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Airports grow as passengers dwindle
Despite setbacks from lower numbers of passengers and weak car park figures, east coast airports have set record profits, based on national figures.
Airports grow as passengers dwindle
Despite setbacks from lower numbers of passengers and weak car park figures, east coast airports have set record profits, based on national figures.
Brisbane, Melbourne, Perth and Sydney collectively earned $863.5 million in operating profits from aeronautical activities in 2018-19, up 3.6 per cent.
“Despite weaker growth in the number of passengers flying in 2018-19, together the four largest airports have managed to report record profits from aeronautical activities,” ACCC chair Rod Sims said.
“Australia’s four major airports have collectively increased their aeronautical profit almost every year over the 17-year lifespan of the ACCC’s monitoring. This may illustrate the benefit of being a monopoly,” Mr Sims continued.
Sydney Airport’s return on aeronautical assets was its highest since the monitoring regime began, rising to a return of 12.5 per cent, while returns for the other three airports fell.
Last week, the publicly traded Sydney airport reported earnings before interest tax depreciation and amortisation of $1.33 billion, up 4 per cent.
At Perth Airport, the operating profit from aeronautical operations fell by 19.2 per cent in 2018-19 to $75.7 million due to lower charges to airlines and higher costs associated with taking back operational control of its domestic terminal T4 from Qantas.
The ACCC also noted the profitability in car parking revenue continues to fall for all four airports as consumers continue to look for cheaper alternatives to get to and from the major airports.
The airports collectively earned $276.1 million in operating profit from car parking in 2018-19, down 2.5 per cent. Both Sydney and Melbourne airports earned lower profits than the previous financial year; however, Brisbane and Perth airports’ profits increased.
“While Melbourne Airport has reduced its car parking prices, and profits generally have fallen, the airports are still earning very high profit margins from car parking,” Mr Sims said.
Sydney and Brisbane airports were typically the more expensive airports for short-term parking near the terminals, while Sydney and Perth were generally the more expensive airports for long-term parking away from the terminals. Parking prices generally increased in 2018-19 at Brisbane Airport, while they continued their downward trend at Melbourne Airport.
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