Passenger growth helps airport to $45m profit
Adelaide Airport has posted a $44.9 million profit on the back of rising passenger numbers and record revenue.
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ADELAIDE Airport has posted a $44.9 million profit on the back of rising passenger numbers and record revenue.
The airport, which generates income from aeronautical fees, car parking, retail rent and property income, turned over $214.3 million last financial year, up 8 per cent from the previous year.
Operating expenditure rose 8.3 per cent due to rising utility costs and new operating costs associated with new common-use and self-service facilities.
The airport reported a $15.9 million increase in the value of its investment property, compared to a $25.7 million uplift in the previous year. Its profit was down from $48.5 million in 2017.
Adelaide Airport managing director Mark Young said international passenger growth outstripped the national average last financial year, while domestic passenger numbers grew faster than in any other state.
“It was a very solid year, some pleasing passenger growth - 4.1 per cent overall and 5.6 per cent growth in international,” he said.
“We’ve now got nine international airlines that within one stop reach 300 destinations across the world.
“We’ve also seen growth in freight at just under 7 per cent, and we currently carry 60 per cent of exports out of South Australia. With the airlines we’ve got and the additional capacity, it’s an area where there’s a real opportunity for growth.”
A record 8.4 million passengers travelled through Adelaide Airport last financial year, with an additional 53,000 international passengers from the previous year.
The largest uplift in outbound passenger numbers was to Fiji while new domestic routes were introduced to Kingscote, Hobart and Newcastle.
In September, Adelaide will become the first Australian city to host the World Aviation Routes conference.
Mr Young said the event would offer an opportunity for the airport to pitch to airline executives from around the world.
“The airports pitch to the airlines and vice versa - it’s like speed dating for aviation business development,” he said.
“We are always talking to airlines that we think can increase the overall size of the market and not cannibalise the market.
“Our short term goal is to increase direct access into China and South East Asia and in the medium to longer term our target is the west coast of the US.”
Mr Young said the recently opened Atura Hotel was trading well while work on a $165 million upgrade of the international terminal was well underway.
The upgrade will include a new-look international arrivals area featuring VIP facilities and lounges as well as a larger retail and dining precinct and expanded duty free area.
“It’s a three-year project but some of it will be available to passengers as early as 2020,” Mr Young said.
“The primary focus of the project is to offer a better customer experience in international arrivals particularly, and in international departures as well.”
The terminal upgrade is the latest stage of the airport’s $1 billion master plan, which forecasts annual international passenger numbers to grow to 2.81 million by 2034, and to 14.1 million passengers on domestic flights.
Adelaide Airport paid a final dividend of $30 million to its shareholders, which include superannuation funds Unisuper, Statewide Super and Colonial.