A significant uptick in passenger numbers and further increases to the value of a billion-dollar property portfolio have led Perth Airport to a second consecutive financial year profit.
The airport reported a profit after tax of $110.4 million in FY23, bolstered by a $35.3 million uplift in the value of a property portfolio now valued at $1.47 billion and a substantial increase in airport foot traffic.
The result was tempered by a ‘mark to market’ adjustment of negative $51.4 million, which the airport attributed to interest rate fluctuations.
It was lower than FY22’s $149.6 million result, which incorporated an $85 million increase to the value of the property portfolio and a positive mark to market adjustment of $104.2 million.
Underlying earnings before interest, tax, depreciation and amortisation were up 44 per cent at $403.8 million from $280 million a year earlier.
Passenger numbers suggest the airport is close to full rebound from the depths of the Covid-19 pandemic.
A total of 14.2 million passengers went through the airport in FY23, up 6.8 million from the FY22 figure and 8.3 million higher than at the peak of border closures in FY21.
That led to a return of positive aviation services revenue, which had almost broken even a year earlier coming off a significant loss in FY21.
The airport emphasised that its return to revenue was not driven by higher revenue realised per passenger, which came in at $14.18 – lower than the pre-pandemic level of $14.73.
Profit from parking and other ground transport services surged as well, with lower-cost long-term parking options proving popular among airport users.
Short term parking transactions fell 15 per cent year-on-year, but online transactions for long-term parking were up more than 430 per cent on pre-Covid levels.
Perth Airport acting chief executive Kate Holsgrove said the passenger increase and its flow-on effects were the result of greater demand from the fly-in, fly-out workforce, as the battery minerals industry grows and miners offer family-friendly rostering.
International travel remained down 8 per cent from pre-Covid levels, as routes continue to return from pandemic-led disruption.
Ms Holsgrove was confident the international rebound would continue, with the reinstatement of direct international flights alongside high profile new routes added to the airport’s roster.
“In FY23 alone we saw the return of Qatar and Emirates’ A380 aircraft, the first Philippine Airlines Manila flight, new services to Jakarta and Denpasar from Indonesia Air Asia and Citilink, and increased capacity on the Singapore Airlines service to Singapore,” she said.
Post the end of the financial year, direct flights between Perth and Tokyo resumed and new direct connections with Ho Chi Minh City were announced.
Planned direct flights to Paris are also in the pipeline commencing 2024.
Under the interim leadership of Ms Holsgrove ahead of the arrival of incoming chief executive Jason Waters later this month, Perth Airport continued to invest in projects over FY23.
Significant work included $36 million worth of boarding gate upgrades, an $8 million investment in self-service check in facilities, and $70 million spent on first-of-its-kind security screening equipment to meet new federal requirements.
A long-mooted new runway remains in the midst of a lengthy federal government approvals process, with the airport targeting delivery in 2028.
Planning is ongoing for the consolidation of the airport, and Ms Holsgrove said the airport was making progress in its relationship with Qantas as part of commercial negotiations.
Infrastructure including fast food outlets and a carwash are expected to be delivered in the coming financial year, along with work on an industrial warehouse, an expansion to the terminal two apron and an aviation support precinct.
Plans for a multi-storey carpark are also in the pipeline, while an airport hotel is in the early concept and approvals stage.
Ms Holsgrove said there was also strong interest in the airport’s property portfolio which comprises around 500 undeveloped hectares among a total 2,100-hectare estate, 11km from the city.
Mr Waters will take the reins from Ms Holsgrove later this month, after he resigned from his role as chief executive at Perth Mint in late May.
Ms Holsgrove will remain on the airport executive team in her capacity as chief commercial officer.
