Auckland International Airport Limited (AIA)

[Lewylewylewy]

The company has to make the spp worthwhile, otherwise why would anyone buy.

However, because this is the rate you can buy at, it's profitable to sell at any price above that. Therefore the price will go down closer to that level.

[macduffy]

The company has to make the spp worthwhile, otherwise why would anyone buy.

However, because this is the rate you can buy at, it's profitable to sell at any price above that. Therefore the price will go down closer to that level.

If the issue is oversubscribed there may be only a limited number available to buy at the SPP price. I agree that the price is liable to drift down.However, there are two questions to ponder. How much is the SP likely to reduce by? Can one be assured of the SPP "replacing" any shares sold now?

[robinnz]

I'm trying to work out the implications of their scaling if the offer is oversubscribed. For example, if say I have 5000 shares and apply for another 5000 but it is oversubscribed by say 30% what would be my allocation? The offer document is vague. Does anyone out there know the formula they will use?
Has their wording been used in other share offers?

[macduffy]

The usual "thing" is to leave management - and presumably issue managers and underwriters - discretion in how this is handled. Normally, the bigger one's holding, the better the chance of good treatment in the event of over-subscription.

Incidentally, note that applications are for dollar amounts, not number of shares.

[limmy]

Their email to entitled shareholders has this sentence:-

If scaling under the SPP is required, it will be done so with reference to your existing holdings at the record date, being 3 April 2020.
Hope this helps,
limmy

[moimoi]

Their email to entitled shareholders has this sentence:-

If scaling under the SPP is required, it will be done so with reference to your existing holdings at the record date, being 3 April 2020.
Hope this helps,
limmy

Many will have read this but its not necessarily clear what this actually means?

AFAIK

Assuming Robinnz has 5000 shares there are a number of possibilities...


- Robinnz can apply for 5000, and receive another 5000 (no scaling)

or

- Robinnz can apply for 5000, and receive another 3500 (assuming 30% scaling on the original holding)

and

- Robinnz could apply for 50,000, and receive another 3500 (assuming 30% scaling on the original amount)

GLTA

[Joshuatree]

Be lucky to get 20% of ones application imo, Thats my guess 20% max for most.

[ratkin]

Anyon else not had their offer document yet?

[limmy]

Ratkin, it came as an email. You can otherwise call Link to get your entitlement number.

[JAYAY]

Be lucky to get 20% of ones application imo, Thats my guess 20% max for most.

The question is - 20% of what?
IE If I own 5000 shares and I apply for $20,000 worth, what would the formula be if we were to be allocated 20%?
Bearing in mind that it seems that the number of shares owned and the amount applied for are both factors in the equation.

I actually emailed Link the other day with this question. Still waiting for a reply.

[macduffy]

The question is - 20% of what?
IE If I own 5000 shares and I apply for $20,000 worth, what would the formula be if we were to be allocated 20%?
Bearing in mind that it seems that the number of shares owned and the amount applied for are both factors in the equation.

I actually emailed Link the other day with this question. Still waiting for a reply.

I don't think you'll get a satisfactory reply, JAYAY. The share registrar doesn't have the discretion, it's with the company/issue managers/underwriters who will instruct the registrar what formula to use at the appropriate time - which will be after the issue closes, I expect.

[JeffW]

I'm beginning to think I might have tried to be a bit clever - I sold about 40% of my holding earlier in the week, thinking I'd buy them back in the SPP and make a dollar or so per share in the middle. Although my entitlement is based on my holding prior to selling, perhaps the scaling will mean I'll end up with a smaller holding when the dust settles, and the way the share price has gone in the last few days to buy back the shortfall might mean I end up about even all round. Never mind, them's the brakes

[waikare]

Anyon else not had their offer document yet?

I still haven't received mine either, (correspondce by post), my next mail delivery is on Monday, hopefully it will arrive then, have until Friday 24th to get my application in.

[Joshuatree]

If you havnt got email notification you can ring them(Link) on monday and get it changed from postal.

[Jim]

My wife have a small parcel and I have quite a large parcel and I am going to apply for the maximum amount to our holdings, I hope I can get the full amount.

[soar]

I'm beginning to think I might have tried to be a bit clever - I sold about 40% of my holding earlier in the week, thinking I'd buy them back in the SPP and make a dollar or so per share in the middle. Although my entitlement is based on my holding prior to selling, perhaps the scaling will mean I'll end up with a smaller holding when the dust settles, and the way the share price has gone in the last few days to buy back the shortfall might mean I end up about even all round. Never mind, them's the brakes

Hay Jeffw
Must be In the same boat as you :confused:

[Cyclical]

So Virgin AU is probably about to go into administration... How much are they likely to owe AIA? I assume ultimately this means less competition for trans Tasman fares, which likely means less people travelling back and forth over the ditch, which will have an adverse effect on AIA's bottom line.

https://www.abc.net.au/news/2020-04-20/virgin-australia-pilot-calls-for-lifeline-against-insolvency/12165550

[Balance]

https://www.nzx.com/announcements/352378

Oversubscribed by 100%+ ($489m vs $200m available via SPP) so expect massive scaling back.

[tango]

https://www.nzx.com/announcements/352378

Oversubscribed by 100%+ ($489m vs $200m available via SPP) so expect massive scaling back.

I just hope that they return the balance of the funds well ahead of "on or before 8 May 2020". I also have SPP for VGL and TRU that I may want to invest in...

[ratkin]

https://www.nzx.com/announcements/352378

Oversubscribed by 100%+ ($489m vs $200m available via SPP) so expect massive scaling back.

Shame, put in for the full 50k but initial holding was only 20k so going to be slim pickings

[macduffy]

Shame, put in for the full 50k but initial holding was only 20k so going to be slim pickings

Just hope that there were lots of holders of a handful of shares, not 20,000, who applied for the full $50,000 worth!

;)

[kiwico]

I find it interesting that the average application was only approximately NZ$15,000 - I wold have expected it to much higher. I expect to see much of my $50k application returned.

[Cadalac123]

I mean you could have bought near the share price offer on the market yet people opted to sell their holdings and not buy when it went close and instead rely on it when clearly it was going to get scaled

[EighthWonder]

Just hope that there were lots of holders of a handful of shares, not 20,000, who applied for the full $50,000 worth!

;)

I applied for over x10 of what I had if that makes ya feel better! Seems everyone is thinking its a good deal :)

[dibble]

Weird scenario in that the more you applied for above your holding, the more you'd cause over-subscription and the less shares you would get. I think. Still a bit curious about what 'reference to your holding' means in practice but suspect the disappointment will be larger than the number.

[tango]

I like it better when they give you an allocation and the option to oversubscribe than a blank cheque. What’s the point of investing $50k if your existing holding means you’re never going to get more than $10k. And then they hold your money for a week...

[tango]

I checked my Link account and so far no new shares showing up!

[limmy]

Does anyone know what time today, will the results of the allocations be known ?

[tango]

Does anyone know what time today, will the results of the allocations be known ?

Mine are showing in my Link account now. Massive scaling but on the good news front I can put the balance into other SPP offerings

[turnip]

Well that is interesting, my application wasn't scaled back at all. Maybe that is because I only applied for what I would have been entitled to if it had been a pro rata offer.

[EighthWonder]

I applied for 2145 shares and got 39 😂

[tango]

I applied for 2145 shares and got 39 😂

What is that as a % of your current shareholding? Most people I know seem to have got around a third

[EighthWonder]

Yep that’s about right

[ratkin]

What is that as a % of your current shareholding? Most people I know seem to have got around a third

Yeah that is about what I ended up with, most of the 50k will be coming back

[JW Invests]

Applied for $50k but only 336 shares allocated, which is about 33% of my holdings on ex-date. Slightly disappointed but somewhat expected given the discount.

[EighthWonder]

Applied for $50k but only 336 shares allocated, which is about 33% of my holdings on ex-date. Slightly disappointed but somewhat expected given the discount.

It is disappointing, I didn’t anticipate such scaling.

On the other hand AIA must be thinking they could have made the offer at $5 a share or so and not taken such a hit. It’s such a fast moving situation i take it they wanted to ensure they sold them all. Time will tell.

[tango]

Applied for $50k but only 336 shares allocated, which is about 33% of my holdings on ex-date. Slightly disappointed but somewhat expected given the discount.

It would been fairer to offer an allocation plus an option to oversubscribe rather than tying up 50k for a week

That’s how VGL has arranged their offer. It makes it easier.

[glennj]

I got 89.5% of what I applied for and I previously held 20,000 shares.
I only put up $34950 not $50k though and I'd hoped/thought I'd get all I applied for.

[Jim]

I applied $50000 for a parcel of 2000 shares I received 672 shares and I applied $50000 for another parcel of 19000 shares I'm still waiting for the my entitlement. And my $$$ will be sitting with them till 8 May, Not happy @!&$#

[dibble]

I think AIA failed us, I guess they need to pander to the big boys but small "retail" shareholders make the registry more diverse, probably more loyal and the bourse more interesting. The retail offer wasnt underwritten which suggests the first billion was adequate. For example a direct entitlement, taking only the money we apply for, is a smoother, less opaque process for retail shareholders. Also a minimum parcel, say 1000, could easily be bunged into their spreadsheet before scaling the rest, avoids some silly numbers. This is the least enjoyable offering Ive ever participated in and shame on AIA. Pity we have no say in the companies we own.

Disc1: no fan of corporate arrogance
Disc2: now own silly number

[tango]

I think AIA failed us, I guess they need to pander to the big boys but small "retail" shareholders make the registry more diverse, probably more loyal and the bourse more interesting. The retail offer wasnt underwritten which suggests the first billion was adequate. For example a direct entitlement, taking only the money we apply for, is a smoother, less opaque process for retail shareholders. Also a minimum parcel, say 1000, could easily be bunged into their spreadsheet before scaling the rest, avoids some silly numbers. This is the least enjoyable offering Ive ever participated in and shame on AIA. Pity we have no say in the companies we own.

Disc1: no fan of corporate arrogance
Disc2: now own silly number

Exactly. They should give everyone an entitlement and then an option to oversubscribe for a set amount in the event others don’t participate. VGL are doing it that way.

This is laziness by the share registry and I’m annoyed my refund is tied up. They are allowing up to a week to refund- Friday 8

[Southern Lad]

Dibble, what’s the problem with owning a silly number of shares?

As a regular DRP participant, my Holdings report is fill of shareholding’s that don’t end in ,000 but so what? Never had a problem selling my precise shareholding. My spreadsheet is capable of calculating dividends and current value of my shareholding either way.

[dibble]

There's no problem Southern Lad, Im quite capable of managing odd numbers, i refer more to the instances above (incl me) who were allotted under 1000. It's a mathematically valid way of allocating, sure, and I failed tactically but I hate obfuscation. AIA didnt need us to oversubscribe and I think most people prefer clarity over mystery. If they choose the "apply for up to $xyz" over an allotment, a minimum allocation makes it clear for minnows what we can hope for and if we just want 1000 we dont have to second guess and apply for a lot more to get around scaling. Thats all. Less unnecessary mystery, happier punters.

[Stranger_Danger]

Sounds like some of you guys owned a tiny number of shares, presumably purchased so you could ask for the maximum amount possible in a SPP?

I can understand long term holders who suffered lots of dilution on a decent holding being upset, but someone who had 100 shares and then applied for the maximum under the SPP is just upset that the institutions gamed the system better than they did.

[tango]

It’s the lack of clarity. And tying up funds unnecessarily. I’ve owned AIA for a couple of years.

[macduffy]

Exactly. They should give everyone an entitlement and then an option to oversubscribe for a set amount in the event others don’t participate. VGL are doing it that way.

This is laziness by the share registry and I’m annoyed my refund is tied up. They are allowing up to a week to refund- Friday 8

Entitlements and allocations are set by the company and underwriters to the issue, not by the share registry.

[tango]

Entitlements and allocations are set by the company and underwriters to the issue, not by the share registry.

TRU are also allowing people to apply for up to $50k but scaling according to shares held. In that case it might make more sense as it’s less likely to be popular BUT at 5 cents per share $50,000 is 1 million shares. TRU are only fundraising $2 million so the 50 K Seems excessive. If you ask me it looks like TRU copied and pasted the AIA offer.

[Balance]

Sounds like some of you guys owned a tiny number of shares, presumably purchased so you could ask for the maximum amount possible in a SPP?

I can understand long term holders who suffered lots of dilution on a decent holding being upset, but someone who had 100 shares and then applied for the maximum under the SPP is just upset that the institutions gamed the system better than they did.

You have hit the nail on the head.

It used to be that anyone with shares in a company doing SPP automatically gets a minimum of say, $5,000 and then, pro-rata for the balance based on the number of shares held. So someone with $100 shares gets the first $5,000 worth - same as someone with $100,000 shares.

