Sydney airport flying high last quarter

[Kurt A]

New airline routes have contributed to Sydney Airport operator, Southern Cross Airports, posting a 6.8 percent growth in earnings for the first quarter of 2008.

The first quarter was lucrative for Southern Cross Airports, who reported earnings before interest, tax, depreciation and amortisation of $162.0 million, excluding specific expenses.

Kerrie Mather, the CEO of Southern Cross parent Macquarie Airports, was satisfied with the result.

"Whilst EBITDA pre-specifics growth of 6.8 per cent lagged slightly behind traffic growth of 7.0 per cent, this can largely be attributed to timing differences associated with the recognition of revenue resulting from the new commercial airline charging agreements," she said.

She commended the continuing expansion of airline routes and services from Sydney as a deciding factor in the result.

"During the quarter, both Qantas and Virgin Blue introduced a range of additional domestic services. Cathay Pacific increased services to Hong Kong and Singapore Airlines announced increased frequencies to Singapore.”

She also noted the expected benefits of the Open Skies agreement, with new services to North and South America expected from V Australia and Qantas.

The previous equivalent period recorded total revenue from all business units of $200.7 million, a 7.6 percent increase.

The expansion of domestic and regional services by Virgin Blue and Jetstar has accounted for the growth of domestic profits by 7.6 percent this quarter.
Ms Maher continued to demonstrate how Southern Cross were dedicated to investment across all their businesses.

"Capital expenditure during the first quarter was $74 million, with some $69 million in growth expenditure including the international multi-storey car park, International Terminal redevelopment and New Large Aircraft works," she said.

The ongoing upgrades in passenger processing, baggage handling and retail services at the International Terminal aims to “ultimately provide a significantly enhanced travel experience for passengers, ensuring Sydney retains its status as a world class airport," she continued.

-etravel