Profit dip at the half year for Auckland Airport, but second half set to soar

Thursday, 19 February 2026

More airlines providing more seats has boosted Auckland International Airport’s passenger numbers, but profit was down for the half year to the end of December at the venue.

Net profit had slumped just under $10 million from the same period last year, to $177m, but the airport said there was a positive trajectory for the rest of the year, and guidance for underlying profit after tax in the full year narrowed to a range of $295m-$320m from $280m - $320m. Slightly less was forecast to be spent on capital expenditure overall - somewhere between $1 billion - $1.2 billion.

Chief executive Carrie Hurihanganui said the launch of China Eastern’s Shanghai, Auckland and Buenos Aires service was the most significant international development during the period.

“The service places Auckland Airport at the heart of the world’s longest direct flight, delivering an estimated $110m in benefits to New Zealand’s economy annually,” Hurihanganui said.

Construction of the integrated domestic jet terminal was on track for completion in 2029, with steady progress achieved across both terminal and airfield works.

The new terminal structure is now clearly visible, and in November the project reached a key milestone with the physical connection to the existing international terminal building.

About 60,000m² of airfield had been temporarily closed to support construction of the domestic jet terminal pier and stands, with piling underway, fuel system installation progressing and airfield pavement works now starting, Hurihanganui said.

“We’re excited to see this project take shape alongside other major infrastructure projects in Auckland, benefitting the region with enhanced connectivity, an improved visitor experience, and helping to drive Auckland’s economic growth.”

Hurihanganui said construction at the international terminal over the next 18 months would become more visible to travellers with the opening of a temporary check-in facility and changes to the passenger access routes.

“This next stage of the build, where we are upgrading the check-in area at the international terminal, is an essential step in delivering the long-term capacity, resilience and improved customer experience travellers have been asking for at Auckland Airport,” she said.

“Travellers can expect some temporary disruption as this complex work gets underway, particularly in international departures.”

Amova analyst Tim O’Loan said “overall, the market should be satisfied with a result that met consensus forecast and indicated that things seem to be going in the right direction”.

Improving international traffic provides encouragement, as does the disciplined cost control and strong margins that came through, despite the airport being at peak infrastructure investment.”

Improving international traffic was encouraging, “as was the disciplined cost control and strong margins that came through, despite the airport being at peak infrastructure investment,” he said.

Airline competition

Hurihanganui said Air New Zealand grew its network from Auckland, with seat capacity to Australia up 8.4% and capacity to the Pacific Islands increasing by 7.3%, while rivals Jetstar and Qantas lifted seat capacity from Auckland to Australia by 4% and 7.3% respectively during the half year.

Traffic on the North American routes was also higher, from the seven carriers competing in that market. But global aircraft shortages would weigh on airlines’ ability to add seat capacity supply and restrict growth in the near term, she said.

Total seat capacity on international routes increased 1.8% during the half-year compared to 2025, lifting the recovery in non-transit passenger movements to 93% of the same period in the 2019 financial year. Total number of passengers increased 2% to 9.64 million. Domestic passenger numbers were up 2% to 4.37 million.

Domestic

Air New Zealand and Jetstar had added the largest number of jet seats in 10 years, though capacity was still only 93% of the same period in 2019.

“Overall, there was a 5% increase in domestic jet seat capacity or 181,000 seats in the local aviation market during the half-year, helping to make flying more affordable on key routes with average jet airfare costs falling by 6% during the period,” Hurihanganui said.

New infrastructure brought into service during the period included the 250,000m² international airfield expansion, a new cargo access point to the airfield, a major upgrade of the stormwater network and the western truck dock.

“The opening of the new $465 million international airfield expansion in September 2025 was an important milestone, creating parking for 11 aircraft and supporting improved airfield operational efficiency.

Construction of the integrated domestic jet terminal remained on track for completion in 2029.

Hurihanganui said construction at the international terminal over the next 18 months would become more visible with the opening of a temporary check-in facility and changes to the passenger access routes.

“Travellers can expect some temporary disruption as this complex work gets underway, particularly in international departures,” she said.

French retailer Lagardère was appointed as the airport’s sole duty-free operator at the start of the start of the half-year period.

Shares gained 1.63% in the day after the result.