Brokers used to ring up their clients (like me) with opportunities like these and it was fantastic! Buy $100 of shares in several accounts and get several $5000 of discounted shares in a SPP. Easy money!

Companies wised up to the practice (after numerous complaints from existing and/or bigger shareholders) so the SPP structure used these days now reflects shareholding levels, and at announcements - rather than an ex-date in the future.

[horus1]

AIA have issued about 20% more equity . They are semi regulated . How are they goingto get a decent return on the increased No of shares when they are on reduced passengers for at least a couple of years . Or do they put up all charges.

[winner69]

You have hit the nail on the head.

It used to be that anyone with shares in a company doing SPP automatically gets a minimum of say, $5,000 and then, pro-rata for the balance based on the number of shares held. So someone with $100 shares gets the first $5,000 worth - same as someone with $100,000.

Brokers used to ring up their clients (like me) with opportunities like these and it was fantastic!

Companies wised up to the practice (after numerous complaints from existing and/or bigger shareholders) so the SPP structure used these days now reflects shareholding levels, and at announcements - rather than an ex-date in the future.

I’m pretty sure that everyone (well almost everyone) got their fair share and nobody should really be complaining they were short changed.

As you pointed out on the day it was announced the SPP was just under 18% of the total raise ...and it appears that retail investors held about that %.

I’m not complaining ...even accepting the fact that refunds not immediate.

[limmy]

I’m pretty sure that everyone (well almost everyone) got their fair share and nobody should really be complaining they were short changed.

As you pointed out on the day it was announced the SPP was just under 18% of the total raise ...and it appears that retail investors held about that %.

I’m not complaining ...even accepting the fact that refunds not immediate. I fully agree.

[macduffy]

I agree, winner. That's the system used today, for better or worse.

:cool:

[dibble]

I agree, winner. That's the system used today, for better or worse.

:cool:

But there is a better way, that's my truck, we dont need "worse". BALANCE, I get your logic but you and StrangerDanger have chosen extreme examples that can very easily be resolved with an IF statement or two in Excel. Proviso being that the parameters are clear to all.

AIA actively chose unhelpful wording, "pro-rata" is unequivocal, "with reference to" is not, it makes you question why they dont say Pro Rata. They did this when obviously there was no longer an existential threat (they had their billion) and knowing there were better, proven ways of doing it, so they actively chose not to. A 1:3 rights issue, with an option to apply for more and taking payment just for allocated shares would have achieved about the same but without any mystery and surely, if you own more than $50k worth, fairer?? Yes, like the VGL offer.

Perhaps i've missed something. If not and VGL is the gold standard, and there is no existential threat (when perhaps all bets are off) then why not use it?
Apologies for banging on but SPPs may come thick and fast so good to get the topic out of the way.
Anyway I'd better shut up.

[Bjauck]

You have hit the nail on the head.

It used to be that anyone with shares in a company doing SPP automatically gets a minimum of say, $5,000 and then, pro-rata for the balance based on the number of shares held. So someone with $100 shares gets the first $5,000 worth - same as someone with $100,000 shares.

Brokers used to ring up their clients (like me) with opportunities like these and it was fantastic! Buy $100 of shares in several accounts and get several $5000 of discounted shares in a SPP. Easy money!

Companies wised up to the practice (after numerous complaints from existing and/or bigger shareholders) so the SPP structure used these days now reflects shareholding levels, and at announcements - rather than an ex-date in the future.
Yep investing on the NZ share market was akin to a fight at the O.K. Corral. Probably contributed to why NZ individuals stuck to real estate investing and the nz share market being tiny?

Thesedays the AIA is desperate to survive hence a decently organised rights issue was replaced by the SPP & insto placement. Good luck to holders.

FWIW, Long term I think Aia, minus some of its more ambitious pre-Covid capital programs, will be a bottom drawer holding. There could be several years of adjusting to a post-Covid way of travelling.

Disc: former shareholder.

[limmy]

AIA will be around a lot longer than Covid-19 will be.
Mankind won't be giving up air travel indefinitely.

All the institutions know the above and hence their book building was fully subscribed. Agree ?
I'm just glad that us ordinary shareholders were given our SPP.

[Bjauck]

AIA will be around a lot longer than Covid-19 will be.
Mankind won't be giving up air travel indefinitely.

All the institutions know the above and hence their book building was fully subscribed. Agree ?
I'm just glad that us ordinary shareholders were given our SPP. Not being either a virus or investment expert, I am not sure about your expecting AIA to be around for longer than Covid-19!

I did not mean to indicate that I thought air travel would cease....just that the Covid-era may see a change perhaps for some years to its volume and profitability. A slimmer AIA with less grandiose expansion plans may well prosper. As you say the capital raising was very well supported and I may regret not having kept a holding.

[spmcg]

I'd be interested in knowing how many people actually knew this:

In accordance with the Offer Document, all refunds will be made without interest. Any amount lesser than $5 due to scaling or
rounding will be retained by Auckland Airport.


Wonder how much this made for AIA...

[Cyclical]

I'd be interested in knowing how many people actually knew this:

In accordance with the Offer Document, all refunds will be made without interest. Any amount lesser than $5 due to scaling or
rounding will be retained by Auckland Airport.


Wonder how much this made for AIA...

Cheeky buggers. It'll be more than a couple of lattes, that's for sure.

[peat]

Cheeky buggers. It'll be more than a couple of lattes, that's for sure.

depends whether you are buying them at the airport or not! :p

[tango]

I'd be interested in knowing how many people actually knew this:

In accordance with the Offer Document, all refunds will be made without interest. Any amount lesser than $5 due to scaling or
rounding will be retained by Auckland Airport.


Wonder how much this made for AIA...
I saw that in my allocation letter.

The odds that someone would apply for and receive the exact amount they apply for with less than $5 change is small but still it seems very wrong not to refund it.

[macduffy]

Pre-issue holding 16,000 - many held from the IPO all those years ago.

Applied for $25,000 worth.

Received about 97%.

Not complaining.

[Poolboy]

Hi, a new guy here. I got the full $50k worth. Well, less the $5 but that's a tip for good behavior. I have been with them for ten years so maybe that was built into the algorithm. I have no idea why it did a big did today when we are on the verge of having a bit more travel.

[BlackPeter]

Hi, a new guy here. I got the full $50k worth. Well, less the $5 but that's a tip for good behavior. I have been with them for ten years so maybe that was built into the algorithm. I have no idea why it did a big did today when we are on the verge of having a bit more travel.

Hi Poolboy, welcome to the forum!

I think you might find that many stocks (including AIA) increased over the last 8 weeks in price without the underlying value increasing. Many of these companies (including AIA) are bleeding cash every day - and even if traffic goes a bit up they will keep writing huge losses - and this at least for months (possibly years) to come. Huge fixed costs and only fractions of the income they had before the crisis.

Empty parking lots, empty duty free shops, no customers in the airport restaurants - and less than 10% of the previous air traffic without the option to reduce safety or security costs. Ouch.

I suppose at some stage no share can live anymore only from hope and hype ... and some shareholders are probably using the opportunity to take profits as long as the SP is high and the hype still up.

In my view - what we will see over the coming weeks is just markets coming to grips with reality.

[Cyclical]

Not sure if I have this wrong or not but presumably some of the dip would be due to dilution with the new shares out there now (or does the less ugly leverage negate that?), plus recipients banking the margin, no?

[Poolboy]

Thanks for the welcome Peter.

Good thinking Guys. things become obvious when someone else tells you what you already know LOL

Yes, we certainly have bad times ahead of us.

[ratkin]

When is the money coming back from share purchase? Not showing up in my account yet

[Filthy]

When is the money coming back from share purchase? Not showing up in my account yet

mine came back ages ago. like the next day

[limmy]

When is the money coming back from share purchase? Not showing up in my account yetThe refunds were due on 8th of May. If you haven't received yours, you should call LINK.

[ratkin]

The refunds were due on 8th of May. If you haven't received yours, you should call LINK.


Ah thx, have found it, went to one of my lesser used banks

[Joshuatree]

Applied for the full $50,000 worth got 37% of that. thats fine for our portfolio.Now how long will the s/p hold up for.Vol dropping off atp and s/p crabbing.

[RTM]

I hope AIA have used this time for maintenance on the runways. What an ideal low use window of opportunity.
I guess they will need it again one day.

[mondograss]

I hope AIA have used this time for maintenance on the runways. What an ideal low use window of opportunity.
I guess they will need it again one day.

They will apparently:
https://www.stuff.co.nz/business/300009664/auckland-airport-brings-26m-runway-works-forward-with-flights-down-95-per-cent

[RTM]

They will apparently:
https://www.stuff.co.nz/business/300009664/auckland-airport-brings-26m-runway-works-forward-with-flights-down-95-per-cent

Ah... I missed that, great !,
Thanks.
RTM

[850man]

https://www.nzx.com/announcements/353237

Reporting out:
Auckland Airport total passenger volumes decreased by 42.0% in March 2020 versus last year.
Auckland Airport total passenger volumes decreased by 97.5% in April 2020 versus last year.

Shocking but not unexpected.

[peat]

https://www.nzx.com/announcements/353237

Shocking but not unexpected.

well yeh but 2.5% of normal !!!

[BlackPeter]

well yeh but 2.5% of normal !!!

Just wondering how big their profit will be on this base?

2.5% of previous revenue (probably an optimistic guess)
70 to 80% of previous expenses (again - probably optimistic)

What possibly can go wrong?

[dreamcatcher]

Virtually near zero business but amazingly SP stays above $5 .........

[macduffy]

Virtually near zero business but amazingly SP stays above $5 .........

The market's looking well beyond the next 6-12 months' business drought.

[BlackPeter]

The market's looking well beyond the next 6-12 months' business drought.

Perhaps ... though the market does not seem to be better in predicting the future than anybody else.

I think you mean to say the market hopes like hell for tourism and travel to return to post C-19 levels. Whether this hope eventuates, we will find out in due course.

[macduffy]

Perhaps ... though the market does not seem to be better in predicting the future than anybody else.

I think you mean to say the market hopes like hell for tourism and travel to return to post C-19 levels. Whether this hope eventuates, we will find out in due course.

Not exactly, BP. More like an expectation that aircraft aren't going to go the way of the dinosaurs and that there is a future for air travel, of some sort - and that the planes will need to land some where.
:cool:

[traineeinvestor]

Just wondering how big their profit will be on this base?

2.5% of previous revenue (probably an optimistic guess)
70 to 80% of previous expenses (again - probably optimistic)

What possibly can go wrong?

Revenue drop will not be as severe as that – even during the Level 3 and Level 4 lockdown there were still modest numbers of international and domestic flights and they charge airlines for the privilege of parking on the tarmac. Then there's the rental income from the domestic properties (about 12% of total revenues in the last half year) and a very small amount of revenue from the hotels and retail within the airport (I assume these have not gone all the way to zero). For the current reporting period, there were also the few months before it all went pear-shaped and there may be a small pick up in domestic travel at the end.

Regardless, it would be astonishing if the current half year earnings and cash flow statements didn't include a lot of red ink and numbers in parentheses.

IMHO the current share price assumes a rapid return to something not too far short of the old normal as far as revenue is concerned. I can see a case for a no-quarantine trans-Tasman bubble, similar arrangements with some of the Pacific Islands and possibly travel corridors with places which have very limited local infection rates + a robust testing regime but even the optimist in me sees that as being months away (at best). A return to something approaching the old normal is a long way off (IMHO).

[traineeinvestor]

Possibly one of the very few airports that might be doing well at the moment: https://www.straitstimes.com/singapore/transport/only-10-out-of-200-sia-planes-still-flying-passengers-most-parked-at-changi-with

[BlackPeter]

Not exactly, BP. More like an expectation that aircraft aren't going to go the way of the dinosaurs and that there is a future for air travel, of some sort - and that the planes will need to land some where.
:cool:

Absolutely. (Some) planes will keep flying. But just do the numbers ... air traffic after 9/11 took 3 years to get back to normal. At that stage it was really just quite irrational fear keeping people away from travelling (just looking at the odds of a plane getting 9/11'ed), not the real risk to catch the virus which currently and likely for a long time will linger around.

No way to avoid sitting on an international flight next to people from Trump land, Boris land or Bolsonaro land to just name the three biggest idiots as example. Infected people will hang around in these countries as well as in the third world for many years to come. These are real risks.

As well - people learnt this time thanks to C-19 that much travel is not necessary. Just as example - I really enjoy these virtual AGM's - no need to spend a day travelling as previously. Virtual conferences are great as well. I expect long term a significant drop in "in the flesh"conferences and I am pretty sure much business travel will in future be considered unnecessary where a Zoom call might do ... which just leaves the question how much lower the new normal will be.

