The aeronautical operations of Brisbane, Melbourne, Perth and Sydney airports returned to profit in 2022-23, the first full financial year since the end of COVID-19 travel restrictions, the ACCC’s latest Airport Monitoring Report shows. In contrast, all four monitored airports reported losses on their aeronautical operations in 2021-22.
The four airports reported a total of 100.7 million passengers passing through in 2022-23, up 127.4 percent from the previous year. However, the number of domestic passengers was still 10.4 percent below 2018-19 (pre-pandemic) levels, and international passengers 31 percent below.
“Australia’s four largest airports reported a significant increase in aeronautical revenues and a return to aeronautical operating profits in 2022-23, as interstate and international travel restrictions ended and people returned to the sky,” ACCC Commissioner Anna Brakey said. “The airports stayed open during the pandemic and continued to incur some aeronautical expenses, without their usual level of accompanying revenues. As passengers returned in 2022-23, aeronautical revenues increased more than expenses, which lifted profit margins closer to pre-pandemic levels.”
Perth Airport recorded an aeronautical operating profit margin of 34.6 percent in 2022-23, followed by Sydney Airport with 29.1 percent, Brisbane Airport 28.8 percent, and Melbourne Airport 22.9 percent. Perth Airport’s aeronautical operating profit margin was slightly higher than the 34.2 percent it recorded in 2018-19, but Sydney, Brisbane and Melbourne’s were lower than 2018-19.
The four airports combined invested $559 million in aeronautical operations in 2022-23, which is a relatively modest amount compared to years prior to the pandemic. Much of this investment was by Melbourne Airport in a range of facilities such as roads, taxiways and terminals.
The airports reported a significant increase in both revenues and operating profits for their car parking operations in 2022-23. The four airports collectively earned $337 million in operating profits from car parking activities, an increase of 168 percent on the previous year. All four airports reported operating profit margins above 60 percent for car parking. Landside access revenues also increased as more people used taxis, ridesharing services and other types of transport to get to the airport.
The overall quality of service at each of the airports was rated as ‘good’ in 2022-23. The data underpinning the ratings, which is drawn from surveys of passengers and airlines, as well as objective measures of performance, was collected for the first time since the pandemic.
Earlier this year, the ACCC submitted to the government’s Aviation White Paper process that commercial arbitration should be available to resolve any disputes between airports and airlines over airport charges. “We believe there needs to be greater requirements on airports to provide information to airlines, to address the imbalance of power in commercial negotiations,” Brakey said. “We have also recommended the Aeronautical Pricing Principles be reviewed, including to make them mandatory and enforceable.”
For Editorial Inquiries Contact:
Editor Matt Driskill at matt.driskill@asianaviation.com
For Advertising Inquiries Contact:
Head of Sales Kay Rolland at kay.rolland@asianaviation.com
