AIA passenger numbers up 9% in March

More flights mean more international passenger numbers for Auckland Airport. Photo: Reuters
More flights mean more international passenger numbers for Auckland Airport. Photo: Reuters
Auckland Airport’s international passenger numbers continue to increase, up nearly 9% in March, due mainly to the Easter holiday period starting in late March this year.

International passenger numbers rose to 909,413 in March, a 74,000 increase on March last year. Easter was in mid-April last year.

There was strong capacity growth on the Asia and Middle East (up 24,000 seats), Americas (up 14,000) and the Pacific Islands (up 14,000) routes, the airport company said in a statement to the NZX.

Air New Zealand and Virgin Australia had both announced increases in their transtasman capacity following the decision to end their alliance.

From December this year, Air NZ would be adding 15% capacity on its Auckland services and Virgin Australia would increase frequency — up to triple daily on Sydney and up to double daily on both Melbourne and Brisbane.

Air NZ would also launch a new three-flights-a-week service between Auckland and Chicago. Starting in November, the service would provide more than 85,000 seats on the new route.

United Airlines had also announced it would extend its seasonal service between Auckland and San Francisco to year-round, operating a B777-200 aircraft three times a week during the northern summer season from April 2019.

Philippine Airlines had announced it would upgrade the aircraft used on its Auckland service from June.

The change to the new, three-class A330 aircraft would increase the overall route capacity by 22%.

However, it was not all smooth sailing for Auckland Airport.

Last week, the Commerce Commission expressed its concern Auckland Airport was planning to make excessive profits on its regulated assets.

In return, the airport company said its risk profile had changed as it entered an extended period of major new capital developments.In an initial finding published last week, the competition regulator said: "Auckland International Airport’s profits may be too high over the period 1 July 2017 to 30 June 2022".

The airport was targeting a return on its regulated asset base of 7.06% against the commission’s mid-point benchmark of 6.41%

"This difference in target returns could result in customers paying an additional 61c per flight over the next five years, or put another way — Auckland Airport earning an additional $47 million in profits after tax," commission deputy chairwoman, Sue Begg, said in a statement. 

It would also result in the assets the airport held for construction of a second runway being overstated by $8 million.

The valuation of regulated assets drove ultimate returns.

"There may be legitimate reasons for Auckland Airport to target higher returns than our benchmark.

"However, based on the information they have provided to date, we are yet to be satisfied that they will be acting in the long-term interest of consumers and limited in their ability to earn excessive profits," Ms Begg said.

Figures supplied by Auckland Airport showed its total passengers rose 8.5% in March to 1.84 million from 1.69 million in March last year.

Figures for Queenstown Airport showed international passenger numbers  rose nearly 23% in March to 49,620 from 40,412. In the year to date, international passenger numbers had risen 12.6% to 429,012 and in the rolling 12-month total, numbers had increased 12.8% to 586,359.

Total domestic passengers had risen 13.1% to 149,363.

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