New Zealand needs to enhance its efforts to attract tourists, Auckland Airport chief executive Carrie Hurihanganui said, following the company’s report of its first-half performance.
Auckland Airport reported a net increase reaching $187.3 million for the six months ending December 31. Underlying profit saw a modest rise to $148.1 million. During this period, Auckland International Airport (AIA) experienced a positive turn of $50 million in commercial property revaluations in contrast with its $27 million decline in the previous year.
Operating earnings before interest, tax, depreciation, amortisation, financial instruments, and interest rose by 13% to $349.6 million.
Despite these figures, the company’s share price dropped significantly after the announcement of the results.
In a conversation with the NZ Herald, Hurihanganui said, “We’ve certainly seen demand holding steady for international travel, which is a good thing, but just overall, growth is more subdued than expected.”
Hurihanganui also described international space as a “very competitive environment.”
“Everybody coming out of COVID is competing for that recovery and for the tourists.”
“And we’ve got more work to do in that space,” Hurihanganui added.
Hurihanganui said international market capacity remained unchanged at 89% compared to 2019 levels during the half-year period, affected by market competition and factors such as Air New Zealand’s fleet challenges.
She emphasised the necessity for Auckland International Airport (AIA), other operators, and the government to collaborate in order to effectively address the capacity gap and boost tourism.
Hurihanganui also commended the government as it continues to focus on investing, economic growth, and launching campaigns in Australia.
“We need to take steps because we’ve lost ground in the last 12 months compared to other destinations,” she said.