Auckland Airport Retail revenue forecast

21 May 2009

Current market consensus for the Retail component of Auckland Airport’s revenue in FY10 is approximately $104m.

Auckland Airport believes a more likely Retail revenue forecast for FY10 is in the range $90 - $93m.

It appears that the market is not sufficiently allowing for the following:

  • Impact of the reversion to a dual operator duty free model which sacrificed the benefits in terms of scale, penetration and range associated with the single operator model and requires the second operator to establish its market position at the Airport

  • Impact of declining international passenger volumes and reduced consumer spending resulting from the global downturn

  • Impact on trading from the disruption due to construction work in the departures area

There is no change to previous earnings guidance provided for FY09.