Why Auckland Airport’s (ASX:AIA) February footfall is down

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Summary

  • Auckland Airport’s total passenger volumes decreased by a massive 71.0% in February 2021 over the last year.
  • Domestic services in February 2021 were also drastically impacted by stringent travel restrictions.
  • Auckland Airport is down by 2.5% while its Australian peer Sydney Airport is down by 5.3% during the same period.

Auckland International Airport Limited’s (ASX:AIA) & (NZX:AIA) total passenger volumes decreased by a massive 71.0% in February 2021 compared to the last year. International passengers saw a downtick by a 96.9%, domestic passengers were down by 41.4%, and transit passengers were 96.4% down.

Image Source: ID 20626457 © photo360 | Megapixl.com

The massive plunge in the total number of passengers for February 2021 reflects the concerning impact of the travel restrictions imposed by the New Zealand Government in response to the COVID-19 pandemic. The closure of New Zealand borders from 20 March 2020 for all except its citizens and permanent residents has led to a vigorous impact on travel industry.

The Australian Government also took stringent measures to curb the spread of COVID-19. It suspended the quarantine-free travel to Australia from New Zealand on 15 February 2021 for six days amid Auckland entering alert Level 3 lockdown and the rest of New Zealand entering alert Level 2 for three days. Three Australian states (Victoria, Queensland, and New South Wales) stopped all “green flights” coming from New Zealand on 24 February 2021 following its move to restrict travel bubbles with New Zealand.

Domestic services in February 2021 were also drastically impacted by the stringent travel restrictions when Auckland re-entered alert Level 3 on Sunday, 14 February 2021, for a period of three days and again on Sunday, 28 February 2021, for six days.

March 2021 Monthly traffic update

The total passenger volumes for the Auckland Airport fell 53.8% in March 2021 over the last year. International passengers were down 95.0%, domestic passengers were down by 11.1%, and transit passengers were 92.9% down.

Image Source: ID 176107234 © Mrdoubleo | Megapixl.com

The decline in total passengers for March 2021 reflects severe consequences of the travel restrictions imposed by the New Zealand government. New Zealand shut down its borders and stopped all incoming traffic from 20 March 2020 for all but its citizens and permanent residents.

The Australian Government resumed one-way quarantine-free travel from New Zealand to Australia from 11 March 2021. This allowed travellers from New Zealand who have been there for 14 days to travel by air to Australia without having the need to be quarantined and also without applying for a travel exemption.

Domestic services were also impacted in March 2021 by further travel restrictions when Auckland re-entered alert Level 3 on 28 February 2021 for six days until 7 March 2021.

Read More: Auckland Airport Cautioned of More Job Cuts as Earnings Take a Hit

Stock Performance

Auckland International Airport’s share price is down by 2.5% YTD but still up by 25% in the last one year. Same story goes for the company’s peers; Air New Zealand Limited (ASX:AIZ) & (NSX:AIR) is up by 33% on one-year basis but down 1.94% on YTD basis.

It’s Australian peers such as Sydney Airport Holdings (ASX:SYD) is down by 5.3% on YTD basis while Qantas Airways Limited (ASX:QAN) and Webjet Limited (ASX:WEB) are up 7.2% and 4.3%, respectively.

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