Auckland Airport (ASX:AIA) announces delay on first price reset

Company News

by Lauren Evans

Auckland Airport (ASX:AIA) has announced a 12-month delay on the first price reset in response to uncertainty in the aviation market amid the pandemic.

The Price Setting Event 4 (PSE4) covers aeronautical prices for the five-year period from financial year 2023 to 2027. Since June last year, Auckland Airport has been consulting with airlines on the timing of the first price reset for PSE4, which would usually be effective from July 1 this year. 

During consultation, Auckland Airport proposed introducing a price freeze period where prices for financial year 2023 would be held the same as 2022 with the possibility of extension. Prices for financial year 2024 onwards would be determined following airline consultation during the 2023 financial year, and those prices would be based on forecast passenger volumes and set to achieve Auckland Airport’s target return on aeronautical capital. 

“This has been an extremely challenging time for everyone in aviation, and Auckland Airport is working hard to support our airline partners while the recovery trajectory remains highly uncertain,” said chief financial officer Phil Neutze. 

Mr Neutze said it may adjust the current $2.00+GST charge per international and transit passenger to recover from quarantine segregation costs.

Shares in Auckland Airport (ASX:AIA) are trading 0.7 per cent lower at $6.73. 

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