Auckland Airport releases 2024 financial report

New Zealand’s Auckland Airport released its annual report covering its financials for the fiscal year to 30 June 2024.

Airport chairman Patrick Strange remarked on how the FY24 financial year was characterised by the strong return of international airline capacity, as well as the introduction of new carriers and routes. This brough seat availability to international destinations to around  91 percent of 2019 levels.

Strange explained: “The lift in capacity, particularly on North American routes with a 48 percent increase in available seats, has not only benefited Kiwis but led to a 40 percent growth in North American visitors. [This is] an important economic driver for New Zealand’s tourism industry.”

He added that the return of Sichuan Airlines in April of this year has improved connectivity with China. At present, six airlines now connect Auckland Airport with seven destinations in the Chinese Mainland. This increased seat capacity has already surpassed pre-pandemic levels by around two percent.

A total of 27 airlines flew non-stop between Auckland and 42 international destinations in FY24, up from 25 airlines and 40 destinations in FY23.

Dealing with high fares and competition

Over the past fiscal year, the Auckland Airport team worked hard to bring airlines back to Auckland, supporting them to grow and relaunch services. This, in turn, delivered choice and competitive fares for customers.

Strange said of this: “Where there is less capacity and competition on routes, airfares remain stubbornly high, most noticeably across the Tasman. When you couple the higher cost of flying with increased competition from other tourism destinations and the economic climate globally, we’ve seen flow-on impacts for key inbound visitor markets. This is especially true for Australia, with fewer Australians choosing New Zealand as their destination.”

He added that the current global backlog of replacement aircraft orders drives airlines to deploy available aircraft on shorter but higher-yielding routes whilst holding back on a full return to long-haul destinations. In which case, returning to full pre-pandemic capacity could take a while longer.

On the side of caution

Meanwhile, Auckland Airport chief executive Carrie Hurihanganui said that airport management will still take a careful approach to managing costs due to the current economic environment despite recent improvements.

Hurihanganui said: “Auckland Airport relies on customers coming and going through our doors so in this environment, where people are being more careful with household spending, we are taking a prudent and careful approach to spending.”

This conscientious approach to cost control also covers the airport’s infrastructure programme, putting an emphasis focus on functional, fit-for-purpose facilities delivered in an efficient and cost-effective manner.

Nevertheless, Hurihanganui added: “We’re making positive progress in this regard and this past year has seen the visible changes underway across the airport precinct: he first stage of the Transport Hub opening and the closure of the inner terminal road; work on our airfield expansion; road network upgrades; and importantly, real progress on the new domestic jet terminal.”

She expressed confidence that the Auckland Airport team is well on track to deliver the much-needed upgrade and renewal of an airport that serves as the gateway for more than 18 million travellers and $26 billion in annual trade.