Airport Operations in New Zealand - Industry Market Research Report

Turbulent times: Revenue is on the rise as COVID-19 travel restrictions ease

In recent years, the Airport Operations industry's performance has varied significantly due to the pandemic-induced downturn and subsequent rebound. Before the pandemic, climbing air travel volumes boosted industry demand. In particular, continued growth in international travel to and from New Zealand increased passenger volumes. Cheaper airfares and ongoing efforts by Tourism New Zealand to market the country as a tourist destination supported aircraft movements and passenger numbers at New Zealand's major airports. The industry's three largest airports, Auckland Airport, Christchurch International Airport and Wellington International Airport, all benefited from this trend through higher per-passenger revenue and retail rents. Due to increased aircraft movements, Airways, the government-owned entity that controls air traffic in New Zealand's Flight Information Region, expanded to meet growing demand for monitoring and surveillance. However, due to the pandemic-induced downturn, industry-wide revenue has been falling at an annualised 2.4% over the past five years and is expected to total $1.9 billion in 2023-24, when revenue will jump by an estimated 15.5%. Industry players operate domestic, international and civil airports. Firms operate and maintain airport terminals and runways, and provide air traffic management and baggage handling services. Industry players also rent out surrounding airport facilities to retail businesses. This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.