Auckland Airport (NZX: AIA) revises its FY23 profit guidance - Kalkine Media

Follow us on Google News:
 Auckland Airport (NZX: AIA) revises its FY23 profit guidance
Image source: © Snicol24 | Megapixl.com

Highlights

  • Auckland Airport has revised its FY23 outlook.
  • The company's underlying profit after tax is estimated to be between NZ$100M-NZ$130M.
  • The profit upgrade is due to a surge in travel demand after the reopening of the borders.

Auckland International Airport (NZX:AIA) on Thursday (20 October 2022) revised its FY23 guidance and claimed that high load factors and continued strength in the seating capacity will lead to the recovery in Auckland Airport’s profits.

Auckland International Airport updated its guidance of underlying profit after tax to be between NZ$100 million and NZ$130 million. This is an upgrade from the guidance of NZ$50 million and NZ$100 million provided in August. Underlying profit excludes property revaluations.

As per the update, AIA is benefiting from the increase in travel demand after the reopening of the borders this year. 

                                                    Source: © 2022 Kalkine Media®

At the annual meeting today (20 October 2022), the company’s chairman, Patrick Strange, said that activity was happening again at the airport with planes and travelers returning. He said the company was making all efforts to attract international airlines, but the work was still in progress.

Carrie Hurihanganui, CEO, AIA, said the improved profit outlook was a result of the firm's dpmestic as well as international performance.

She said that in the first quarter, the company had witnessed a demand for travel, particularly in the South American, South Pacific, and Trans-Tasman routes. In addition, Emirates will be starting daily non-stop Auckland-Dubai flights from 1 December.

Even though globally, the aviation industry continues to be impacted by the shortage of crew and other resourcing challenges in the Chinese market.

FY23 expectations

  • According to AIA, for FY23, international passenger numbers are expected to be between 60% and 70 % of the pre-COVID-19 levels and domestic passengers are expected to be between 85% and 90%.
  • The airport’s capital expenditure guidance for the 2023 FY remains between NZ$600 million and NZ$700 million.
  • The capital investment plan is considered within the airlines’ consultation on aeronautical prices under Price Setting Event 4 
  • As per the company, the adjusted outlook is in line with the International Air Travel Associations's (IATA) view that the global industry will recover to pre-pandemic levels by the end of CY24.

Stock price

On 20 October, the AIA stock was trading up 1.87%, at NZ$7.345, at the time of writing this article.

 

Disclaimer

The content on this website, including, but not limited to, any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (“Content”) is a service provided by Kalkine Media New Zealand Limited (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide financial advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests users seek financial advice from a financial advice provider, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all liability to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without any express or implied warranties of any kind. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit a source wherever it is indicated or is found to be necessary or desirable.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK