Passenger growth drives profits at Auckland

Emily Pacey

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Increased passenger traffic offset slow retail growth at Auckland International in the first half of 2005

Auckland International airport (AIA) welcomed 11.26m people in the first six months of the year, 4.6% more than in the same period in 2004. The increased traffic helped New Zealand's biggest airport to strong profit growth despite only achieving a small increase in retail income.

The group reported that redevelopment work and increased security measures hindered sales from its retail operations, which rose 3% to NZ$84.7m ($58.8m).

The raft of security-led developments, completed last winter, included the enlargement of the immigration and emigration areas, the addition of 12 new check-in counters and the construction of a second level for the international pier.

Profits rose to NZ$105.6m ($73.3m), up from NZ$94.3m ($65.5m) last year and just above its NZ$105m ($73m) forecast issued in February. AIA chief executive Don Huse said: "The continued growth in earnings once again highlights the strong stable business position and long-term prospects at Auckland."

Low airfares offered by Air New Zealand and Qantas on the trans-Tasman route drove traffic growth, as did the expansion of services by Emirates and new services started by Virgin low-cost airline Virgin Blue.