Retail in positive territory at Auckland Airport

Auckland AirportAuckland Airport’s (AIAL) annual results for the financial year to June 30 show both retail and car park income in positive territory.

In the 12 months to June 30, the airport generated retail income of $132 million, a +3.9 per cent increase from the previous period.

Car park income grew by +8.9 per cent over the previous period, to $46.6 million, helped by the addition of 1,200 public parking spaces.

AIAL classified its total retail and duty free performance as good, despite the impact of restricted customs’ allowances for tobacco in both New Zealand and Australia.

The airport’s passenger spend rate (PSR) declined -one per cent, including for tobacco. However, when tobacco is taken out of the equation, the PSR increased +2.8 per cent over the year.

In speciality retailing, by contrast, the PSR grew by +25 per cent, helped by new stores including Comvita, MAC, Saben, 3 Wise Men and Casio G-Shock.

After making what it describes as a “seamless transition” to two new duty free retailers, Auckland Airport is now focusing on supporting the refurbishment of exiting stores to expand the footprint and range.

Already, LS travel retail Pacific’s Aelia Duty Free and Aer Rianta International’s The Loop Duty Free took up minimum seven-year duty free concessions at the airport at the end of June this year.

“We have introduced two new duty free operators and exciting fashion, food and beverage retailers in our terminals,” commented AIAL chair, Sir Henry van der Heyden.

“Our collaborative work with partners has improved the efficiency of airport operations and has delivered significant benefits for our passengers.”

Auckland Airport now has five retailers running full online click-and-collect models, and momentum is building in this area.

With marketing of new speciality and food and drinks’ concessions under way, including luxury goods, fast fashion and smart casual dining options, the retail component of Auckland Airport’s income is poised for a next phase of growth, AIAL said.

Overall passenger numbers rose +five per cent to 15.8 million, with growth in international passengers numbers by +5.7 per cent to 8.1 million, international transit passengers +6.7 per cent to 500,000, and domestic passengers +4.2 per cent to 7.2 million.

Chinese passenger numbers increased by +28.8 per cent over the previous 12-month period, helped by enhanced capacity and frequency on China Eastern Airlines and China Southern Airlines’ services.

Other source markets to notch double-digit increases in passengers included Southeast Asia, with +11.9 per cent and the USA with +10.6 per cent.

At AIAL’s group airports, international passenger numbers grew +29 per cent at Queenstown Airport, with domestic numbers up +6.4 per cent on the previous 12 months.

North Queensland Airports experienced modest passenger growth, but recorded a +25 per cent increase in underlying profit.

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