So lets assume it takes this time just 5 years for air travel to get back to its new normal - say 66% of previous traffic. Anybody wants to calculate what Auckland airport is worth under these circumstances? Pretty sure this would under current conditions not even mean break-even.

[Cyclical]

So lets assume it takes this time just 5 years for air travel to get back to its new normal - say 66% of previous traffic. Anybody wants to calculate what Auckland airport is worth under these circumstances? Pretty sure this would under current conditions not even mean break-even.

It's probably a fair bet that if the new normal is 66% of the old, that travel expenses will increase to cover a significant proportion of that short fall, landing expenses being part of that. A lot of the expenses in the industry likely don't have the room to find the efficiencies required to offset such a reduction in headcount. You'd assume (or at least expect) that airline competition would have reduced too at the end of all this (although AIR will be praying there isn't a reset, leaner and meaner Virgin AU). Flights in real terms have come down massively in recent decades. Maybe we're about to see a correction there. If that comes to fruition, it will rub salt into the wounds of those who haven't been able to get a ticket refund and yet will struggle to redeem their credit on similarly priced tickets.

[limmy]

People must be expecting a resumption of air travel very soon. AIA has gained 5.4% today.

[44wishlists]

People must be expecting a resumption of air travel very soon. AIA has gained 5.4% today.

Funny that MCK just had their presentation, "citing that Trans-Tasman Bubble is still sometime away."

[JeremyALD]

I'm going to put it out there and say that in a pool of tough competition, this is the most overvalued share on the NZX.

[Waltzing]

It matter not what the share price is it matter what the quantum of money brought forward is and the support provided by central banks.

[peat]

I'm going to put it out there and say that in a pool of tough competition, this is the most overvalued share on the NZX.
havent done details but from a risk perspective yeh I would agree. from utility to rock-star to death star.

[Joshuatree]

Odt.Singapore Airlines resumes NZ flights.1 hour ago (https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=2ahUKEwivuOjph-LpAhW3yDgGHRPgC_cQ0PADegQIBRAT&url=https%3A%2F%2Fwww.odt.co.nz%2Fbusiness%2Fsinga pore-airlines-resumes-nz-flights&usg=AOvVaw2uhGaB4GaQmPGdmLi7X8L5)

[Traderx]

AIA SP is above where it was as short a time ago as 26 October 2018 when c.10k/day visitors were entering NZ, a near all time high. How many years will it be before we return to those levels?

[Mr Slothbear]

https://www.stuff.co.nz/business/property/121796851/coronavirus-auckland-council-proposes-selling-shares-in-airport-and-port

Sell down by auckland council looks very likely

[TommyShelby]

Assuming we return to FY19 levels by FY24...on a 19x EBITDA multiple (long run average) and PV'ing gets you to $6.15. Seems largely fair value at these levels to me.

[King1212]

Wow....heading to $9 soon..hihihi

[trader_jackson]

https://www.nzx.com/announcements/355554

I thought today's update (of abnormal only being up to $90m worst case) was absolutely amazing... market was pricing in significantly worse! (especially when the share price dived to my entry point of $4.50)

[tango]

When you consider our PM is saying borders aren’t opening any time soon AIA has a long way to go...

[BlackPeter]

https://www.nzx.com/announcements/355554

I thought today's update (of abnormal only being up to $90m worst case) was absolutely amazing... market was pricing in significantly worse! (especially when the share price dived to my entry point of $4.50)

Interesting that today's update does not even mention boring stuff like revenue (or the lack of it) and margins. Why would anybody want to know about these things?

Ah yes - and market clearly does not care about fundamentals in the short term ... do I sense a smell of tulips in the air ;)?

Suspect that at some stage market might notice that their revenue is severely impaired ... but hey, some things just might take a bit longer.

Interesting to read how plane manufacturers are doing ... and sort of wondering what vehicles AIA's clients will use to avail themselves in the years to come of AIA's services? Are they planning to use paper planes?

https://www.bbc.com/news/business-52827377
https://www.theguardian.com/business/2020/jun/05/airbus-looks-to-cut-500-uk-jobs-as-orders-dry-up
https://simpleflying.com/airbus-job-cuts-expected/

Less planes - less traffic - less revenue for AIA. Simple as that.

[winner69]

Interesting that today's update does not even mention boring stuff like revenue (or the lack of it) and margins. Why would anybody want to know about these things?

Ah yes - and market clearly does not care about fundamentals in the short term ... do I sense a smell of tulips in the air ;)?

Suspect that at some stage market might notice that their revenue is severely impaired ... but hey, some things just might take a bit longer.

Interesting to read how plane manufacturers are doing ... and sort of wondering what vehicles AIA's clients will use to avail themselves in the years to come of AIA's services? Are they planning to use paper planes?

https://www.bbc.com/news/business-52827377
https://www.theguardian.com/business/2020/jun/05/airbus-looks-to-cut-500-uk-jobs-as-orders-dry-up
https://simpleflying.com/airbus-job-cuts-expected/

Less planes - less traffic - less revenue for AIA. Simple as that.

Doesn’t sound so bad .....$50m to $90m of impacts

But $150m of positive revaluations offsets a lot of the real operational stuff

Rent abatement $65m big amount eh ...shops closed and now probably not even worth reopening now

But as you say no problems ...look through Covid and future is bright

[Waltzing]

its a travel hub with a mall.. any other business would have had its share price trashed

[Marilyn Munroe]

I was surprised to learn of Christchurch Airports proposal to build an international airport at Tarras adjacent to existing Wanaka and AIA part owned Queenstown Airport.

Will Central Otago end up like South East Queensland with too many airports?

Boop boop de do
Marilyn

[Sideshow Bob]

I was surprised to learn of Christchurch Airports proposal to build an international airport at Tarras adjacent to existing Wanaka and AIA part owned Queenstown Airport.

Will Central Otago end up like South East Queensland with too many airports?

Boop boop de do
Marilyn

There is a movement to take the airport completely out of Queenstown - for alternate land use and land value.

Worth noting Tarras is under Central Otago District Council, Wanaka is under QLDC who own 75% of Qtown airport. $45m is a decent amount of wedge for Chch airport to spend to have a crack......

[Zaphod]

It could be a long hard fight to gain approval under the RMA, assuming it's still around by the time they kick off the approval process.

[Bjauck]

Profit down 63%.
https://www.stuff.co.nz/business/122506184/auckland-airport-posts-194m-profit-down-63-per-cent

Will recovery take longer than previously expected?

[value_investor]

I don't see the company being out of the woods anytime soon here. All of the metrics will continue at this level for the foreseeable future and their CEO has already said he expects this to go on longer than the 3 years predicted by the Air Travel Association. The operating section of the cashflow is down 53% to $175m and they are predicting CAPEX of $250-300m in FY21. From that, they'll be burning cash definitely this FY.

Luckily they raised capital very early to have a $700m buffer. However, buying when the shares are so diluted doesn't appeal. I wish there was some value here but that's not there unless you go down into the low 4s for me.

This is so far away from being a fair valuation still. At $6.45, the PE is about 50. If it returns to its regular pre covid underlying earnings then it is valued at about a PE of 36. Add in the uncertainty, and I don't think I'd be able to sleep well on this.

[Brain]

I don't see the company being out of the woods anytime soon here. All of the metrics will continue at this level for the foreseeable future and their CEO has already said he expects this to go on longer than the 3 years predicted by the Air Travel Association. The operating section of the cashflow is down 53% to $175m and they are predicting CAPEX of $250-300m in FY21. From that, they'll be burning cash definitely this FY.

Luckily they raised capital very early to have a $700m buffer. However, buying when the shares are so diluted doesn't appeal. I wish there was some value here but that's not there unless you go down into the low 4s for me.

This is so far away from being a fair valuation still. At $6.45, the PE is about 50. If it returns to its regular pre covid underlying earnings then it is valued at about a PE of 36. Add in the uncertainty, and I don't think I'd be able to sleep well on this.

I am not a shareholder and would not be tempted to buy even in the low 2s. Far too many unknowns and it is very hard to be positive about international travel to and from NZ. Maybe in 2 years time there may be a clearer picture. Until then there are better opportunities which include having cash in the bank. Institutions have no choice but to support these shares but small shareholders have better options.

[horus1]

sold out completely today. This with FBU, show ineptitude by the directors who should have acted sooner to reduce costs . How you can justify the price with no divs for years is beyond me.

[bottomfeeder]

Sadly, companies paying dividends at the moment are the exception rather than the rule. However profits are more important. Cant see Auckland Airport making profits for some time to come. But FBU is another matter. The chances of increased SP of FBU is better than bank interest rates, imho.

[macduffy]

This with FBU, show ineptitude by the directors who should have acted sooner to reduce costs .

Are you sure this isn't a "with benefit of hindsight" comment, horus? After all, the implications of the virus took some time to develop and become "obvious". Even now, it would take a wild guess to predict the future course and outcome.

[wilco]

sold out completely today. This with FBU, show ineptitude by the directors who should have acted sooner to reduce costs . How you can justify the price with no divs for years is beyond me.

Ditto here horus - have held since float.

[tango]

Are you sure this isn't a "with benefit of hindsight" comment, horus? After all, the implications of the virus took some time to develop and become "obvious". Even now, it would take a wild guess to predict the future course and outcome.

Playing devil’s advocate here… Air New Zealand were very fast to downsize and cut flights and staff. They saw the writing on the wall long before anyone else. Qantas was still expecting life to go on like normal. Air New Zealand slashed their operations immediately.

AIA did a let’s cut some capex and costs, raise some funds and cross our fingers this is over quick. I wouldn’t say the management is inept but I don’t think they handled the crisis as well as they could have. There are lots of variables but you have to contingency plan for the worst case scenario and I don’t think they did. Air New Zealand did plan for the worse case knowing they could ramp up again fast if necessary

AIA are doing some good forward planning for when the borders reopen but I think they are being wildly optimistic with their forecast dates and ramp up time for recovery of domestic and international flights.

[macduffy]

Fair comment, tango. I go along with that.

[winner69]

From the paper that gives you Hawkesby and Hoskings here’s Mander’s opinion piece on AIA

https://www.nzherald.co.nz/opinion/news/article.cfm?c_id=466&objectid=12366039

[dreamcatcher]

Possible positives for AIA with Aus/NZ bubble would assist recovery if Japan joins as well........ took the opportunity to top up today

"Japan is planning to remove a ban on overseas travel to China and 11 other countries and regions including Taiwan, Australia, New Zealand, Singapore, South Korea, Vietnam and Malaysia next month while still advising against non-essential travel."

[winner69]

With the share price heading back to 7 bucks can we assume that the short term uptrend from last September has now endth and that the downtrend from June 2019 (about $10) is still in place

[BlackPeter]

With the share price heading back to 7 bucks can we assume that the short term uptrend from last September has now endth and that the downtrend from June 2019 (about $10) is still in place

Interesting chart ... and yes, I think a continuation of the downtrend would make a lot of sense from a fundamental perspective. On the other hand - SP does not always follow reason :):

[Filthy]

one of the rare times I actually agree with Morningstar.... (see snapshot below)
other question I keep asking myself is, even after the vaccine rollout, how effective will it be and how long will it be before people will be able to obtain travel insurance again covering them against Covid? if they cant get cover, will this deter people from travelling and further slow recovery? no divis before... 2022? 2023?
the TP of $6.50 seems completely feasible...

Recommendation impact (last updated: 20/01/2021). Event analysis: Slow Vaccine Rollout to Delay Sydney and Auckland Airport Recovery, but Long-Term Growth Still Solid

Vaccines don't end pandemics; vaccinations do. This fact has hampered the recovery expectations of many businesses, perhaps none more so than international travel. Despite the encouraging availability of several COVID-19 vaccines, which have largely tracked our expectations, the slow pace of vaccinations globally has kept the borders of Australia and New Zealand mostly closed to outside tourism. We still think there's pent-up travel demand among consumers, which should result in rapid growth in lucrative international traffic at each airport once borders are open. But with Australia's Health Department suggesting borders could remain closed through the better part of calendar 2021, and New Zealand likely following suit, we've pushed back our expected start to this rebound until late this year versus roughly March 2021 previously. Nonetheless, our fair value estimates for each company remain unchanged, at AUD 6.20 per security for Sydney Airport and NZD 6.50 (AUD 6.00) per share for Auckland, with Sydney screening as the more attractive of the two at present.

Unsurprisingly, Sydney Airport continued to report international traffic near zero in December. Sydney's overseas passengers were down 77.5% in calendar 2020, to 3.8 million passengers, tracking our expectation. But our later expected rebound means we now forecast only 35% gains in calendar 2021, to 5.1 million passengers, compared with 80% growth to 6.8 million previously, with most of the year-over-year gains in the fourth quarter.

