Adelaide Airport delivers record revenue as international passenger number soar
An increase in international passengers helped Adelaide Airport deliver record revenue last financial year, and its boss believes growing the inbound market will help it reach new heights.
SA Business
Don't miss out on the headlines from SA Business. Followed categories will be added to My News.
- Qantas considers direct route from Sydney to KI
- How to get the most out of your Advertiser subscription
International passenger growth resulting from new services and upgrades by existing carriers has helped Adelaide Airport deliver record revenue and a $43.7 million profit.
The airport generated $225.5 million in revenue last financial year, up 5.2 per cent from the previous year.
Aeronautical revenue was up 5.4 per cent to $113.5 million, commercial trading revenue - representing rental income from retail tenants - rose 2.9 per cent to $27.8 million and car parking revenue was 3.2 per cent higher at $28.5 million.
Revenue earned on properties owned in the wider Adelaide and Parafield airport precincts rose 6.6 per cent to $52.4 million.
While earnings before interest, tax, depreciation and amortisation (EBITDA) rose 3.1 per cent to $153.2 million, higher depreciation costs and adjustments to the fair value of financial instruments resulted in a small decline in net profit, from $44.9 million to $43.7 million.
Adelaide Airport managing director Mark Young said while the domestic market remained “constrained”, international growth had helped the airport overtake Gold Coast Airport as the country’s fifth largest international airport.
“In international it’s the third consecutive year of 5 per cent plus growth, and that’s come about through carriers upgrading their services or product, or increasing the number of services, like Singapore going up to ten services a week,” he said.
Adelaide Airport is currently served by nine international carriers, connecting to more than 300 cities across the world, either direct or via one-stop connections.
In April, Malaysian-based carrier Malindo Air commenced services from Adelaide to Bali and onto Kuala Lumpur, shortly before Jetstar added an extra daily return service to the Indonesian island.
International passenger numbers rose 5.8 per cent to 1.06 million last financial year, outstripping domestic and regional passenger numbers which increased by 0.7 per cent to 7.46 million.
However, with close to two thirds of international traffic being made up of outbound travellers, Mr Young believes more can be done to attract visitors to the state and the country.
“Australia is still very much an outbound market,” he said.
“In order to stand out from the pack we need to find ways of promoting the state and the country to make sure we get our fair share.
“The closer to 50/50 we get, the more sustainable it is for international carriers and the more international visitor dollars are spent in South Australia.”
A $165 million expansion of the domestic and international terminal is on track for completion by the end of 2021, with some stages of the project expected to open by the middle of next year.
The project includes a major upgrade to international arrival and departure facilities, a new premium international lounge, the relocation of the Virgin Australia lounge and expanded office space.
It will also result in a more than 80 per cent increase in the size of the terminal’s retail and dining precinct across domestic and international areas.
Mr Young said an announcement regarding the first tenants to accommodate the new retail space was imminent, while plans for a new freight and logistics hub south of the airport’s main runway, with access via Richmond Rd, were also progressing.
“It’s very much a live prospect,” he said.
“There’s some very strong commercial partners interested in it and we’re actively working towards making that precinct a reality.”
Airport management is currently responding to feedback on the its draft master plan, which sets out its plans for growth, job creation and infrastructure development over the next 20 years.
It plans to present a revised master plan to the Federal Government by January, ahead of expected approval by mid-April.
“We had something like 80 responses,” Mr Young said.
“We have taken a significant number on board and made changes to the master plan as a consequence of the feedback.”
Adelaide Airport paid a final dividend of $25 million to its shareholders, which include superannuation funds Unisuper, Statewide Super and Colonial.
The full-year dividend of $45 million was down from $60 million in the previous year.