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

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.

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