Profit reassurance from Auckland Airport

By Phil Boeyen, ShareChat Business News Editor

Monday 23rd April 2001

Auckland International Airport has moved to allay investors' concerns at the demise of Qantas New Zealand.

The airline went into receivership over the weekend, reportedly owing considerable amounts to airports and fuel suppliers.

However AIA says the receivership of the country's second largest domestic operator will not weigh down its previous profit projections.

In the interim report the airport recorded a 15% increase in surplus after-tax to $28.5 million for the six months ended December, and said the second half of the year should yield a similar result.

It is now picking that profit will not only be at least equal, but could improve.

"Given the continued strong growth in international traffic, the strong retail activity and ongoing property development, the company's performance in the second half of the year to 30/06/2001 will still at least match and potentially better the first half," the company says in a statement.

AIA recently announced it was extending part of its international terminal to provide more space for passengers and to increase the retail selling area. Retail revenue from airport stores is the company's biggest income stream.

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