Auckland International Airport (AIA) has lifted its 2023 profit guidance to be between $100 million and $130m thanks to a rebound in the aviation market.
The airport told the New Zealand stock exchange (NZX) that its underlying profit after tax had been raised from its original August guidance of between $50m and $100m due to high aircraft load factors and continued strength in international seat capacity.
“During the first quarter we experienced strong demand for travel within New Zealand as well as internationally,” AIA's chief executive, Carrie Hurihanganui, said.
She said the shape of the recovery was also consistent with what the airport was seeing globally, with travel “significantly” picking up in the UK, Europe and in the Americas following borders reopening.
Hurihanganui added that North Asia had been slower to reopen, but the airport was seeing evidence of a stronger-than-forecast uplift in seat capacity in the market, including to and from South Korea.
Capacity to North Asia had been boosted by Korean Air increasing its services.
The airport’s capital expenditure guidance for the 2023 financial year remained unchanged at between $600m and $700m.
Starting in early November, five airlines would start flying between Auckland and North America over the high season.
This will offer up to 60 flights per week and direct flights to eight destinations, including Honolulu, Los Angeles, San Francisco and New York.
The airport said that Emirates plans to restart daily non-stop Auckland to Dubai A380 flights from Dec 1.
The stock rose 0.4% to $7.21 yesterday. AIA has its annual meeting this morning.