New Zealand: Auckland Airport announces $1.8B infrastructure spend by 2022

Auckland International Airport announced plans to invest NZ$1.8b in aeronautical infrastructure by 2022 and said over the next five years its average international passenger charges will reduce by 1.7% in real terms each year while domestic passenger charges will only increase by 0.8% per annum. In nominal terms, however, average revenue on a per passenger basis is expected to be $22.98 in the current financial year and will rise to $23.50 by 2022. For domestic passengers, it is expected to be $5.73 this year and $6.57 in 2022. It is expecting total passenger numbers to rise from 19.8m in the current financial year to 22.6m in 2022. According to the company, its new prices for the 2018-2022 financial years will target a return on investment of 6.99 %. "We believe our prices are fair and reasonable given the significant investment we are making in long-term infrastructure and our charges remain only a small fraction of the overall cost of travel," said Auckland Airport CE Adrian Littlewood.<br/>