Auckland airport anticipates profit rise

Auckland Airport is expecting net profit in a range from $112 million to $118m for the 2011 financial year, when one-off items are excluded...

That was based on international passenger growth of around 5 per cent, and capital spending of about $85m, excluding yet to be committed property development, chairman Tony Frankham told the company's annual meeting today.

For the 2010 year the underlying net profit, excluding one-offs, was $105.05m.

Frankham, who is retiring from the board, said there were fewer signs of turbulence than a year ago, but many challenges remained.

The company was well positioned to benefit in 2011 and beyond from the operating leverage it had been able to set up, Frankham said today.

The aviation sector was in a healthier position than it had been 12 months ago, with improvement in the global economic environment and a consequent increase in demand for travel.

Auckland Airport had refocused its business. It had secured airline announcements for a large number of new or up-scaled air services, and had embarked on one of this country's most active property development initiatives, Frankham said.

Among the issues before shareholders today is a proposal to increase directors' fees.

Originally it was proposed that the total quantum of annual directors' fees rise 12.2 per cent or $140,000 to $1.29 million.

But last week the airport said that after considering feedback from shareholders, the board had decided that if the resolution was passed, it would apply only half the proposed increase in the 12 months following the annual meeting. The full increase would apply in the year following the annual meeting to be held in 2011.

Source: NZPA