Similarly, Auckland Airport's first-half fiscal 2021 will likely show sharp drops in its international traffic, with passengers already down 97% year-to-date through November 2020 versus the previous corresponding period, or pcp. Like Sydney, we've reduced our near-term rebound trajectory. We now forecast fiscal 2021 international passengers of only 619,000 versus 3.1 million previously, and fiscal 2022 of just 3.3 million compared with 7.9 million before."

[Filthy]

SYD down ~13% from recent highs after Nov 9 vaccine news, AIA only down ~9% over the same time period. still at least another 4% to go. puts it close to your $7 bucks eh winner

[Baa_Baa]

"November 2020 Monthly traffic update

Auckland Airport total passenger volumes decreased by 69.7% in November 2020
versus last year. International passengers (excl. transits) were down 97.2%,
transit passengers were down 94.1% and domestic passengers were down by
38.3%."

December 2020 Monthly traffic update preview

Auckland Airport total passenger volumes decreased by 70.3% in December 2020 versus last year. International passengers (excl. transits) were down 97.3%, transit passengers were down 95.9% and domestic passengers were down by 32.2%.

:t_down: SP showing amazing resilience in light of the terrible passenger stats, which won't get much better until borders re-open around the world. Whenever that might be.

[winner69]

With the share price heading back to 7 bucks can we assume that the short term uptrend from last September has now endth and that the downtrend from June 2019 (about $10) is still in place

Share price below 7 bucks now - as post a week or so the short term uptrend has endth and the longer term downtrend (from about$10) is still in place

Might drift down to 6 bucks something?

Could be interested in taking a closer look but me old mate Hoop as said NZX starting to correct and when this happens one shouldn't even be tempted in buy in (particularly a downtrending stock)

Will just keep an eye on the squiggly line on the chart methinks

[winner69]

I see Kingfish still have sizeable pile of AIA shares (6.4% of portfolio)

They said this in December update -

Auckland Airport (-2%) was impacted by new community cases of COVID-19 in Auckland and parts of Australia, which delayed the timing of a possible fully open Trans-Tasman travel bubble.

Seeing bubble looks a while off still suppose need to expect more weakness in AIA share price

[Filthy]

Seeing bubble looks a while off still suppose need to expect more weakness in AIA share price

which will effect AIR & SKC too

[Habits]

Could be interested in taking a closer look but me old mate Hoop as said NZX starting to correct and when this happens one shouldn't even be tempted in buy in (particularly a downtrending stock)



A bunch of company results due soon... and upwards direction of dow and nasdaq will continue for another few months

[BlackPeter]

A bunch of company results due soon... and upwards direction of dow and nasdaq will continue for another few months

True - however not sure whether a DOW rally can push AIA more up than our quarantine restrictions coupled with another nice lockdown can pull it down :):

At some stage even shares like AIA can't defy gravity anymore - a forward PE of 40 coming with up to a decade of negative growth (i.e.. air traffic lower than 2019) or so is not that appealing, isn't it?

[JSwan]

AIA is also a property play for some people

[BlackPeter]

AIA is also a property play for some people

True ... and I guess the engine might still run on 3 vs the normal 6 cylinders, but the question is - can the car win the next race in this condition?

[James108]

Black Peter I really don’t buy this decade of negative growth narrative and am happy to disagree with Foran on this. In fact I think Foran may not believe it either but is just managing expectations.

At the moment the market appears to agree with me but if it started to factor 10 years of negative growth in I would be buying aia. Not a holder of air or aia yet though.

[BlackPeter]

Black Peter I really don’t buy this decade of negative growth narrative and am happy to disagree with Foran on this. In fact I think Foran may not believe it either but is just managing expectations.

At the moment the market appears to agree with me but if it started to factor 10 years of negative growth in I would be buying aia. Not a holder of air or aia yet though.

A wise man once said "Prediction is very difficult, especially about the future". I think he was right.

But apart from that - while we don't know how long this Covid thingee will chase us ... I believe people got already used to travelling less (and particularly business trips will stay down after companies noticed the benefits of zoom calls). Any actions against climate change (fuel prices up, flight shame, taxes and emission trading) won't help in returning air traffic back to the previous glory either ...

While nobody knows, I think it might pay to be cautious when betting on the return of unlimited, unrestricted and ever growing air travel ...

Ah yes, and I agree with you - based on the share price it appears the market seems to assume it will all be over by lunch. Neither the current certainties nor any additional risks seem to be priced into AIA and (still worse) AIR. Gamestop mark 2, just in slow motion?

[Getty]

Agree with all of that, and they will have lost economy of scale.

The fares will be significantly dearer than before, deterring some travellers.

AIRlines will have to take a long term view, re establishing perceptions, affecting profits in the medium term.

[James108]

You are right, that predictions are difficult which is why I am surprised people are latching on to what to me seems a hugely pessimistic point of view. Particularly given the resilience the economy has demonstrated to the lockdowns to date. But hey we wouldn’t be here if we didn’t think we knew better than others...

I agree air and aia are probably a tad overvalued but I am going to assume your comments re: GameStop are tongue in cheek.

[BlackPeter]

... I am going to assume your comments re: GameStop are tongue in cheek.

Well, of course it is not the same. What I meant that both (or all three, if we add AIR) appear to have at times a price which is decoupled from the underlying value :):. Clearly the ratios are different - GameStop was blown up by factor 10, AIR might be blown up by factor 3 or 4 and AIA might be blown up by factor 2 (depending on how you value their property and assess their future business, of course).

[winner69]

This announcement worse than one of Jacinda’s announcements

Took ages of explanation before we got to the bit about how much they made or didn’t make.

https://www.nzx.com/announcements/367758

[bull....]

dont think things will ever return to same levels before covid for this company. people are getting used to zoom meetings now , less business travel. int travel take years to recover and unknown if ever back to same levels due to people becoming used to stay at home life

[BlackPeter]

dont think things will ever return to same levels before covid for this company. people are getting used to zoom meetings now , less business travel. int travel take years to recover and unknown if ever back to same levels due to people becoming used to stay at home life

In the news yesterday that government plans stiff new travel taxes (something like a departure fee of up to $50 for flights to Australia and up to $340 for flights to Europe).

https://www.nzherald.co.nz/nz/tourism-report-watchdog-calls-for-new-travel-tax/ZKRNSRGHEEFWNOBHNNI7M5HPZI/

I am sure this will help keeping (still) more people away from airports.

[bull....]

In the news yesterday that government plans stiff new travel taxes (something like a departure fee of up to $50 for flights to Australia and up to $340 for flights to Europe).

https://www.nzherald.co.nz/nz/tourism-report-watchdog-calls-for-new-travel-tax/ZKRNSRGHEEFWNOBHNNI7M5HPZI/

I am sure this will help keeping (still) more people away from airports.

govt just confirms what i was saying about less visitors.

As NZ already has a departure tax the govt increasing it significantly means they see less people coming to NZ in the future so to maintain the books they need to increase departure tax significantly on the smaller number of people.

[James108]

dont think things will ever return to same levels before covid for this company. people are getting used to zoom meetings now , less business travel. int travel take years to recover and unknown if ever back to same levels due to people becoming used to stay at home life

I really disagree with this. Increasing international travel has been a mega trend for the last 30 years (or more?). As people across the world become richer (another mega trend) they travel more. Further to the above in the last 10 years (since facebook/instagram became popular) I believe we have witnessed the beginning of another mega trend and that is the movement of discretionary spending from consumer products (e.g. fancy cars) to experiences (e.g. travel) that you can post about on social media.

Granted this MAY be offset by a reduction in business travel given our recent lockdown experiences. But I think it is a brave man to bet against the above mega trends.

Disc: don't hold AIR or AIA - but would at the right price.

[peat]

Monthly Statistics compared to previous year will start to look better now

April 2021 Monthly traffic update preview

1,547.9%. Auckland Airport total passenger volumes increased by 1,547.9% in
April 2021 versus last year.

International passengers (excl. transits) were up 114.0%, transit passengers were up 36.1% and domestic passengers were up
by 5,586.3%.

:p

[mikelee]

what does it take to just break-even though?

[winner69]

Suppose no change to guidance is good news in that the loss isn’t going to be more

But mikelee did mention ‘break even’ the other day …bit optimistic I fear


http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/AIA/374893/349419.pdf

[flyer]

Share price must be up on an a proposal of a consortium to buy into Sydney Airport just announced today.

[RTM]

Share price must be up on an a proposal of a consortium to buy into Sydney Airport just announced today.

http://research.iress.com.au/IDS/old/20210705/02391761.pdf?uid=FAF0893DF519034890A5145EDDF876091 3640000F4546056F2ABE540093D250091850000&ppv=

Yeah, big surprise.

[winner69]

Share price must be up on an a proposal of a consortium to buy into Sydney Airport just announced today.

Interesting move by investors wanting things on cheap.

Do you think this puts AIA on somebody’s buy list

Or share price movement today reflecting relative value

Canadians got rejected years ago at just over $3.50:

[Balance]

Interesting move by investors wanting things on cheap.

Do you think this puts AIA on somebody’s buy list

Or share price movement today reflecting relative value

Canadians got rejected years ago at just over $3.50:

Have to say that Michael Cullen made one of the best decisions ever in rejecting the takeover offer for AIA.

[Waltzing]

https://www.stuff.co.nz/business/industries/125651153/covid19-businesses-should-plan-for-borders-being-closed-in-two-or-three-years-time-rob-fyfe-says

[mikelee]

I personally do not see AIA as being worth more than $6, at best, until borders are fully open again.

[RTM]

I personally do not see AIA as being worth more than $6, at best, until borders are fully open again.

I was thinking more or less the same with respect to my Sydney Airport holding.

[Joshuatree]

Longterm longterm. They've got a very large sandbank /landbank to develop something that Sydney doesnt have.

[greater fool]

I was thinking more or less the same with respect to my Sydney Airport holding.

Yep. sold my SYD holding yesterday. :sleep:

[greater fool]

Longterm longterm. They've got a very large sandbank /landbank to develop something that Sydney doesnt have.

But the Oz gummint is building a second Sydney airport............................:confused:

[kiwico]

Longterm longterm. They've got a very large sandbank /landbank to develop something that Sydney doesn't have.

And SYD doesn't even own Sydney Airport - it is on a long terms lease.

[Filthy]

$8.45 now https://www.asx.com.au/asxpdf/20210816/pdf/44zb3rs3nkl9nm.pdf but that's still not enough apparently.
maybe they will give up and have a crack at AIA instead....

[Marilyn Munroe]

maybe they will give up and have a crack at AIA instead....

Christchurch City ratepayers will be hoping the money burns a hole in their pocket and they offer Christchurch City Holdings silly money for the greenfields airport site in Tarras.

Boop boop de do
Marilyn

[Sideshow Bob]

AIA – FY21 Annual Results - NZX, New Zealand’s Exchange (https://www.nzx.com/announcements/377526)

AIA – FY21 Annual Results

19/8/2021, 8:42 amFLLYRMedia Statement | 19 August 2021
FY21 Annual Results: Future focused and resilient despite market conditions
Highlights

• First full-year underlying loss in the history of Auckland Airport
• Restructured funding and covenants support recovery and future development plans
• Reset infrastructure programme and new precinct retail development to be aligned with international aviation recovery
• New domestic hub to be merged into the international terminal
• New retail outlet centre featuring more than 100 stores and food outlets planned
• New sustainability strategy and goals - a pathway to Net Zero Carbon emissions by 2030
• Auckland Airport to give permanent employees $1,500 in airport shares to thank them for their efforts over the past year
Auckland Airport today announced its financial results for the 12 months ended 30 June 2021.
Auckland Airport Chair Patrick Strange said: “It has been a year of disruption, resilience and adaptation for Auckland Airport as we worked through the pandemic to keep New Zealand safely connected to the world. Our results continue to reflect the serious impact that COVID-19 has had on our business and the wider aviation sector. This week’s national lockdown is a reminder that while there is still a great deal of uncertainty, the accelerating vaccination programme allows us to plan beyond the current phase of the pandemic with increasing confidence.

“I want to thank our people for the way they have responded to the COVID-19 crisis. They have put health and safety and the community first, working hard to always meet public-health requirements even as the apparent risks of the virus and the protocols for managing it were constantly shifting. In this difficult environment our team has remained committed to our recovery, planning ahead to strengthen the business and position us to succeed as demand returns.”

