Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Wellington Airport lifts earnings by 44%

Wellington Airport keeps in regulator’s range while lifting earnings 44%

By Suze Metherell

May 21 (BusinessDesk) – Wellington International Airport, which is two thirds owned by Infratil, boosted full-year profit by 44 percent while keeping returns within the range prescribed by regulations.

Net profit for the year ending March 31 was $23.5 million, up from $16.2 million a year earlier, the airport said in a statement. Sales rose 4.4 percent to $110.9 million, while its return on aeronautical assets was 6.2 percent, below the Commerce Commission’s 8 percent limit.

Airports are required to disclose price setting methodology, financial statements and business plans to the regulator, as well as keeping returns under 8 percent to limit excessive profits. The Commerce Commission and Wellington Airport have been at odds about how this return is calculated.

The airport is continuing talks with airlines over changes to its runway and terminal services. Air New Zealand has accused the airport of price gouging, after the national carrier last year flagged a $200 million lift in landing fees over the coming five years.

Earnings from its landing and terminal charges rose 5.3 percent to $65.9 million in the year as it passed the 750,000 international passenger mark for the first time. Domestic passenger growth rose 1 percent in the year, the airport said, without being more specific.

Property rent and lease income gained 4 percent to $11.3 million. Its retail and trading activities unit lifted 2.8 percent to $33.7 million.

Over the next five years the airport is planning to spend $250 million on a terminal expansion, hotel, carpark as well as moving the fire station and a noise mitigation programme for neighbouring residents.

Wellington Airport’s NZX-listed bonds, which pay annual interest of 6.25 percent and mature in May 2021, were unchanged at $101.876 per $100 face amount at a yield of 5.95 percent, according to NZX data. The airport listed the bonds in a $75 million offer last October, after having earlier raised $50 million in bonds from institutional investors in June.

Shares in Infratil were unchanged at $2.40.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Trade & Retail: Chinese Disaster Spells Quiet Season For NZ Fireworks Sales

In August, two massive explosions at a warehouse at the port in the port of Tianjin, Northern China, killing more than a hundred people and devastating large areas of the city. In the wake of the disaster, Chinese authorities rushed to regulate the distribution of all dangerous goods... More>>



Oceans: NOAA Declares Third Ever Global Coral Bleaching Event

As record ocean temperatures cause widespread coral bleaching across Hawaii, NOAA scientists confirm the same stressful conditions are expanding to the Caribbean and may last into the new year, prompting the declaration of the third global coral bleaching event ever on record. More>>

Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news