Auckland Airport outlines $1.2bn of expansions after revenue increase in H1

The airport has announced $1.2bn of infrastructure projects which are already underway, with more in the pipeline as bosses seek to prepare for growing passenger numbers

Auckland Airport posted $374.7m in revenue for the first half of the 2020 financial year, marking a 1.1% increase on the previous year.

The financial growth came despite a drop in passenger number, which were down 0.5% year-on-year to 10.6 million, due to a 1.2% decrease in domestic traffic brought about by Jetstar’s exit from regional services.

But airport bosses cited a 0.2% increase in international traffic as a sign that passenger growth is continuing as they discussed vast infrastructure development plans for the New Zealand hub.

$1.2bn worth of construction is currently underway in Auckland, with work on a £350m, 30,000sqm arrival area set to begin later this year, alongside the expansion of the airfield and an upgrade of transport in the area.

Anchor projects

The new arrivals area will be the fourth of eight key “anchor projects” which make up Auckland Airport’s plans to prepare for passenger numbers to more than double to upwards of 40 million by 2044.

Auckland Airport Board Chair Patrick Strange said: “Auckland Airport is well underway with the biggest transformation in our history to modernise and expand the precinct to become an airport of the future.

“There is strong momentum in our infrastructure development programme with construction in progress on four of our eight key anchor infrastructure projects.

“Our focus is on delivering for customers and for New Zealand and it’s been a solid start to the financial year as we continue our work on significant new aeronautical infrastructure and advance plans for a new Domestic Jet Hub.”

Of the eight planned projects at Auckland, four are already underway: The creation of a new international arrivals area, the expansion of airfield stands and taxiways, an upgrade of road networks and work on the domestic terminal.

Four further projects are in the pipeline: A new domestic Jet Hub terminal, a multi-storey car park and developments on the Northern runway and cargo precinct.

New builds

First to commence building will be the new international arrivals area, which will provide 30,000sqm of space and airport bosses say sense of place will be at the heart of the new creation.

Auckland Airport Chief Executive Adrian Littlewood explained: We want everyone stepping off a long flight to feel the warmth of manaakitanga, a generous and warm welcome that is uniquely Aotearoa New Zealand, when they arrive into Auckland Airport.”

He continued: “The expanded area will also help to strengthen New Zealand’s border to prevent pests and diseases from entering the country and allow for the automation of many biosecurity processes. Scheduled for completion in late 2023, the expanded area will also deliver a 50% capacity increase in Biosecurity New Zealand and New Zealand Customs processing space, helping to improve peak time capacity.”

The next big project will be the creation of a $1bn Domestic Jet Hub terminal, to be connected to the current international terminal. Planning work is currently underway for the project

“It’s no secret that the complexity of delivering such a large-scale vertical development in both a constrained construction market and a 24/7 operating environment has created some challenges for us,” Littlewood said.

“However, we have made significant strides in advancing the design and delivery model for the project over the period, with enabling works for Domestic Jet Hub now underway in and around the future building footprint.”