Key performance data for the full year includes:

• Total number of passengers decreased to 6.4 million, down 58.5% on the previous financial year. International passenger numbers (including transits) were 0.6 million while domestic passenger numbers were 5.8 million
• Operating EBITDAFI was down by 34.1% to $171.5 million (1)
• Reported profit after tax was up 139.4% to $464.2 million
• Underlying profit fell by $230.3 million to a loss of $41.8 million (1)
• Earnings per share was up 107.2% to 31.5 cents per share (principally as a result of investment property revaluations)
• Underlying profit per share fell to a loss of 2.8 cents per share (1)
• Revenue was down 50.4% to $281.1 million
• No final dividend will be paid

Chief Executive Adrian Littlewood said the 2021 financial year had been a year like no other for Auckland Airport, with the lowest number of international arrivals and departures since 1972.

“COVID-19 changed our business overnight bringing constant upheaval to almost every part of our operation. But throughout all the uncertainty of the past 18 months, our team’s determination to get the job done and go the extra mile for New Zealand has never faltered.

“I’m really proud of our team and their work to keep Kiwis connected to each other and the world and in recognition of their efforts we are giving $1500 in shares to each of our permanent employees – both as an acknowledgement of their hard work but also the critical role they will play as aviation recovers.”

Mr Littlewood said the recovery of domestic travel had continued in the 2021 financial year, with domestic passenger numbers reaching 5.8 million, 17% down on the previous year.

Overall, total domestic and international travel was down 58% in the 2021 financial year on the previous period, with 6.4 million passengers. International traffic remained low with 0.6 million international passengers including transits at Auckland Airport in the 12 months to 30 June 2021, down 93% year on year.
Auckland Airport’s investment property division continued to perform strongly in the 12 months to 30 June, with occupancy remaining at 99% at the end of the 2021 financial year despite the impact of COVID-19. Investment property annual rent roll increased 12.5% to $117 million and the portfolio value grew 29% to $2.6 billion.
Auckland Airport’s recovery strategy

In 2020 Auckland Airport outlined a three-stage plan through and beyond the pandemic: Respond, Recover, Accelerate.

Mr Littlewood said Auckland Airport had gone further to control costs and reset the business in the 2021 financial year to ensure it reflected the new operating environment, including:

• Scaling back operating activity resulting in a significant reduction in operating expenses
• Repaying the remaining $425 million US Private Placement (USPP) borrowings. This, in addition to closing out a number of interest rate and currency hedges, is expected to reduce Auckland Airport’s 2022 financial year interest expense by more than $10 million
• This month banks supported Auckland Airport’s request to renew nearly $700 million of debt facilities due to mature between January and April 2022. From January 2022, Auckland Airport has agreed that the interest cover covenant currently waived by lenders will convert from an EBIT-based measure to a new EBITDA-based measure.

Mr Littlewood said taking these steps had renewed Auckland Airport’s confidence in its ability to fund the planned infrastructure programme for the 2022 financial year and beyond.

“In the 2021 financial year we continued to support our business partners who are critical to the long-term success of our precinct, working with organisations to provide relief on a case-by-case basis, depending on the impact and type of business,” Mr Littlewood said.

For example, Auckland Airport provided $9.0 million in aircraft parking support and $3.9 million in rent reductions to off-terminal property tenants in the 12 months to 30 June, including precinct retailers whose businesses have been impacted by lower foot traffic. Much larger abatements were provided to our in-terminal retailers, and despite facing a tough operating environment, occupancy remains at 96% across both terminals. Investment property occupancy remains at 99%.

Mr Littlewood said another area of focus for the 2021 financial year was the development of a new sustainability strategy and goals. He said Auckland Airport had set a pathway to achieve Net Zero Carbon emissions by 2030, including transitioning away from natural gas in the terminal. It had also completed its first report in line with the recommendations of the Taskforce for Climate-related Financial Disclosures (TCFD).

“Auckland Airport was one of New Zealand’s early adopters of sustainability principles and we have made considerable progress in the areas of emissions reductions, energy savings, and waste management. Having largely met our previous objectives, we are lifting our sights with new sustainability targets, setting out how we will create value for our people and communities; contribute to the economy; and help tackle global challenges such as climate change.”
Infrastructure

Prior to the outbreak of COVID-19, Auckland Airport had begun delivering on over $2.0 billion of core aeronautical infrastructure projects with eight anchor projects in either construction or feasibility and design.

Mr Littlewood said despite the impact of the pandemic on the aviation sector, Auckland Airport’s capital investment in the 2021 financial year had continued, focusing on the upgrade and renewal of core infrastructure and to take advantage of the low traffic environment on the airfield and roads to minimise disruption.

This included:
• $26 million invested in runway and wider airfield pavement replacements and upgrades
• $69 million in roading upgrades and construction of a mass transit system, including a $21 million contribution towards improvements along State Highway 20B which added high-occupancy vehicle lanes, cycling and walking paths, as well as road safety improvements to the important Auckland Airport-Puhunui-Britomart public transport connection.

Mr Littlewood said Auckland Airport had also carried out significant work to reset and reprioritise its infrastructure development plan.

“We have used this time to create a refreshed infrastructure development pathway that is realistic, prioritises the right projects, and is in line with aviation’s recovery.
“Our priority development is construction of a new domestic hub to be merged into the international terminal at the eastern end of the building, providing a much-improved customer experience for travellers connecting between major New Zealand destinations and our global air connections. For Auckland-based travellers, a new transport hub with upgraded pedestrian, transport links, and car parking will offer a smooth connection into the terminal building.

The first $30 million stage of the $1 billion-plus domestic hub is expected to get underway in early 2022, focusing on demolition works to clear the footprint of building. Mr Littlewood said the next major phase of development would be determined by a range of factors including the speed of aviation’s recovery.

“Kiwis have told us they want an improved domestic experience and we are getting on with it with an infrastructure development pathway that will be strongly matched to aviation’s recovery and is supported by Air New Zealand and the Board of Airline Representatives of New Zealand (BARNZ).

“Along with the domestic hub we are continuing to progress three more of our anchor projects: our $160 million-plus programme of transport upgrades; a $200 million-plus transport hub; and upgrades to the existing domestic terminal. Anchor projects that remain on hold are the international airfield and taxiway expansion; new cargo precinct; new international arrivals area and the second runway.”

Retail business

Today Auckland Airport announced plans to strengthen the precinct shopping experience further with the development of a 23,000m2-plus outlet centre, generating more than 500 new jobs across more than 100 stores and food outlets. (see accompanying media release) Key highlights include:
• Outlet centre to be located on the north-eastern edge of the precinct offering sought-after premium and lifestyle brands to consumers at often heavily discounted prices
• Sustainable design principles to underpin development with Auckland Airport targeting Green Star design and build
• Careful precinct-wide planning and ongoing investment in transport will continue to prioritise terminal-bound traffic and enable public transport
• Major phases of development to be influenced by the strength of the retail market and the recovery of aviation

Looking ahead

Auckland Airport continues to adopt more conservative planning assumptions than those of the International Air Travel Association (IATA), which is forecasting global travel to fully recover and exceed pre-pandemic levels in 2023. Mr Littlewood said a full recovery may take longer.

“Our financial performance is strongly linked to passenger volumes, so our recovery will be greatly influenced by the return of domestic and international travel and changes in border settings. There are encouraging signs with vaccination programmes now ramping up here and around the world but we expect to see further volatility in domestic and international travel in the short term, with the global aviation market gradually rebuilding in 2022.”

Due to uncertainty in the market, Mr Littlewood said Auckland Airport was currently unable to provide underlying earnings guidance for the 2022 financial year.
Capital works will continue to advance existing transport infrastructure projects and the delivery of core maintenance upgrades, with capital investment expected to be between $250 million and $300 million in the 2022 financial year.

Mr Littlewood said Auckland Airport would remain focused on the recovery of the tourism sector by supporting the Government in safely reopening the border, taking a leading role in a public/private sector work programme to develop options for future border settings.

“With New Zealand’s path to recovery ahead of us it is important that Auckland Airport keeps delivering for our country. From safety protocols in the terminals to upgrading our infrastructure, this is the work that will ensure we deliver the strongest long-term prospects for New Zealand while helping to return our business to profitable and sustainable growth.”

ENDS
For further information, please contact:

[peat]

• Reported profit after tax was up 139.4% to $464.2 million

• Earnings per share was up 107.2% to 31.5 cents per share (principally as a result of investment property revaluations)


Property saves the day.

[Master98]

Property saves the day.
AIA has huge landbank and property, that's why sp hold very well.

[peat]

whats going on here!!! ?

[kiora]

Spillover from Sydney airport T/O most likely

[Maxtrade]

Seems odd AIA is rallying so much over past few days when things are not looking any better for travel at this time. Maybe a rally before another solid drop again on next poor Delta update. NZ still in infantry stages with the virus. Once things start opening up more and we see a real case surge AIA and AIR will likely be hit hard again then. Doesn't really make much sense that AIA has prematurely pushed back up to 7.75

Thoughts?

[winner69]

Seems odd AIA is rallying so much over past few days when things are not looking any better for travel at this time. Maybe a rally before another solid drop again on next poor Delta update. NZ still in infantry stages with the virus. Once things start opening up more and we see a real case surge AIA and AIR will likely be hit hard again then. Doesn't really make much sense that AIA has prematurely pushed back up to 7.75

Thoughts?

Being a property company counts

[macduffy]

Being a property company counts

See also post #1656.

[mikelee]

no reason for AIA to charge airlines and passengers sky high prices when its property holdings alone can sustain the business then

[Waltzing]

"(principally as a result of investment property revaluations)"

a better KIP.

[peat]

worked as a good hedge on AIR short. in fact a lot better so far haha

[Maxtrade]

Has there been some news which would explain why AIA has been rallying strongly today?

[macduffy]

Has there been some news which would explain why AIA has been rallying strongly today?

Probably just slowly growing confidence that air travel is going to resume - some day!

[Maxtrade]

Probably just slowly growing confidence that air travel is going to resume - some day!

When boarders open, subsequently NZ will first be exposed to seeing the true effects of Covid. We are 6-12 months behind the rest of the world in this aspect. On one hand we might expect tourism to flow. On the other we will start seeing 1000'2 more cases and it won't take long at all before our limited ICU beds, doctors and nursing staff, ventilators etc are at max capacity. In turn we will start to see what it really means to have Covid. Up until now we have been shielded. Even if we do reach 90% vaccination rates we will still likely see these events play out seeing we are not as well equiped in NZ compared to the medical capacity in the states for example.

So although boarders might be open once we start seeing the health system get overwhelmed it may have a negative affect on tourism due to the situation we will be in. Which also may result in lockdowns being re-established if our hospitals aren't coping.

Would anyone agree it might be premature to see AIR and AIA share prices heading north prematurely here. It is good to be positive and optimistic, but at the same time we have a lot of reality to deal with ahead. NZ is small, limited health system capacity, this is what is different and may still affect our tourism market for longer than some may realise.

[BlackPeter]

When boarders open, subsequently NZ will first be exposed to seeing the true effects of Covid. We are 6-12 months behind the rest of the world in this aspect. On one hand we might expect tourism to flow. On the other we will start seeing 1000'2 more cases and it won't take long at all before our limited ICU beds, doctors and nursing staff, ventilators etc are at max capacity. In turn we will start to see what it really means to have Covid. Up until now we have been shielded. Even if we do reach 90% vaccination rates we will still likely see these events play out seeing we are not as well equiped in NZ compared to the medical capacity in the states for example.

So although boarders might be open once we start seeing the health system get overwhelmed it may have a negative affect on tourism due to the situation we will be in. Which also may result in lockdowns being re-established if our hospitals aren't coping.

Would anyone agree it might be premature to see AIR and AIA share prices heading north prematurely here. It is good to be positive and optimistic, but at the same time we have a lot of reality to deal with ahead. NZ is small, limited health system capacity, this is what is different and may still affect our tourism market for longer than some may realise.

Sure - you paint a quite probable scenario.

I see however a couple of issues in your argumentation chain:

1)
Markets are not rational. They don't behave like you (or anybody else) might think makes sense, they follow the majority view of whoever shapes the market at a time (i.e. the people with goods and the people with money). Many people out there (probably including the both of us) are seen by somebody else as plain awkward and crazy ... hey, there are a lot of crazy people around, aren't they?

Markets typically behave like flocks of horses ... they poo onto their food, they poo into their water and when there is a loud noise they just start running, no matter whether this is a good idea or not.

2)
Nobody can predict the future, particularly in a situation which was not around before.

While the scenario you are painting does have in my view a reasonable likelihood to occur - we don't really know for sure, do we?

Was it Merck recently presenting a quite cheap cure for Covid (https://www.cnbc.com/2021/10/01/merck-to-seek-emergency-authorization-for-oral-covid-19-treatment.html)? Maybe this is fully tested and approved next year? As well ... so far all previous pandemic's used to disappeared after some time again ... even the Spanish flu was after something like 2 to 3 years not a problem anymore (and this without vaccinations and just with Aspirin to "cure"). Of course, we don't know how Covid plays out, but maybe being optimistic is not more unrealistic than being pessimistic.

