This Content Is Only For Subscribers
Auckland Airport has reported a year of significant growth and strategic development, in their recent FY24 report with passenger numbers surging and major infrastructure projects progressing despite a challenging economic times.
In the report, for the financial year ending June 30, 2024, the airport recorded a total of 18.5 million passengers, a 17% increase from the previous year. This was driven by a 5% rise in domestic travelers, reaching 8.5 million, and a robust 29% growth in international passengers, totaling 10.1 million.
Auckland Airport chair Patrick Strange highlighted the impact of the recovery in international airline capacity. “The FY24 financial year has been marked by the strong return of international airline capacity, including several new carriers and routes, with seat availability to international destinations at 91% of 2019 levels.” he says.
He also emphasised the benefits of increased connectivity, particularly on North American routes, where a 48% increase in available seats led to a 40% growth in visitors from North America. “This lift in capacity has not only benefited Kiwis but has also been an important economic driver for New Zealand’s tourism industry.” he says
China also proved to be a strong market for Auckland Airport, with the return of Sichuan Airlines in April boosting seat capacity to 2% above 2019 levels. Patrick says “Six airlines now connect Auckland Airport to seven destinations in China, and Q4 alone saw a 13% increase in capacity.”
The airport’s financial performance reflected this recovery, with revenue up 43% to $895.5 million and operating EBITDAFI rising 55% to $614.0 million. However, reported profit after tax took a significant hit, dropping 87% to $5.5 million, a decline attributed to the broader economic environment and strategic investments.
With the report, Auckland Airport chief executive Carrie Hurihanganui highlighted the importance of prudent financial management in this context. “Auckland Airport relies on customers coming and going through our doors, so in this environment, where people are being more careful with household spending, we are taking a prudent and careful approach to spending.” she says.
This careful approach extends to the airport’s ambitious infrastructure programme, which includes the ongoing terminal integration project. Carrie shared progress updates in the report and says “We are confident that we are delivering the much-needed upgrade and renewal of an airport that serves as the gateway for more than 18 million travellers and $26 billion in annual trade.”
Key milestones in the infrastructure programme include the near-completion of ‘the Stitch’—the connection point between the international terminal and the new domestic jet terminal—and the opening of the first stage of the Transport Hub. Carrie also highlighted the expansion of the airfield and upgrades to the road network as crucial projects that are well underway.
Looking ahead, Carrie addressed the challenges of long-term capacity recovery. “With a global backlog of replacement aircraft orders, airlines are prioritizing high-yield routes and holding back on a full return to long-haul destinations. We anticipate a longer timeframe for achieving a full capacity recovery to pre-2019 levels.”
Auckland Airport is also pushing forward with significant commercial developments, and as part of its commitment to sustainability, Auckland Airport has achieved a 25% reduction in direct carbon emissions compared to its 2019 baseline. The airport’s infrastructure upgrades, including solar arrays on the rooftops of the new Transport Hub and Mānawa Bay, are designed to support both current needs and future ambitions for decarbonisation.
