Auckland Airport raises capital expenditure forecast to meet future growth
The airport expects capital spending of between $230 million and $260 million in the 2016 financial year.
See also: Floods of tourists prompt airport's capex increase
Auckland International Airport [NZX: AIA], the country's biggest gateway, raised its forecast for annual capital expenditure to enable it to better cater for future growth.
The airport company expects capital spending of between $230 million and $260 million in the 2016 financial year, ahead of its earlier forecast of between $190-205 million and about $148 million in 2015, it said in a statement. Some $135 million of capex is earmarked for aeronautical projects to upgrade and expand its terminal and airfield capacity for passengers and airlines, up from the $100 million previously forecast.
New Zealand's tourism industry is booming, with overseas visitor arrivals rising 9% to a record 3.04 million in the year through September, according to data published yesterday. The airport's additional spending will enable it to meet peak demand this summer, with a new international bus lounge facility, as well as additional layover stands for larger aircraft such as the Airbus 350 XWB and Boeing's B777 and B787-8 Dreamliner, the company said.
"The updated capital expenditure forecast is a direct result of the strong growth across our business, especially from those parts driven by tourism and property," acting chief financial officer Phil Neutze said. "I am confident that our investment programme means we are catering for our short-term aeronautical capacity, the strong property demand pipeline and aligns with our longer-term plans for the next 30 years and beyond."
Separately, the airport operator said it's looking at offering a seven-year retail bond to retail and institutional investors, without providing details on the size.
Auckland Airport shares slid 1% to $5.18 and have gained 22% this year.
(BusinessDesk)
Tina Morrison
Thu, 22 Oct 2015
Thu, 22 Oct 2015
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Auckland Airport raises capital expenditure forecast to meet future growth
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