3)
The value of companies like AIA and AIR is measured in terms of long term earnings potential ... and while I still have my concerns related to AIR (too much debt), does it really make for AIA's DCF a big difference whether they have for the next 2 decades 20 or just 19 good years?

So - I think one can make a case (at least for AIA) for rising prices and while I admit that I find them to dear, this was almost always true.

Anyway - no point in arguing with the markets or trying to convince everybody from your point of view. If you think markets are wrong (and you well might be right, they often are), than you should short both companies ... just remember - never invest more money into shorts than you are happy to lose ... they say markets can behave irrational longer than you can stay solvent .... and boy, are they right :).

[Maxtrade]

Sure - you paint a quite probable scenario.

I see however a couple of issues in your argumentation chain:

1)
Markets are not rational. They don't behave like you (or anybody else) might think makes sense, they follow the majority view of whoever shapes the market at a time (i.e. the people with goods and the people with money). Many people out there (probably including the both of us) are seen by somebody else as plain awkward and crazy ... hey, there are a lot of crazy people around, aren't they?

Markets typically behave like flocks of horses ... they poo onto their food, they poo into their water and when there is a loud noise they just start running, no matter whether this is a good idea or not.

2)
Nobody can predict the future, particularly in a situation which was not around before.

While the scenario you are painting does have in my view a reasonable likelihood to occur - we don't really know for sure, do we?

Was it Merck recently presenting a quite cheap cure for Covid (https://www.cnbc.com/2021/10/01/merck-to-seek-emergency-authorization-for-oral-covid-19-treatment.html)? Maybe this is fully tested and approved next year? As well ... so far all previous pandemic's used to disappeared after some time again ... even the Spanish flu was after something like 2 to 3 years not a problem anymore (and this without vaccinations and just with Aspirin to "cure"). Of course, we don't know how Covid plays out, but maybe being optimistic is not more unrealistic than being pessimistic.

3)
The value of companies like AIA and AIR is measured in terms of long term earnings potential ... and while I still have my concerns related to AIR (too much debt), does it really make for AIA's DCF a big difference whether they have for the next 2 decades 20 or just 19 good years?

So - I think one can make a case (at least for AIA) for rising prices and while I admit that I find them to dear, this was almost always true.

Anyway - no point in arguing with the markets or trying to convince everybody from your point of view. If you think markets are wrong (and you well might be right, they often are), than you should short both companies ... just remember - never invest more money into shorts than you are happy to lose ... they say markets can behave irrational longer than you can stay solvent .... and boy, are they right :).

Thanks BP. Yeah markets can have a mind of their own. Still quite likely being a bit too optimistic prematurely with the head winds in store for a country that hasn't even really yet experienced the influx of the inevitable Covid. I agree AIR debt should surely be scaring anyone away from buying in at where the SP currently is. Could be a rude awakening for those investors once debt is realised early next year and Cap Raise commences, diluting shareholders further. Government will buy them out of debt basically, but at an SP well below where it currently is. Cap Raise sub $1 likely. Then the proceeds of the Cap Raise AIR will need to use to pay their debt back off to the Government. Win win for the government, not the best for shareholders having bought in 1.5 and higher. Seems irrational the SP is heading north 1.7. But like you say markets might just be following a heard to a dry trough that leaves them running to the next watering hole. Hope not but we will see.

AIA should really be placed where it was recently sitting low $7's. With a lot of the big airlines limiting their NZ flights to recoup losses even when boarders reopen in 2022 will more than likely be 2023 by the sounds of it before AIA sees any real traffic of substance. SP should hover low $7's until we see how it pans out come start of 2023. Rallying top to $8 now seeing a bit too optimistic and likely see a drop back to $7 with any bit of negative news. Which will be a definite when NZ starts experiencing 1000's of cases, which is 100% inevitable. Unless we live with Auckland in perpetual lockdown due to inadequate health services. Either way is sadly not ideal but a reality. Definitely need to be a risk taker buying in AIA at these current levels with so much risk still down the pipeline. But good to see the optimism. Hope is a good thing and best of luck to holders. Personally will wait for cases to start really being seen in NZ which will come hand in hand with AIA and AIR shares spiralling back down again off the back of this recent optimistic rally. Australia isn't any better.

[Animeart]

Will case numbers matter anymore once we hit the 90% target? Look at how UK & US are opening up already, despite having high number of cases still. Not to mention counties moving ahead with 3rd booster shot next year. I certainly don't think AIA is worth $8, only about $1 down from its pre-pandemic. At the start of 2020 it dropped to as low as $4.xx I think. I'd personally be more comfortable buying in at $5-$6 unless the Outlook for border opening changes significantly for the better.

[iceman]

Covid 19 Delta outbreak: Risk NZ will fall off the radar for airlines
https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12476919

[Maxtrade]

Covid 19 Delta outbreak: Risk NZ will fall off the radar for airlines
https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12476919

Yes some of the bigger US and EU airlines won't even be entertaining resuming NZ flights until possibly 2nd or 3rd quarter 2023. A lot of hurt still yet to come for AIA and AIR. Good to see the optimists though with SP taking a short rally recently. But in all likelihood will see the SP drop back down again soon enough. I think FOMO with investors seeing a short rally and jumping on board, but seeing volumes tapper back and resistance levels hit on both now will likely see short term profits taken loosing momentum and in turn a reversal on the SP trend to lower lows than recent for both. Especially when there is a little bit of negative news when case numbers start spreading and rise considerably will likely be the reversal catalyst. It's not a matter of if this happens, it's when. Unfortunately for us all Covid hasn't even opened the door really for us here in NZ yet. When we start seeing 100's of cases a day take note of what SP in AIR and AIA will downtrend then (if not sooner).

[see weed]

Did I read something in the last 24hrs about Sydney Int. Airport was making a $25b t/o bid for AIA or did I dream it:confused:?

[Sideshow Bob]

Did I read something in the last 24hrs about Sydney Int. Airport was making a $25b t/o bid for AIA or did I dream it:confused:?

Nah Sydney Airport is being taken over.

Sydney Airport board agrees to $23.6bn buyout deal with international consortium - ABC News (https://www.abc.net.au/news/2021-11-08/sydney-airport-agrees-to-investment-fund-buyout-deal/100602082)

Meanwhile AIA are raising money through a bond offer ($100m/5 Years) but no public pool - all going to lead managers BNZ/Westpac clients, and other institutions.

[mikelee]

Still to be approved by our equivalent of Commerce Commission I think.

[smartbomb]

No they have already got clearance. Done deal.

[dreamcatcher]

Am I correct in thinking Aussies are building a second airport in Sydney ....

[winner69]

Talk of an impending capital raise --- wonder what the terms will be if one does happen

[mikelee]

I'm sure the board would like to hear the new CEO's view, given that Air NZ had just done a lot of work in preparation for it, before it was pushed back again. :cool:

[Recaster]

Latest Accounts a bit of a mess with cloud computing capitalisation issues leading to restatements and dissimilar periods for some statements.

My takes:

Latest Accounts 6 months to 31 December, 2021

https://recastinvestor.substack.com/p/update-auckland-international-airport

Previous Accounts Year to 30 June, 2021

https://recastinvestor.substack.com/p/basic-recast-analysis-auckland-international

Feedback much appreciated. Cheers.

[Sideshow Bob]

AIA - FY22 Annual Results - NZX, New Zealand’s Exchange (https://www.nzx.com/announcements/397134)

FY22 results: Auckland Airport sets its sights on the future as rebounding demand for travel fuels aviation’s recovery
Auckland Airport today announced its financial results for the 12 months to 30 June 2022, including incurring its second ever underlying loss.

Auckland Airport Chair Patrick Strange said: “The 2022 financial year has been a year of change and revival for Auckland Airport as we managed through the Covid-19 lockdowns, the gradual lifting of border restrictions and the restart of international travel.

“While the global aviation industry continues to experience ongoing operational challenges there is positive momentum with solid demand for travel to and from New Zealand supporting the recovery. We are in a global race to attract back visitors and international airline routes and services and New Zealand needs to work hard to ensure their return.
“We are now progressing our capital plan to build a stronger Auckland Airport, delivering on a world-class travel experience for travellers and fuelling our future success. As we look ahead, I offer my thanks to our employees who have continued to work through the challenges of the 2022 financial year to serve our customers, keep New Zealand connected and maintain the safe and secure operation of the airport.”

Key performance data for the 12 months to 30 June 2022:
• Total number of passengers decreased to 5.6 million, down 13%
• Domestic passenger numbers decreased 27% to 4.3 million, and international passenger numbers (including transits) increased 123% to 1.3 million
• Revenue was up 7% to $300.3 million
• Operating EBITDAFI was down 16% to $144.5 million
• Reported profit after tax was down 59% to $191.6 million,
• Earnings per share was down 59% to 13.0 cents
• Net underlying loss after tax of $11.6 million
• Net underlying loss per share of 0.8 cents1
• No final dividend will be paid

Chief Executive Carrie Hurihanganui said that although Auckland Airport’s results continued to reflect the impact of the pandemic and the challenging operating conditions of the 2022 financial year, the reopening of the border to Australia in April had marked a turning point in the organisation’s recovery.

“After two years of disruption, careful cost management and perseverance from the team at Auckland Airport our recovery is now well underway,” said Ms Hurihanganui, who became Chief Executive in February.

“As aviation rebounds there continues to be some uncertainty about the shape of recovery ahead with global operational challenges, such as labour shortages, currently constraining the system’s capacity. However, Auckland Airport continues to take a long-term view and we remain optimistic about the future with the strong global appetite that exists for travel alongside Auckland’s position as a key aviation hub in the South Pacific.”
Overall, there were 5.6 million international and domestic passengers at Auckland Airport in the 2022 financial year, down 13% on the 2021 financial year. Domestic passenger numbers were 27% down to 4.3 million while international passenger numbers (including transits) rose 123% to 1.3 million.
The gradual reopening of the border between February and June saw airlines like LATAM restore services, with 17 airlines flying to 28 destinations at Auckland Airport by 30 June 2022, up from 12 airlines and 21 destinations during the worst of the pandemic.

“International travel to and from New Zealand has made a spirited comeback in recent months as border restrictions have fallen away. With key parts of our network now reconnected and capacity returning, our sights are firmly set on the future as we progress key infrastructure projects and look to future improvements in transport, technology and operations.”

Auckland Airport’s investment property division continued to perform strongly, with the industrial property market proving resilient in the 2022 financial year. Investment property rent roll is now $127.5 million (up 9% year on year) and the investment portfolio is now valued at $2.9 billion, up 10% year on year.
In the 2022 financial year, Auckland Airport continued to focus on climate change, developing a clear pathway to reduce scope 1 and 2 emissions to reach Net Zero by 2030.
“We are on a mission to drive down our emissions to tackle climate change. Alongside this we are working with airlines to support the decarbonisation of the wider aviation sector, ensuring the right ground infrastructure is in place to enable the adoption of future aircraft technologies and fuels as they become widely available,” said Ms Hurihanganui.

Infrastructure: Airline consultation continues

With fewer planes in the air in the 12 months to 30 June 2022, Auckland Airport focused on core maintenance projects and infrastructure upgrades that would support the recovery: airfield maintenance, pavement renewal, roading development and jet fuel line upgrades, with $98.7 million invested in these assets during the period.

With the gradual reopening of the border in the second half of the year, Auckland Airport focused on a range of other capital expenditure projects to take advantage of the low traffic environment, including progressing $82.4 million in works to enable development of a new purpose-built domestic facility to be merged into the eastern end of the existing international terminal. The development pathway was approved by the Auckland Airport Board in August 2021.

Ms Hurihanganui said Auckland Airport is working to ensure “the best possible outcome for the next 20-plus years of travel at Auckland Airport, with an initial focus on domestic travel”.
“As we look ahead, we are entering a period of investment to transform Auckland Airport into a world-class travel experience with seamless customer journeys and improvements to domestic travel as our first priorities,” said Ms Hurihanganui.

“When the current domestic terminal opened in the 1960s it was the dawn of the jet age. It’s now more than half a century old and while we have continued to reinvest in the facility to support growth in domestic travel and the needs of travellers, this infrastructure is now nearing the end of its life. It’s vitally important for Auckland and New Zealand’s economy that we invest for the future, creating a domestic travel experience Kiwis can be proud of.”
Ms Hurihanganui said Auckland Airport is currently in consultation with airlines regarding the design of the new $1 billion-plus combined terminal, to be delivered in stages in line with aviation’s recovery. Airlines currently pay some of the lowest domestic charges in Australasia to operate at Auckland Airport due to the age of the domestic terminal and the write down of assets.

