NEW ZEALAND. Auckland Airport has posted a 24.6% year-on-year rise in retail revenue to NZ$110.8 million (US$75.6 million) for the six months ending 31 December 2018.
This easily outpaced passenger growth (arriving, departing, transit and domestic) of 3.7% to 10.6 million. International passenger growth of 4.4%, to 5.3 million, was attributed to increased airline capacity, primarily on Asian, Pacific Island and North American routes.
Retail income per international passenger grew 19.9% in the period. The airport attributed the strong commercial performance to the full six month effect from the expanded duty free area in the international terminal as well as the opening of 26 new stores during 2018.
International terminal retail sales were up 10.4% while passenger spend rate (PSR) increased 5.8%, with duty free and luxury the biggest contributors. Duty free PSR grew 10.4%, led by cosmetics & skincare, electronics and New Zealand health & wellbeing products.
The airport said luxury stores had grown overall retail sales without cannibalising other segments, and also noted a continued strong performance from the Collection Point (off-airport sales pick-up) and Strata Lounge. Both recorded double-digit sales increases.
However, Auckland Airport said it expected retail income to moderate in future periods “as we cycle recent store expansion”.
Total airport revenue increased by 11.5% to NZ$370.6 million (US$253 million). Earnings before interest expense, taxation, depreciation, fair value adjustments and investments in associates (EBITDAFI) increased by 10.8% to NZ$277.1 million (US$189.2 million).
“It has been a positive six-month period for Auckland Airport, during which we reached some significant milestones in our 30-year programme to build the airport of the future,” commented Auckland Airport Chair Patrick Strange.
“We are starting to see the early benefits of our multi-billion, inter-generational aeronautical infrastructure programme delivering significant new capacity, resilience and choice for our customers, airline and operational partners.
“During the six-month period we completed important terminal and transport-specific projects as well as making significant progress on the design, planning and procurement phases of our airport of the future infrastructure programme.”
