Why is Auckland Airport (NZX: AIA) in news these days?

Highlights

• Auckland Airport launched its retail bonds on 25 October 2022.
• Book building for the bonds closed on 27 October.
• These bonds were quoted on the NZX Debt Market.

Auckland International Airport Limited (NZX: AIA) closed its books for retail bond offer on Thursday (27 October 2022). The offer was made in accordance with the Financial Market Conduct Act 2013 and quoted on the NZX Debt Market.

As per the update, margin price range for the offer is 0.95% per annum, and the bonds are likely to mature on 9 May 2028. The interest rate on the bonds will be 5.67% per annum paid twice a year—on 9 May and 9 November each year.

AIA had appointed BNZ and Westpac as the joint lead managers for the retail bond offer.

AIA’s FY23 guidance and outlook

Earlier, on 20 October 2022, AIA revised its guidance for FY23 due to a rebound in the travel sector with expected high load factors and continued forward seat capacity.

The guidance for underlying profit is now between NZ$100 million and NZ$130 million as against the earlier guidance provided in August of between NZ$50 million and NZ$100 million.

The company reported that it experienced good demand for travel within New Zealand and internally in the first quarter. The recovery is a result of border openings globally, it said.

The company is also expecting five airlines to be flying between Auckland and North America from early November, offering up to 60 flights per week to eight destinations.

For FY23, AIA expects international passenger numbers to touch 60-70% of pre-COVID-19 levels and domestic passenger numbers between 85% to 90%.

As per the company, the global aviation system will continue to be impacted by constraints like the shortage of staff and resourcing challenges regarding the fleet. However, it said there was overall confidence in returning to normal in the aviation industry.

The company also gave its capital expenditure guidance for FY23. It said that the guidance would remain at between NZ$600 million and NZ$700 million. The expenditure reflects a number of projects with regard to roading, airfields, and a number of international jet terminals.

Stock update

At the close of the week, the stock was trading up 1.76% at NZ$ 7.530, at the time of writing this article.