“Ageing terminals all over the world are being modernised and rebuilt following 50 years of growth in air travel. We know from overseas experience that is both a huge challenge and an incredible opportunity for us.
“Auckland Airport’s asset investment creates opportunities for airlines to provide a quality experience for their customers and increases operational efficiency, with expanded terminal capacity also allowing airlines to grow and develop their aircraft fleet and networks.”
Ms Hurihanganui said as investments were made in new assets, the prices that airlines pay will have to increase over time.

“We look forward to working with our airline partners as we consult on the next stages of development for the combined terminal.”
Roading and commercial projects

In the 2022 financial year, Auckland Airport continued to focus on key road transport projects, completing a $160 million-plus upgrade of the core roading network and announcing the development of a $300 million world-class transport hub to be built at the front door of the international terminal. The project will transform how travellers arrive at and depart from the main airport terminal, while paving the way for any future mass rapid transit to deliver passengers direct to the airport terminal precinct. The project is also the critical initial step in enabling delivery of the future combined terminal.
“We are incredibly excited about this project as it will be another step towards creating a high-quality customer experience that equals some of the best airports in the world,” said Ms Hurihanganui.
Auckland Airport announced the development of Mānawa Bay to the east of the precinct. This is a $200 million-plus premium outlet shopping destination that will offer sought-after premium fashion, athleisure, lifestyle and homeware brands as well as food and dining options. With earthworks on the 150,000m2 site and the building platform now complete, leasing is now underway for what will be New Zealand’s first ever premium purpose-built outlet centre.

Support for the community and our airport partners

Auckland Airport’s long-standing connections with the South Auckland community continued during the 2022 financial year.
“We were proud to offer our buses to be used as mobile health clinics delivering vaccinations direct into the South Auckland community, while converting our Park & Ride facility into a drive-through vaccination centre,” said Ms Hurihanganui.

Known as “Park & Vax” it ultimately became one of Auckland’s most successful drive-through vaccination centres, with health workers delivering 155,000 vaccines between September 2021 and January 2022.

Auckland Airport also continued to support tenants impacted by the pandemic, providing $173 million in rent reductions to tenants in the international terminal in the 2022 financial year, making a total contribution of $358 million in retail rent abatements over the past two financial years. Retailer lease occupancy across both terminals was 94% as at 30 June 2022.

Support for airlines included more than $8 million in relief for aircraft parking across the 2022 financial year as well as the introduction (in January 2022) of a price freeze to aeronautical charges for the 2023 financial year in response to continued uncertainty in the aviation market (FY23 is the first year of “Price Setting Event 4” which covers the period from FY22/23 to FY27/28).

“This has helped to support airline partners during the early phase of the Covid-19 recovery and was something the vast majority of airlines operating at Auckland Airport supported.”
Outlook
Auckland Airport continues to adopt more conversative planning assumptions than the International Air Travel Association (IATA), which predicted in its most recent report that the global industry would recover to pre-pandemic levels in the 2024 calendar year, with the Asia-Pacific region to follow at a later stage.

“While we are hopeful of a strong recovery over the next 18 months, our outlook remains conservative.”
Reflecting this, Auckland Airport is providing guidance of underlying profit after tax of between $50 million and $100 million for the 2023 financial year and capital expenditure of between $600 million and $700 million, reflecting a number of roading, airfield, investment property projects alongside progressing the design and enabling works for the combined domestic and international terminal ($130 million). Auckland Airport is currently consulting with substantial airline customers for Price Setting Event 4, with a decision on aeronautical prices scheduled to be made following this consultation in June 2023. The capital investment plan is considered within the consultation on aeronautical prices and may be subject to change as consultation with airlines is undertaken.
“After what has been another challenging year, I am thankful to our investors for their continued support and to our capable and passionate employees who make journeys possible at Auckland Airport. To our customers, thank you for your patience and support as we have ramped up activities alongside airlines and our aviation partners,” said Ms Hurihanganui.
ENDS

[Marilyn Munroe]

There are developments which may impact on part owned Queenstown Airport.

https://i.stuff.co.nz/national/300667637/tarras-project-fog-partially-lifts-on-ambitious-christchurch-airport-plan

Opinion: Christchurch City Holdings brought land for the Tarras airport project for two reasons.

The first is they are irritated ZQN airport has undermined CHC airport's monopoly as tourist gateway to the South Island. Tomorrow there will be four Trans Tasman departures from CHC compared to seven from ZQN.

The second is to sow FUD(1) onto any expansion plans by ZQN.

A prediction: Tarras airport will not be built for a long long time. There is no economic justification for a second international airport in the Central Otago Southern Lakes region.

Boop boop de do
Marilyn

(1) Fear uncertainty doubt.

PS. If the airfield is built can the Aviation Security Service head office be transfered there. This will increase the number of bunnies in the small roadside settlement of Tarras

[Recaster]

Bit of a look at this company's accounts:

https://recastinvestor.substack.com/p/update-auckland-international-airport-aee

[Jim]

Trading halt ?? Wayne Brown selling down 18% stake ?

[Baa_Baa]

Trading halt ?? Wayne Brown selling down 18% stake ?

"Brown told the council today that its shares in Auckland International Airport would be reducing in value soon (https://www.nzherald.co.nz/nz/wayne-brown-says-councils-auckland-airport-shares-will-reduce-as-company-plans-fundraising-for-new-terminal/3GLGMA63XFA5BIAQSA26BAI5RA/).

He said the airport company planned to seek a capital injection to fund a new domestic terminal.

Council currently owns 18 per cent of the airport company but would not be participating in the airport’s capital expansion, so those shares would reduce in value to about 11 per cent."

[bigbruce]

Wayne perhaps with knowledge of price sensitive information not known in the wider market.?
AIA will be raising funds for new build, cough,cough I am only speculating.

[mwri]

https://www.nzx.com/announcements/404153 aia to use loan to finance building. Brown knows something we dont, lying or dumb?

[Bjauck]

Brown should realise that as he is now the Auckland Mayor, when he shoots from the hip everybody will think he has access to correct information, and it is not idle speculation.

[Sideshow Bob]

Not an equity raise

https://www.nzx.com/announcements/404153

15/12/2022, 12:56 pm MKTUPDTEMarket Release | 15 December 2022
Auckland Airport makes announcement to the market
Auckland Airport has no plans to carry out an equity raise and we have made no announcements to the market in this regard.
We continue to consult with airlines about our future infrastructure programme, which includes our priority project – the creation of a combined domestic and international terminal as part of an expansion to the existing international terminal.

Auckland Airport’s key credit metrics that underpin our A- credit rating are recovering very strongly. On 20 October 2022 S&P reaffirmed Auckland Airport’s long term credit rating as A- with a stable outlook. Auckland Airport is planning to fund the new domestic terminal with borrowings.
ENDS

[Lola]

Brown should realise that as he is now the Auckland Mayor, when he shoots from the hip everybody will think he has access to correct information, and it is not idle speculation.

Displays a bit of naivety wouldn't you say? Of just arrogant and not as commercially smart as he says he is?

[mikelee]

the new mayor is not trust worthy I reckon, brag about not increasing rates but ended up increasing it anyway

[777]

the new mayor is not trust worthy I reckon, brag about not increasing rates but ended up increasing it anyway

Which no doubt shows how bad the finances must be.

[Baa_Baa]

He really put his foot into his mouth today. That was a supremely poor announcement, wrong, ill informed or advised, and makes him look like a complete dickhead. Back peddle coming, it will be hard to dig out of this hole, and so soon into the illuminati.

[Bjauck]

….and the Liz Truss Public Office bronze level award for getting it so wrong goes to….

[Sideshow Bob]

Positive news for AIA, many would have come from Auckland.

https://businessdesk.co.nz/article/tourism/returning-tourists-push-queenstown-back-to-pre-covid-levels?utm_source=7am+Headlines+from+BusinessDesk&utm_campaign=b744aebda5-7am+Headlines&utm_medium=email&utm_term=0_617c2ef34a-b744aebda5-402467359

The revival of New Zealand’s tourism industry (https://businessdesk.us20.list-manage.com/track/click?u=786ac0b2dc4f2240875208882&id=1a251450da&e=3b6f9185d3) helped keep Queenstown airport’s international passenger numbers above pre-covid levels, while national carrier Air NZ is boosting its flights to China.
Auckland International Airport, which owns a quarter of Queenstown’s gateway, said the resort town’s international passenger movements were 126% of pre-covid levels at 75,526, while 150,302 domestic travellers were 94% of December 2018 levels.

[Sideshow Bob]

https://www.nzx.com/announcements/407181

Key performance data for the six months to 31 December 2022:
• Total number of passengers 7.6 million
• Domestic passengers of 4.1 million, and international passengers (including transits) of 3.5 million
• Revenue of $288 million
• Operating EBITDAFI of $189 million
• Reported profit after tax of $5 million, impacted by the $94 million non-cash investment property valuation decrease
• Earnings per share of 0.33 cents
• Net underlying profit after tax of $68 million(1)
• Net underlying profit per share of 4.62 cents
• No interim dividend will be paid

[Sideshow Bob]

Spending billions.....

https://www.nzx.com/announcements/408505

Building the gateway New Zealand needs: Multi-billion-dollar investment in future of travel at Auckland Airport

• Replacement of 57-year-old domestic terminal confirmed
• Single biggest redevelopment since the airport opened in 1966
• Domestic and international travel to be housed under one roof
• Resilient and built to meet climate change goals and to create a more sustainable airport
• 2,000 additional jobs created at the height of construction

Auckland Airport is underway with its biggest redevelopment since the airport opened in 1966 with a brand-new domestic terminal to be fully integrated into the international terminal.


No divvies for the council for a bit....??

[Nor]

"built to meet climate change goals". Goals? How high is the runway above sea level. Half a metre?

[777]

"built to meet climate change goals". Goals? How high is the runway above sea level. Half a metre?


7 metres.....

[clip]

More likely the terminal itself and/or drainage so it doesn't flood again when we have another big storm

[Ricky-bobby]

How much for an aircraft carrier?… extra runway and we can also run a bit defensive if needed😂

[Jaa]

A sustainable airport built to meet climate change goals is ridiculous double speak isn't it?

Cost blowout: Airport terminal project cost doubles (https://businessdesk.co.nz/article/infrastructure/cost-blowout-airport-terminal-project-cost-doubles)

[BlackPeter]

A sustainable airport built to meet climate change goals is ridiculous double speak isn't it?

Cost blowout: Airport terminal project cost doubles (https://businessdesk.co.nz/article/infrastructure/cost-blowout-airport-terminal-project-cost-doubles)

Not necessarily. They well might prepare for electric and (green) hydrogen powered planes ...

[Southern Lad]

The announcement notes that regional turboprop flights are to remain at the existing domestic terminal for the time being, with further discussions with airlines to occur. So this means if I’m transferring from a Q300 flight from Kerikeri to a A320 flight to Wellington I’m going to be faced with a 10 minute walk between terminals? Have I got this right- haven’t seen any media commentary on this aspect?

[Nor]

Yes but everyone else will take the bus.

[nztx]

Wasn't the CEO of AIA on the board of Port Of Napier before departing for a loftier role ? ;)

[nztx]

What happened all the planning for upgrading of their facilities over the 50+ years ?

Is this another great mystery no do, too much sleep, not enough awake while things
were stuck in the muck as an obscure satellite of some regional authority and/or central
Government where attention & spending some dough was completely out of the question ? ;)

[Fortunecookie]

I thought $2.2billion(NZD) for a new domestic terminal was expensive.

So I asked google. Roughly on par with San Diego when taking into the number of gates, todays dollars and currency conversion. However for context, it is one of ten most expensive airport projects that entered the execution phase in 2021. Note no project is the same.

"San Diego Airport Upgrade, US: $2.6bn
The San Diego International Airport is planning a major airport upgrade. A new terminal with 19 gates will be constructed and the old terminal will then be demolished at the airport in California, US."

https://www.airport-technology.com/features/the-most-expensive-airport-projects-in-2021/

[fastbike]

Not necessarily. They well might prepare for electric and (green) hydrogen powered planes ...

We've been waiting since the 1980s. They will not require a huge white elephant airport, if they are even technically feasible.
https://www.carbonnews.co.nz/story.asp?storyID=27206

The stock is a sell now.

[Paint it Black]

We've been waiting since the 1980s. They will not require a huge white elephant airport, if they are even technically feasible.
https://www.carbonnews.co.nz/story.asp?storyID=27206

The stock is a sell now.

I agree as well if only for profit taking. SP has had a steady climb recently and now close to pre covid. The negative impacts of Auckland Council selling 10% if not all their 16% holding to reduce the $295m budget hole plus extra CRL and Gabrielle costs plus the recent blow out cost projection for the terminal plus rising interest costs must surely have an impact soon?

