Click to enlargeAustralia's four largest airports, Brisbane, Melbourne, Perth and Sydney, each reported their highest ever aeronautical revenues in 2023-24, the ACCC's latest Airport Monitoring Report shows.
Airport monitoring report 2023-24 key results
The 24.3 per cent increase in revenues to $2.6 billion occurred despite the four major airports collectively handling fewer passengers than before the pandemic. While domestic and international passengers grew by 13.7 per cent to 114.6 million since 2022-23, passenger numbers remained 4.7 per cent below 2018-19 levels.
"The increase in aeronautical revenues in 2023-24 was driven in large part by the continued recovery in international passenger numbers, which rose by 32.1 per cent at the four airports monitored in our report," ACCC Commissioner Anna Brakey said.
"Domestic passenger numbers also grew by 6.7 per cent."
Sydney, Brisbane and Melbourne airports also substantially increased their operating profits from aeronautical activities in 2023-24.
"Sydney Airport was once again clearly the most profitable of the four major airports for aeronautical services in 2023-24, both in aggregate and on a per-passenger basis," Ms Brakey said.
In 2023-24 Sydney Airport recorded an aeronautical operating profit of $570.5 million, which represented a 20.2 per cent return on its aeronautical assets. Sydney Airport advised that both its aeronautical revenues and operating profits in the year were inflated by back-payments received during the 2023-24 financial year from its contractual agreements with airlines. The agreements started on 1 July 2022, but the terms were not agreed to until the 2023-24 financial year.
Brisbane and Melbourne airports reported aeronautical operating profits of $194.7 million and $198.9 million respectively, despite Brisbane Airport catering to far fewer passengers than Melbourne Airport. Both airports reported a 64.1 per cent increase in aeronautical operating profit in 2023-24.
Perth Airport was the only monitored airport to report a fall in aeronautical profits, down by 29.1 per cent to $70.7 million after a significant increase in security and depreciation expenses.
Car parking profits and 'landside access' revenues up
Operating profits from car parking grew for all four airports in 2023-24. Brisbane Airport made the largest profits, increasing by 21.1 per cent to $113.4 million. Melbourne Airport made an operating profit of $108.1 million from car parking, followed by Sydney Airport with $95.6 million and Perth Airport with $70.7 million.
All four monitored airports reported operating profit margins above 60 per cent for the second year in a row for their car parking operations.
"Car parking remains a very profitable business for the monitored airports as they report strong demand for parking," Ms Brakey said.
"Brisbane Airport made an operating profit of 76.6 cents for every dollar of revenue it collected from car parking."
Sydney Airport was the most expensive for 30 to 60 minute parking and parking for up to 24 hours at the terminal, while Melbourne Airport was the cheapest in both categories.
Long-term parking at a distance from the terminal booked online was most expensive at Perth and Sydney airports and cheapest at Melbourne Airport.
"To save money, motorists are encouraged to book online, if possible, instead of paying the drive-up rates, and should consider using free waiting zones at the airports," Ms Brakey said.
Revenues from landside transport access services, such as rideshare operators, taxis and buses, grew by 18 per cent to $69.6 million, as vehicle numbers rebounded. All four airports continued to report a growth in rideshare services.
Airports maintain their 'good' quality of service rating, despite falling satisfaction from airlines
All four airports maintained an average overall rating of 'good' for the quality of service and facilities in 2023-24.
These results were mainly due to high ratings by passengers, continuing consistent trends over the last 10 years.
Ratings by airlines generally fell, and all four airports received only a 'satisfactory' result. The most common airline concerns related to aircraft parking facilities, baggage facilities, common user check-in facilities, aerobridges and public amenities.
"The airports all maintained their 'good' rating for quality of service, which is based on surveys of passengers and airlines, as well as objective measures such as the number of check-in kiosks per passenger," Ms Brakey said.
"However, the falling satisfaction from airlines indicates the airports have some work to do."
Airports have recommenced investment after Covid
After years of relatively little investment due to the pandemic, the airports have invested $985.1 million in aeronautical facilities in 2023-24, a figure set to increase in coming years.
Melbourne airport's $502.3 million investment accounted for more than half the total investment in aeronautical assets in 2023-24. This included work on runway overlays, taxiways and terminals, such as the replacement of passenger screening equipment as well as works to resurface the north-south runway and replace the lighting system.
Other major projects underway, or recently announced, include new runways for Melbourne and Perth, new terminals for Perth and Brisbane, upgrades to terminals in Brisbane, Sydney and Melbourne.
A new airport will also open at Western Sydney in 2026.
"While the four major airports held back on investment during the pandemic period, this is starting to change now there is more certainty around demand for travel," Ms Brakey said.
"These significant capital works should help increase capacity at our major airports, leading to more flight options for travellers."
Background
Under direction from the Australian Government, the ACCC monitors the prices, costs and profits of aeronautical and car parking services at Australia's four largest airports. The ACCC also monitors the quality of these services under the Airports Act.
The possible ratings for airport quality of services are 'very poor', 'poor', 'satisfactory', 'good' or 'excellent'.
The ACCC measures operating profit by earnings before interest, taxes and amortisation (EBITA). Operating profit margin is EBITA as a percentage of revenue.
Aeronautical operations are those that directly relate to providing aviation services, including runways, aprons, aerobridges, departure lounges and baggage handling equipment.
