Queenstown tipped as factor in AIA's first-half profit rise

Peter Young
Peter Young
Auckland International Airport is expected to report a 4% increase in its after-tax profit for the first half of the 2013-14 financial year.

Analysts expect it to be between $73.2 million and $73.7 million.

AIA, the tourism gateway to New Zealand and a 25% stakeholder in Queenstown Airport, is due to report today. Queenstown Airport is expected to feature in the half-year result.

Forsyth Barr broker Peter Young expected after-tax profit to be $73.7 million, up 4% on a year ago, and AIA also to book a 3% increase on last year's revenue, to $222 million.

Queenstown Airport had an extra 132 flights in December. Photo supplied.
Queenstown Airport had an extra 132 flights in December. Photo supplied.
Investors should be looking at passenger numbers as, while domestic travel was expected to be up 7%, international passengers were thought to be down 2%, Mr Young said.

Earlier this month, it was reported there were an extra 132 international and domestic flights into Queenstown Airport during December, international passenger numbers rising 51% and domestic passenger numbers up almost 20% during the month. Craigs Investment Partners broker Chris Timms expected AIA's after-tax profit to be $73.2 million on revenues of $221.2 million.

While international passenger growth was down, it was coming off an 6% boost a year ago because of the Rugby World Cup, Mr Timms said.

- simon.hartley@odt.co.nz

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