Auckland Airport reports 1HFY2013 performance ahead of expectations, revises forecast upward

New Zealand's Auckland International Airport reported (21-Feb-2013) its performance was slightly ahead of expectations in 1HFY2013, particularly regarding growth in domestic passenger traffic. The airport attributed domestic traffic growth to greater competition and increased capacity by Jetstar and Air New Zealand. The airport said demand for both domestic and international travel proved resilient to global and local fluctuations. Transit passenger numbers declined due to suspension of services by Qantas to Los Angeles and Aerolineas Argentinas to Buenos Aires. The airport reported the China inbound market grew 26.8% in the six months to Dec-2012, surpassing the US and UK to become its third-largest market. Auckland Airport is currently reviewing its master plan to refine terminal and runway infrastructure development. The airport said the passenger experience at its domestic terminal is deteriorating and needs to be addressed to accommodate increased demand for travel. Short term remediation to improve passenger traffic flow commenced in Jan-2013 but a final resolution will require significant capital expenditure and sufficient confidence in an appropriate return on investment. The airport revised its FY2013 net profit forecast of NZD143-150 million (USD119-125 million) to NZD145-153 million (USD121-128 million). [more - original PR]