While warning of potential fallout from Christchurch's earthquake on Tuesday, AIA is now expecting its full-year after-tax profit to be at the top end of earlier guidance, between $112 million and $118 million, or possibly "a little above".
Chief executive Simon Moutter said the improved outlook came with a caution on any "potential impacts from rising fuel prices or impacts on travel demand, as a result of the Christchurch earthquake disaster".
AIA shares yesterday were up 1c at $2.25. Its dividend is up from 3.5c per share last year to 4c. Total revenue for the six months to December 31, 2010 increased 8.7% to $198.3 million, airfield income increasing 11.7% to $36.653 million.
After more than two years of redevelopment around Auckland airport, with capital expenditure of more than $290 million between 2008 and 2010, AIA's retail sector grew almost 13% to $54.8 million during the half-year to December, Craigs Investment Partners broker Chris Timms said.
"AIA's strong result is due almost entirely to its `concession income' from retail, surpassing our estimates by about $4 million," Mr Timms said.
He also noted a rise of almost 8% in parking income, from $15.9 million for the corresponding period last year to $17.1 million.
Forsyth Barr broker Peter Young also said the result was ahead of expectations with growth in all key areas, including retail, one-off items such as an unrealised property revaluation of $2.3 million, and good performances from associated airports such as Queenstown and Cairns.
"We have been expecting a strong second-half 2011 contribution from the expanded retail operation. However, this has kicked in earlier," he said.
Disruption from the retail redevelopment during 2010 had started to clear in the first half of 2011 and, combined with international passenger growth and increased spend per passenger, this had led to the strong gain, Mr Young said.
International passenger movements at Auckland, including transits, was up 5%, largely due to the improvement in global conditions and strong Asian visitor arrivals, while domestic passenger movements were up 2.6% for the six months.
AIA reported Queenstown Airport had growth of 36.9% in international passengers and 12.1% in domestic passengers; Cairns had 29.4% growth in international passengers and 7.1% in domestic passengers; and Mackay Airport's domestic passenger numbers were up by 13.7%
