Australia’s major airports are experiencing a financial boom, with record-breaking aeronautical revenues reported. This is according to the latest Airport Monitoring Report from the Australian Competition and Consumer Commission (ACCC).
Despite passenger numbers still trailing pre-pandemic levels, Brisbane, Melbourne, Perth, and Sydney airports collectively raked in a staggering $2.6 billion in 2023-24.
A Shifting Aviation Landscape
This remarkable 24.3 percent surge in revenue highlights a significant shift in the aviation landscape. The number of domestic and international passengers increased by 13.7 percent since 2022-23.
It has now reached 114.6 million, but it still remains 4.7 percent below the figures recorded in 2018-19.
“The substantial increase in aeronautical revenues during 2023-24 was primarily fueled by the continued resurgence of international passenger numbers.”
“This saw a robust 32.1 percent growth across the four airports we monitor,” explained ACCC Commissioner Anna Brakey. “Furthermore, domestic passenger numbers also contributed to this growth, rising by 6.7 percent.”
Major Australian Airports See Operating Profits Rise
Brisbane, Sydney and Melbourne airports witnessed substantial increases in their operating profits from aeronautical activities. A particularly clear leader in profitability was Sydney Airport.
“Sydney Airport once again demonstrated its dominance, proving to be the most profitable of the four major airports for aeronautical services in 2023-24, both in overall terms and on a per-passenger basis,” stated Ms. Brakey.
Sydney Airport reported an impressive aeronautical operating profit of $570.5 million, representing a 20.2 percent return on its aeronautical assets.
It is important to note that these figures were inflated by back-payments received during the 2023-24 financial year, stemming from contractual agreements with airlines.
Brisbane and Melbourne airports also achieved significant growth, reporting aeronautical operating profits of $194.7 million and $198.9 million, respectively. Both airports saw a 64.1 percent increase in aeronautical operating profit compared to the previous year.
Perth Airport, however, was the outlier, experiencing a 29.1 percent decline in aeronautical profits, falling to $70.7 million. This decrease was attributed to a substantial rise in security and depreciation expenses.
Passenger Satisfaction Levels
Despite the financial fluctuations, all four airports maintained an average overall rating of “good” for the quality of service and facilities. This rating, largely driven by positive passenger feedback, has remained consistent over the past decade.
However, airline satisfaction levels have declined, with all four airports receiving only a “satisfactory” rating. Common concerns raised by airlines included aircraft parking facilities, baggage handling, check-in facilities, aerobridges, and public amenities.
“While the airports have successfully maintained their ‘good’ rating for quality of service, which is based on comprehensive surveys of passengers and airlines, as well as objective measures, the declining satisfaction among airlines indicates that there is room for improvement,” Ms. Brakey emphasized.
Airport Infrastructure Investments
Following a period of reduced investment during the pandemic, Australian airports are now reinvesting in their infrastructure. In 2023-24, $985.1 million was invested in aeronautical facilities, with that amount expected to increase in the coming years.
Melbourne Airport accounted for more than half of the total investment, injecting $502.3 million into projects such as runway overlays, taxiways, and terminal upgrades. This included the replacement of passenger screening equipment and the resurfacing of the north-south runway.
Other major projects underway or recently announced include new runways for Melbourne and Perth. New terminals are planned for Perth and Brisbane, and upgrades to terminals in Brisbane, Sydney, and Melbourne. The highly anticipated Western Sydney Airport is also scheduled to open in 2026.
“Having held back on investment during the pandemic, the four major airports are now responding to increased travel demand,” Ms. Brakey noted.
“These significant capital works are crucial for expanding capacity at our major airports, ultimately providing travelers with more flight options.”
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