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🗞️127% Increase in Passengers at Four Major Australian Airports

🗞️127% Increase in Passengers at Four Major Australian Airports

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an empty airport terminal with people walking through it

The aeronautical operations of Brisbane, Melbourne, Perth and Sydney airports returned to profit in 2022-23, the first full financial year since the end of COVID-19 travel restrictions, the ACCC’s latest Airport Monitoring Report shows.

In contrast, all four monitored airports reported losses on their aeronautical operations in 2021-22.

The four airports reported a total of 100.7 million passengers passing through in 2022-23, up 127.4 per cent from the previous year. However, the number of domestic passengers was still 10.4 per cent below 2018-19 (pre-pandemic) levels, and international passengers 31 per cent below.

“Australia’s four largest airports reported a significant increase in aeronautical revenues and a return to aeronautical operating profits in 2022-23, as interstate and international travel restrictions ended and people returned to the sky,” ACCC Commissioner Anna Brakey said.

“The airports stayed open during the pandemic and continued to incur some aeronautical expenses, without their usual level of accompanying revenues. As passengers returned in 2022-23, aeronautical revenues increased more than expenses, which lifted profit margins closer to pre-pandemic levels.” She added

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In 2022-23, Perth Airport had 34.6% aeronautical operating profit margin, followed by Sydney Airport 29.1%, Brisbane Airport 28.8%, and Melbourne Airport 22.9%. Sydney, Brisbane, and Melbourne had lower aeronautical operating profit margins than 2018-19, but Perth showed a slight increase from 34.2%. The four airports invested $559 million in aeronautical operations in 2022-23, a small amount compared to pre-pandemic years. Melbourne Airport invested heavily in roads, taxiways, and terminals. The airports' car parking revenues and operating profits increased significantly in 2022-23. Car parking profits at the four airports rose 168% to $337 million. All four airports had car parking profit margins above 60%. Landside access revenues increased as more people took taxis, ridesharing services, and other modes to the airport. Each airport had ‘good’ service in 2022-23. For the first time since the pandemic, passenger and airline surveys and objective performance measures were used to calculate ratings. The ACCC suggested commercial arbitration for airport-airline fee disputes in the government's Aviation White Paper earlier this year.

We believe there needs to be greater requirements on airports to provide information to airlines, to address the imbalance of power in commercial negotiations,” Ms Brakey said.

“We have also recommended the Aeronautical Pricing Principles be reviewed, including to make them mandatory and enforceable.”

The Aeronautical Pricing Principles set the framework for addressing prices, service delivery and the conduct of airports in negotiations with airlines.

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🗞️127% Increase in Passengers at Four Major Australian Airports

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