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Highlights
- AIA’s operations continue to be impacted by the COVID-19 pandemic amid travel curbs and lockdowns.
- The Group’s revenue was down by 50% to $281 million in FY21.
- AIA remains optimistic for future growth as international travel resumes.
Auckland International Airport Limited (NZX:AIA; ASX:AIA) provided details of its annual shareholder meeting on Thursday.
AIA’s operations continue to remain affected due to the COVID-19 pandemic. While the opening of safe travel corridors between the Cook Islands and Australia resulted in some meaningful action in AIA’s international business, recent outbreaks in NZ and across Tasman led to an abrupt ending of these developments.
Image source: © 2021 Kalkine Media, Data source- EODHD/Others
Some of the highlights of the Group’s financials for the year ended 30 June 2021 included the following:
- Revenue was down 50% to $281 million with EBITDA falling 34% to $172 million.
- Underlying profit fell by 122% to a loss of $42 million while underlying earnings per share fell to a loss of 2.8cps
- 560K travellers arrived or departed through the international terminal, down from roughly 8 million in FY20.
- The annual rent roll increased 13% to $117 million, and the portfolio value rose 29% to $2.6 billion.
An area of key focus in FY21 was to recapture the aviation and tourism sector, including supporting the Government in safe border reopening.
AIA played a crucial role in gathering the aviation community to help the Government in creating a risk-based quarantine-free travel system to support airlinks between New Zealand and other low-risk countries. However, these plans have been put on hold with AIA continuing to plan for future and reopening of New Zealand’s border.
On 21 October, at the time of writing, AIA was trading at $7.81, down 0.51%.
Road ahead
AIA has laid out some future plans for FY22 while stabilising its business.
In August, AIA announced plans to bolster its retail business by constructing a fashion outlet in a fantastic location on the north-eastern edge of the precinct.
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AIA expects demand for international travel will revive in 2022 as the vaccination rollout continues over the rest of the year.
The Group also plans to restart its projects on delivering an integrated airport terminal, an extended airfield, and an enhanced transport system that would serve Auckland and New Zealand well into the future.
AIA remains positive about the return to growth as global travel fully recovers.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)