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Auckland International Airport Ltd AIA

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Morningstar’s Analysis

Valuation
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1-Star Price

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5-Star Price

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Economic Moat

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Stewardship

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Overseas Traffic at Auckland and Sydney Airports Near Zero, but Domestic Picking Up; Maintain FVEs

Adam Fleck, CFA Regional Director

Analyst Note

| Adam Fleck, CFA |

Ongoing border closures continue to limit international passenger traffic at both wide-moat Auckland and narrow-moat Sydney Airports. But there is room for optimism, with renewed domestic tourism, local travel bubbles, and vaccines on the horizon. Encouragingly, Auckland Airport’s management noted at its annual meeting that higher domestic travel, and associated business such as car parking, has driven greater first-quarter fiscal 2021 profitability than anticipated. While the timing of border openings remains uncertain, the recent passenger trajectory tracks our near-term forecasts, and we maintain our fair value estimates: AUD 6.20 for Sydney, and NZD 6.50 (AUD 6.00) for Auckland.

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Company Profile

Business Description

Auckland Airport is New Zealand's largest airport, handling approximately 70% of all the country's international visitors. Auckland Airport aims to develop its capacity and services to cope with nearly 26 million passenger movements per year anticipated by 2026. It owns 1,500 hectares of land, and operates commercial facilities, including car parking, warehouses, and offices. The airport also has a substantial retail precinct, including duty- and tax-free retail outlets.

Contact
4 Leonard Isitt Drive, Auckland Airport Business District
Manukau, 2150, New Zealand
T +64 92750789
Sector Industrials
Industry Airports & Air Services
Most Recent Earnings
Fiscal Year End Jun 30, 2021
Stock Type
Employees 300