of passengers passing through airport was up 12 percent to about 9.4m, and the number of flights also grew, which boosted its revenue by 11 percent to $311m.

"Revenue growth was, in part, due to ongoing strong growth in aeronautical and investment property revenues, while the increase in expenses was, in part due to new airline and route marketing, operational resources and asset management and maintenance," said chairman Sir Henry van der Heyden.

He said the airport plans to spend up to $400m this year in expanding its facilities, including expansion of the international terminal with new lounges and airbridges to handle larger planes, as well as parking and property developments, including a hotel.

The company said passenger numbers grew at Queenstown Airport, and two airports in Queensland, in which it has a near 25 percent stake, although it was still looking at future options for the Australian assets.

It raised its interim dividend to 10 cents a share from last year's 8.5c, and had also slightly increased its forecast full year net profit to between $235-243m.

Get the new RNZ app

for ad-free news and current affairs