Auckland Airport Breaks 10 Million Passenger Mark

Monday, 23 February 2004

Auckland Airport Breaks 10 Million Passenger Mark
Press Release: Auckland International Airport  


Auckland International Airport Limited (AIAL) today
reported a surplus after tax of $45.2 million for the
six months ended 31 December 2003, up 13.8 per cent.
New Zealand's gateway airport also announced that it
had, for the first time, processed more than 10
million passengers in a 12-month period ending January
2004.

AIAL chairman, Wayne Boyd, said that the result
underlined the company's strength and reflected the
positive growth in passenger numbers, "we are not only
seeing a rise in international visitors, but New
Zealanders are travelling more as well." Total
passenger movements for the six-month period increased
12.2 per cent to 5,292,601.

"Competitive fare structures and strong marketing
initiatives by airlines have stimulated overall
demand, particularly on trans-Tasman services," Boyd
said.

Total international passenger movements increased 9.9
per cent to 3,004,760. Domestic passenger activity was
also buoyant, increasing 15.4 per cent over the
previous corresponding period, for a total of
2,287,841.

"The summer season is reflected in this half-year,
with the record for international passengers handled
in a week being broken on four occasions in November
and December," Boyd commented. "The busiest week of
the year has traditionally been in January, and this
year a record 140,950 passengers were processed in the
week ending 11 January 2004."

Reflecting the growth in scheduled services,
international aircraft movements increased to 17,948,
an 18.4 per cent rise. Domestic aircraft movements
increased 2.6 per cent to 58,080.

"Through strong co-operation between airlines,
government agencies and the airport company, the
airport was able to accommodate the recent growth in
passenger numbers within existing infrastructure. The
last major building development was in 1997, and the
recent growth in activity requires expansion of
facilities," said Boyd.


A number of construction projects are taking place
over the next three years. Expansion of the check-in
area to accommodate 12 new check-in counters is
scheduled to be complete by late- October 2004.

The reconfiguration of the existing international
terminal pier to separate arriving and departing
passengers is scheduled to begin April 2004. There
will also be an expansion to baggage handling
facilities to allow for stowed luggage screening.
These are in compliance with security requirements.

Construction of four Boeing 747-sized aircraft stands,
one of which will also be able to service the new
generation A380, is scheduled for completion by
October 2004. These stands will initially be serviced
by bus operations from the existing international
terminal, with a new walkway link including
travelators expected to be operational by mid-2005.

A second international pier, initially to provide
gates to the four hard stands but incrementally built
to accommodate a total of 12 gates, is planned. The
scope and timing of this development is yet to be
determined.

April and May 2004 will also see the rehabilitation of
a section of the runway, during which time the
stand-by runway will be in use. The 38-day project
involves replacing concrete slabs in a mid-section of
the runway. The new, thicker, slabs will have a
lifespan of at least 40 years.

Boyd said, "The cost of these projects, excluding the
second pier development, is currently estimated at
around $150 million over the next two to three years.
They will be funded from retained operating cash flows
and increased borrowings, and are not expected to
impact on the directors' practice of distributing
dividends equating to approximately 80 per cent of the
surplus after tax.

"The increased activity level and strong financial
performance has provided the directors with the
confidence to proceed with investment in increased
airport capacity. The company remains committed to
ensuring service standards at the airport are
maintained at levels that meet the expectations of
passengers, airlines and other airport stakeholders."

Shareholders will receive an interim dividend of 10.5
cents per share, to be paid in March. This amounts to
$32 million, an increase of 10.8 per cent on last
year's interim.

"The strong first half result reflected record
passenger and aircraft activity. This trend has
continued in January and February 2004. Provided these
levels can be sustained throughout the second half of
the year, the company could well look to reporting a
surplus after tax result in excess of $90.0 million."
- ends -

Fast Facts

Six months to 31 Dec 03 Six months to 31 Dec 02
Revenue $129.1m $114.4m Surplus after Tax $45.2m
$39.7m Earnings per share 14.9 cents 13.1 cents
Aircraft movements 76,028 71,768 International 17,948
15,154 Domestic 58,080 56,614 Passenger movements
5,292,601 4,715,836 International 3,004,760 2,733,257
Domestic 2,287,841 1,982,579 

Highlights

. Record passenger numbers, with total movements up
12.2 per cent to 5,292,601.

. International passenger movements increased 9.9 per
cent to 3,004,760 – domestic passenger movements up
15.4 per cent to 2,287,841.

. Significant increase in scheduled international
services over the New Zealand summer period.

. Revenue increased 12.8 per cent to $129.1 million,
while the surplus after tax was up 13.8 per cent to
$45.2 million.

. Interim dividend of 10.5 cents per share, amounting
to $32.0 million, or 70.8 per cent of the surplus.

. In the absence of any adverse events, a surplus
after tax result in excess of $90.0 million for the
full year is projected.

. Increased activity levels and security issues will
necessitate further expansion of airport capacity:

- check-in counters;

- additional international apron areas and aircraft
stands;

- separation of arriving and departing international
passengers;

- expanded baggage facilities to meet additional
screening requirements;

- eventual development of a second international pier.

. Financing of expansion projects not expected to
impact on the practice of distributing dividends
equating to approximately 80.0 per cent of surplus.

. Expansion projects to be funded by retained earnings
and increased borrowings.


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