Auckland Int'l Airport Meeting Results

26 October 2005

Auckland Int'l Airport Meeting Results

At Auckland International Airport Limited's (AIAL) annual meeting today, shareholders heard that, while the first three months of the current financial year has seen an easing in the growth rate of recent years, the trend remains positive. The airport remained upbeat about the programme of capacity and business development that it had already indicated.

AIAL chairman Wayne Boyd said, "Activity levels for the first three months of the new financial year continue to show an increase on the previous year, although (as expected) the rate of increase has eased further."

International passenger movements for the first three months of the current financial year totalled 1,586,003, a 2.8 percent increase over the same period last year. Domestic passenger movements increased 5.6 percent to 1,235,406. International aircraft movements were up 1.5 per cent, while domestic aircraft movements were up 1.8 per cent.

Overall, passenger movements totalled 2,821,409, up 4.0 per cent, while aircraft movements are up 1.8 per cent to 39,931.

Revenue for the three months totalled $71.2 million, an increase of 3.7 per cent over the previous corresponding period. The EBITDA result was $56.3 million, up 5.3 per cent on the corresponding period last year.

However, Boyd said, as a result of higher interest costs (associated with the financing of the special dividend of 12 cents per share), the surplus after-tax result for the three months was $24.9 million, compared with $26.5 million for the previous year.

Boyd said that the directors remained positive about the outlook for the 2006 financial year and beyond. "The level of passenger volume growth is expected to be positive, albeit lower than in recent years."

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Airport chief executive, Don Huse, said that according to forecast recently announced by the Tourism Research Council, visitor numbers would grow at a rate of 4.7% per annum through to 2011, "With this level of growth in prospect - and to be further encouraged - there is a compelling commercial imperative to invest in our aeronautical and non aeronautical businesses."

Last month, the company opened part of the second-level of the international terminal which contains 600 square metres of new retail space, a move the company has taken to sustain retail sales growth. The project is due for completion mid-December.

Huse said that the company had been undertaking a "comprehensive review" of the airport masterplan, which it expects to make public before the end of the year. "Current indications are that the airport will accommodate over 30 million passengers by the year 2050. The masterplan work certainly confirms the ability to provide the needed capacity, and more, on the present Auckland Airport site."

Boyd said that, "an after-tax result in excess of $100 million is still expected for the 2006 year, barring any material adverse events or unforeseen circumstances."

ENDS

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