Auckland International Airport (ASX:AIA) reported a “promising start” to FY26, with management citing building travel demand, improved operational performance, strong cargo growth, focused cost control and solid outcomes across commercial business lines. Chief executive Carrie Hurihanganui and chief financial officer Stewart Reynolds presented interim results for the six months to December 2025, alongside updates on the airport’s large aeronautical investment program and revised guidance for the full year.
First-half earnings and dividend
Hurihanganui said first-half FY26 revenue increased 4% to “just under” NZD 520 million, supported by higher aeronautical charges, rising passenger numbers and higher commercial income. Operating EBITDAFI rose 6% to NZD 371.3 million, lifting the EBITDAFI margin. Net underlying profit after tax increased 6% to NZD 157.1 million, while reported profit after tax fell 5% to NZD 177 million due to lower investment property revaluations than the prior period.
Traffic trends: passengers, seats and cargo
Total passenger movements increased 2% to 9.64 million, comprising domestic passengers of 4.37 million (up 2%) and international passengers including transits of 5.27 million (up 2%). Management highlighted improving capacity and competition in parts of the market, while noting global fleet shortages remain a near-term constraint on seat supply.
- International seat capacity rose 1.8% in the first half and reached 89.3% of 2019 levels; non-transit passenger movements reached 93.2% of 2019.
- In December, international load factors were 5 percentage points above the FY19 equivalent, which management said indicated demand was outpacing supply.
- Domestic jet seat capacity rose 5% in the first half (described as the largest boost in a decade), adding 181,000 seats. Management said average jet airfare costs fell around 6% during the period.
Cargo was a standout: the airport handled almost 86,000 tons of international cargo, valued at NZD 20.3 billion, up 37%. Hurihanganui also cited Auckland’s role in New Zealand’s trade flows, saying Auckland accounts for 89% of international air freight volume and 93% by value.
Commercial performance: retail, parking, and property
Commercial income rose 5% to just under NZD 240 million, with growth across car parking, retail, investment property and rental income.
Retail: Hurihanganui said retail income was NZD 92.3 million, with total passenger spending revenue (PSR) up 2% (or 5% excluding foreign exchange). Income per passenger was NZD 9.76, down 4%, which management attributed to changes in sales mix and lower concession rates. Reynolds said retail income declined 2% overall as lower concession rates, promotional activity and a shift toward lower-margin categories (including technology) drove higher sales and transaction values but reduced income per passenger. In Q&A, Reynolds said concession yield pressure was being seen across the region and was “not unique” to Auckland Airport.
Car parking: Parking revenue increased 14% to NZD 41.1 million. Management attributed this to a full six-month contribution from the Transport Hub, growth in premium products, longer average stays (Reynolds cited an increase of more than 20% across categories), and higher international passenger numbers. Domestic car park exits fell 7% due to weaker corporate demand, the domestic economic backdrop and the loss of about 700 spaces related to airfield expansion works, partially offset by valet and Park & Ride resilience.
Property and precinct: Investment property rental income increased 9% in the half, with the rent roll up 2% to NZD 195.4 million. Hurihanganui said softer market conditions contributed to slower-than-expected investment property activity, though interest from prospective tenants remained strong. Hotels averaged 83% occupancy (up from 78%), and the Ibis refurbishment program was described as on plan, with the first stage complete and the second stage expected to begin in April. The Manawa Bay retail precinct marked its first anniversary and was said to be performing well, with footfall up 6% and sales up 18% for comparable November and December periods.
Costs, capital program progress and updated guidance
Reynolds said operating expenses fell 1% to just over NZD 148 million despite higher aviation, commercial and construction activity. He credited cost discipline and the “MatchFit” program, which he said has delivered more than NZD 20 million in savings, some of which were redeployed to higher-priority areas. Looking ahead, Reynolds told analysts he expects operating expenses to rise in the second half versus the first half “in the low single digits” in dollar terms, reflecting increased activity and the need to manage disruption from construction.
Depreciation increased by more than NZD 19 million (up 20%) due to assets commissioned in the prior year and the current half, including NZD 2 million of accelerated depreciation for assets with shortened useful lives due to the investment program. Gross interest expense declined 8% to NZD 68.4 million, reflecting the full-period benefit of cash from the late-2024 equity raise and lower interest rates, partly moderated by a high fixed-debt component. The company reported drawn debt of about NZD 2.6 billion at 31 December, with undrawn bank facilities of just over NZD 1 billion and cash reserves of NZD 361 million. Reynolds said around 87% of borrowings are fixed.
Capital expenditure totaled almost NZD 431 million in the first half. Hurihanganui said more than NZD 743 million of assets were commissioned, with NZD 724 million related to aeronautical projects. Key commissioned works included the NZD 465 million northern airfield expansion (“the Stitch”), a new direct cargo airside access point, stormwater upgrades, the western truck dock and airfield pavement renewals. The integrated domestic jet terminal was said to remain on track for completion in 2029, with the terminal now physically connected to the existing international terminal and airfield works progressing.
For FY26, Hurihanganui said the company narrowed its guidance for underlying profit after tax to NZD 295 million to NZD 320 million, while keeping passenger expectations at about 8.6 million domestic and 10.6 million international passengers. Capital expenditure guidance was narrowed to NZD 1.0 billion to NZD 1.2 billion, with management noting that previously anticipated higher commercial property spend had not materialized.
About Auckland International Airport (ASX:AIA)
Auckland International Airport Limited provides airport facilities, supporting infrastructure, and aeronautical services in Auckland and New Zealand. The company operates through three segments: Aeronautical, Retail, and Property. The Aeronautical segment provides services that facilitate the movement of aircraft, passengers, and cargo, as well as utility services, which support the airport; and leases space for facilities, such as terminals. The Retail segment offers services to the retailers within the terminals; and car parking facilities for passengers, visitors, and airport staff.
