Infratil Airports Monthly Overview June 2008
15 Jul 2008
The aviation market globally is experiencing significant strain with the combined impact of the large jump in fuel prices and weakening economic conditions.The impact of these factors is masked to some degree at Wellington Airport due to the recent stimulation of competition. Also, in difficult times, the relative strengths of markets is important given absolute capacity reductions are difficult for airlines to sensibly implement in the short term. Wellington, with its strong Government and business presence and good passenger demographics, is a good option for airlines in tough times.
Infratil's European Airports all hold relatively small shares of the total traffic of the regions they serve. As a result, market share is as important as total region activity. Strength of key customers and maintaining an efficient operating and capital cost base are crucial in this environment. The Glasgow Prestwick passenger results are showing signs of these strengths against a shrinking Glasgow market. Freight, however, remains volatile.
Wellington Airport
Wellington Airport June 2008 operational figures are available here.June domestic passengers were 13% above the previous year. This is below the 20%+ growth levels achieved in recent months. Severe weather materially impacted 3 days in June. Average seat load in June of 71.8% was marginally softer than recent months, and is below the previous year, but remains creditable given the 19% increase in seat capacity. Year to date passenger volume for the three months ended June is 20% above the previous year following a similar increase in seat capacity.
International passengers were below the previous year by 6% following a 2% decrease in capacity. The weather disruptions also resulted in a loss of international services during the month. An average load factor of 70% was well below the level achieved in summer months, although May and June traditionally seasonal lows for trans-Tasman travel. Year to date passengers are 3.5% below the previous year with seat capacity increased by 1%. Pacific Blue increased its Brisbane schedule from 3 to 5 times per week from 20 June.
A display model of "The Rock" has been installed in the terminal to provide customers with further information about how the international terminal expansion with look and function. Despite frustrating delays due to fuel hydrant installation issues, site preparation works to enable construction are progressing with visible construction works expected in late July/early August.
Refurbishment of the Whitcoulls and CD Store tenancies has been completed. Construction has now begun on a new food outlet in the terminal with a new concept to be introduced for passengers in coming months.
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