Bonus for Auckland Airport staff after good year
Auckland International Airport is paying its staff a $1500 performance bonus after full-year profit and revenue benefited from the country's tourism boom and a significant uplift in the number of international airlines and capacity servicing Auckland.
In the year to June 30, total passenger movements were up 9.1 percent to 17.3 million while international passengers (excluding transits) rose 8.1 percent to 8.8 million and domestic passengers increased 9.8 percent to 7.9 million.
That tourism uplift has attracted 8 new international airlines during the 2016 financial year and seen 15 new routes established and flight frequencies increased on existing routes. Domestically the arrival of Jetstar on regional routes to compete against Air New Zealand has also increased flight capacity.
Chairman Henry van der Heyden said to support that growth, the company had started a major upgrade of its international departure area and the planning and design work on a combined domestic and international terminal building and second runway.
It was also paying a performance bonus of $1500 before tax to staff who don't participate in the short-term incentive scheme.
Shareholders will also benefit from a 9 cents-per-share fully-imputed final dividend to be paid on October 13, taking total dividends for the year to 17.5 cents per share, a 19.9 percent increase on the prior year.
Auckland Airport's net profit rose 17.4 percent to $262.4m while underlying profit rose 20.6 percent to $212.7m.
Mr van der Heyden said the company's continued strong performance meant the board was confident of similar results in the next financial year, with forecast underlying net profit after tax (excluding any fair value changes and other one-off items) for 2017 to be between $230m and $240m.
The airport company's shares rose 0.4 percent to $7.23 and have gained 46 percent in the past 12 months, outpacing a 31 percent gain in the S&P/NZX 50 Index. The stock is rated a 'sell' based on a Reuters survey of analysts with a median price target of $5.98.