[Fortunecookie]

I had a thought the other day. Apparently Hamilton along with Tauranga shows one one of the highest population growth for the next couple of decades. What if Hamilton decided to setup a proper international airport. They would cater to Waikato, Tauranga and the middle of the north island. With AIAs $2bill upgrade, if that was to eventuate wouldn't they be left in a pickle.

[Marilyn Munroe]

Speculation about Hamilton Airport emerging as a competitor to AIA.

Not a bad idea. A single isle jet optimized airport for ditch crossing and feeding onward flights would have appeal to those residing in the area.

What would make it even more appealing would be a commutator rail service from the Isthmus making it a viable alternative to AIA. The overlords of HLZ should land bank some land beside the rail track at Matangi for a transfer station.

Boop boop de do
Marilyn

[Fortunecookie]

Not a bad idea. A single isle jet optimized airport for ditch crossing and feeding onward flights would have appeal to those residing in the area.

What would make it even more appealing would be a commutator rail service from the Isthmus making it a viable alternative to AIA. The overlords of HLZ should land bank some land beside the rail track at Matangi for a transfer station.

Boop boop de do
Marilyn


You can definitely get some Auckland flyers if there was a viable rail connection.

[SailorRob]

What the hell is the story with this company?

I just glanced over 10 years of financials before looking at the price and I figured I could understand someone paying 3 billion for this (I wouldn't), maybe $2 a share...

12.6 Billion WTF.

Debt and share count going up...

Is this some play on oh NZ will be a bigger company in future etc?

How the hell you gonna make money?

Will it be through EPS growth? If so, will that be margins, revenue or share count reducing?

Or will it be through Multiple expansion?

Or dividends?

For them to grow what capital is required and from where?

Am I on Candid camera?

I guess it's the earnings growth up until 2018 that people see continuing at some point.

[BlackPeter]

What the hell is the story with this company?

I just glanced over 10 years of financials before looking at the price and I figured I could understand someone paying 3 billion for this (I wouldn't), maybe $2 a share...

12.6 Billion WTF.

Debt and share count going up...

Is this some play on oh NZ will be a bigger company in future etc?

How the hell you gonna make money?

Will it be through EPS growth? If so, will that be margins, revenue or share count reducing?

Or will it be through Multiple expansion?

Or dividends?

For them to grow what capital is required and from where?

Am I on Candid camera?

I guess it's the earnings growth up until 2018 that people see continuing at some point.

Good question - I guess AIA is great evidence that the markets are anything but rational.

I suppose punters are blinded by the dollars the company could make with property development (they hold quite a lot of potentially valuable land) and when they see an exponential curve they always think this is a forecast of the future air passenger development.

Obviously - all assuming that Auckland continues bloating, the sea levels wont rise too fast, property values keep ballooning, air traffic keeps rising and no other airport in the upper North Island is emerging (Hamilton?). What could possibly go wrong?

Personally I prefer companies actually making a material amount of money, relative to their capitalisation, but hey - each to their own.

[SailorRob]

Good question - I guess AIA is great evidence that the markets are anything but rational.

I suppose punters are blinded by the dollars the company could make with property development (they hold quite a lot of potentially valuable land) and when they see an exponential curve they always think this is a forecast of the future air passenger development.

Obviously - all assuming that Auckland continues bloating, the sea levels wont rise too fast, property values keep ballooning, air traffic keeps rising and no other airport in the upper North Island is emerging (Hamilton?). What could possibly go wrong?

Personally I prefer companies actually making a material amount of money, relative to their capitalisation, but hey - each to their own.

Well said.

[Rawz]

KFL- why do we invest in AIA:

AIA is well-positioned to benefit from New Zealand’s positive long-term tourism outlook. With aspirations for 40 million total passengers per annum by 2044, combined with a strengthening consumer business and leveraging its land bank, AIA’s non-aeronautical operations are expected to continue to deliver attractive returns on invested capital into the future.

[Fortunecookie]

KFL- why do we invest in AIA:

AIA is well-positioned to benefit from New Zealand’s positive long-term tourism outlook. With aspirations for 40 million total passengers per annum by 2044, combined with a strengthening consumer business and leveraging its land bank, AIA’s non-aeronautical operations are expected to continue to deliver attractive returns on invested capital into the future.




It's basically a REIT with a runaway attached to it.

[Rawz]

Prior to covid AIA book value per share doubled in 5 years. 2014 to 2019....

[Fortunecookie]

Prior to covid AIA book value per share doubled in 5 years. 2014 to 2019....

I don't doubt that and I think it's great. But as a shareholder how do you extract value.

Edit: I just checked. Since inception just over 9% compound return, which is not bad. However not so great the last 5 years. But with the big upgrade, have they under capex previously.

[Rawz]

Last 5 years probably the worst they’ll see until the next pandemic? Just having a random guess but would they be every 100 years or so?

[Fortunecookie]

Last 5 years probably the worst they’ll see until the next pandemic? Just having a random guess but would they be every 100 years or so?

Difficult to say. Too many variables during that timeframe. Apparently the US military have got UFO technology and backwards engineering it as we speak. The US, China and N Korea will come together and use the alien technology to fight the threat of AI. Kidding.

On a serious note, the randomness of covid affected AIA and everyone else. So that explains the results for the last few years. I struggle to forecast beyond 2 years. Too many things can happen in 100 years. Nothing happens in a straight line. For example I wouldnt rule out a international airport in Hamilton.

Edit: I just remembered off the top of my head across the different forms of fossil fuels. Its estimated supplies range from 50 to 80 years worth. Perhaps there won't be a Hamilton airport.

[BlackPeter]

Last 5 years probably the worst they’ll see until the next pandemic? Just having a random guess but would they be every 100 years or so?

The frequency of pandemics is not linear in time, but it is a function of people density, overpopulation and hygienic habits and similar (like politicisation of health).

Number of people did grow over the last hundred years following an exponential curve. Stupidity grew exponentially as well (only braindead idiots like anti vaxers and ultra rights politicise health). Make of that what you want, but I would expect the next pandemics knocks earlier on our doors ....

[winner69]

A must read ….and one should look through the Appendices in separate documents

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/AIA/416485/400522.pdf

[Rawz]

A must read ….and one should look through the Appendices in separate documents

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/AIA/416485/400522.pdf

whats the executive summary for the dummies like me

[winner69]

whats the executive summary for the dummies like me

Too complicated to summarise lol

Suppose ‘we need to increase landing charges’

[Azz]

It's basically a REIT with a runaway attached to it.

haha! yep.

[Fortunecookie]

haha! yep.

My guess they are the biggest landlords in Akl.

[Marilyn Munroe]

About the new terminal.

Can Aviation Security be ceased, at least for domestic flights? More of a ritual than a need. The new terminal construction will be less expensive if security checks are removed.

Boop boop de do
Marilyn

[Rawz]

About the new terminal.

Can Aviation Security be ceased, at least for domestic flights? More of a ritual than a need. The new terminal construction will be less expensive if security checks are removed.

Boop boop de do
Marilyn

Ive always wondered that, I fly to the regions for work and just basically walk onto the plane. Then I fly to Wellington or Chch and have to get my bag scanned. Waste of time

[ronaldson]

Auckland Council sell down underway. 11.154m at $8.15 and 25.890m at $8.11, with 66.053m now in the gentle hands of UBS under a block trade agreement at $8.10 - is the latter effectively an underwrite pending ongoing disposal action?

No SPH filing yet to indicate who may have purchased (if indeed that takes the buyer over the disclosure threshold, or they already are and need to notify the top up).

Interesting.

[ronaldson]

Closed yesterday at $7.81. Was $8.55 on 1 July being the start of ACC's financial year. May open at or over $7.90 this morning.

This pending sale has overhung the market in AIA shares for some time now, so likely the removal of this uncertainty will be positive from this point.

[Lego_Man]

Auckland Council sell down underway. 11.154m at $8.15 and 25.890m at $8.11, with 66.053m now in the gentle hands of UBS under a block trade agreement at $8.10 - is the latter effectively an underwrite pending ongoing disposal action?

No SPH filing yet to indicate who may have purchased (if indeed that takes the buyer over the disclosure threshold, or they already are and need to notify the top up).

Interesting.


The block trade was widely distributed amongst local and Aussie fund managers and institutions, as well as some of the retail brokers. I don't think we will see a major move in SSH.

[ronaldson]

Closed yesterday at $7.81. Was $8.55 on 1 July being the start of ACC's financial year. May open at or over $7.90 this morning.

This pending sale has overhung the market in AIA shares for some time now, so likely the removal of this uncertainty will be positive from this point.

There you are. Trading at $8.10 this morning and solidly bid. Pricing coincides the block trade agreement figure, which has some logic.

And see Lego Man's post #1731 above. So much more stability from now on. I wonder how happy the ACC elected members are with the price fall since they debated selling down?

[Sideshow Bob]

Blackrock increased their holding by 1%

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/AIA/417845/402519.pdf

[BlackPeter]

Blackrock increased their holding by 1%

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/AIA/417845/402519.pdf

Nice guys. I suppose they did help out the City of the Most Amazing Mayor to get rid of part of their shares.

I guess - really, Auckland could hardly walk anymore with all these shares sitting in their portfolio ...

[Marilyn Munroe]

I recently transited thorough Auckland Airport.

I purchased a bottle of booze at duty free. There was only a small price advantage over paying full taxed retail at a bottle shop. The inconvenience of carrying through customs and in my case through security to make a connecting flight made me question the purchase.

Do others have an opinion on this. Will this retail strategy have a detrimental effect on the rental income AIA derives from duty free?

Boop boop de do
Marilyn

[Sideshow Bob]

I recently transited thorough Auckland Airport.

I purchased a bottle of booze at duty free. There was only a small price advantage over paying full taxed retail at a bottle shop. The inconvenience of carrying through customs and in my case through security to make a connecting flight made me question the purchase.

Do others have an opinion on this. Will this retail strategy have a detrimental effect on the rental income AIA derives from duty free?

Boop boop de do
Marilyn

Not bought DF for years.

Minimal cost benefit vs a large PITA (pain in the as$) in carrying through a terminal and then on to a connecting flight. Most of the time go carry-on so is an extra PITA.

Literally millions of people walk through your store every year on the way to/from flights, and while high priced real estate I guess they must get enough business.....

As for security when you can't take water on flights but can take 3 litres of duty free.......

[Jaa]

Not bought DF for years.

Minimal cost benefit vs a large PITA (pain in the as$) in carrying through a terminal and then on to a connecting flight. Most of the time go carry-on so is an extra PITA.

Literally millions of people walk through your store every year on the way to/from flights, and while high priced real estate I guess they must get enough business.....

As for security when you can't take water on flights but can take 3 litres of duty free.......

Airports have maxed out what they can charge duty free stores so that will limit future profitability. Same with charging airlines, they charge so much that no startup airline can get established. Just hurts future profitability.

The opposite of "always create more value than you take" method of business.

[Sideshow Bob]

https://www.nzx.com/announcements/426616

1H24 results: International travel demand sees Auckland Airport deliver improved half-year result as it invests for the future

Auckland Airport today announced its financial results for the six months to 31 December 2023.

Auckland Airport Chair Patrick Strange said: “Global demand for travel saw Auckland Airport deliver a solid result in the first half of the 2024 financial year, with continued growth in our international network as airlines expanded capacity and new entrants joined the market. North America has been a particular highlight, where more people are now travelling to and from Auckland than ever before. While the outlook continues to remain positive, we may see the rate of growth slow over the second half of the financial year as the local aviation industry faces into economic headwinds.”

Key performance data for the six months to 31 December 2023:

• Total number of passengers 9.3 million
• Domestic passengers of 4.3 million, and international passengers (including transits) of 5.0 million
• Revenue of $440.5 million
• Operating EBITDAFI of $310.2 million
• Reported profit after tax of $118.7 million
• Earnings per share of 8.05 cents
• Net underlying profit after tax of $145.7 million (1)
• Net underlying profit per share of 9.89 cents
• An interim dividend of 6.75 cents per share will be paid

[peat]

https://www.nzx.com/announcements/426616

1H24 results: International travel demand sees Auckland Airport deliver improved half-year result as it invests for the future

Auckland Airport today announced its financial results for the six months to 31 December 2023.


• Earnings per share of 8.05 cents
• Net underlying profit per share of 9.89 cents
• An interim dividend of 6.75 cents per share will be paid

8 cps for a HY, so the rough calc is 16 cps p.a. so that's a PE over 50


Wow , good times must be coming and yet CEO says its slowing

[mikelee]

What an interesting face off in the up coming negotiation. 2 ex-Air NZ vs 1 current LOL.