Recovery numbers are similar for international capacity and connectivity. Capacity is now at 90% of pre-Covid levels for both Auckland Airport and New Zealand in general.
“We’ve got 26 airlines flying to 42 destinations. That’s one destination short of where we were, and there are two airlines that haven’t yet returned,” says Tasker.
While this is positive, he says New Zealand’s recovery is not yet on a par with the countries that we compare ourselves with.
“We’ve fallen behind. Australia’s international capacity is 99% of its pre-Covid level. Singapore is about the same. Canada, the US and the UK are now operating above 2019 levels. It means there are fewer seats for Kiwis to get out into the world, fewer seats for visitors to come here and less choice.”
It can also potentially mean higher seat prices.
Over the summer carriers have been operating at very high load factors on international flights into Auckland. “It’s been running at 87% which is about as high as it can get across the total system”.
New Zealand outbound travel has, in effect, fully ed, so the gap is with international visitors.
The number of visitors was up during the early part of this summer when compared to the previous summer, yet Tasker says it is only sitting at about 85% of the 2019 level.
His goal is to ensure there are more available seats to get visitor numbers back to pre-Covid levels. It’s not a trivial task given the constraints.
“Air New Zealand accounts for just under half of the international seat capacity at Auckland Airport,” explains Tasker. “We recently heard Air NZ CEO Greg Foran say that in the second half of the year the airline will have 11 of its jet fleet grounded due to engine issues, refurbishing and so on. It means Air NZ seat numbers are not going to grow.
“We need to convince foreign carriers to grow their capacity and connectivity at Auckland.”
China remains an important market. The Chinese carriers are back at Auckland with six airlines flying to six destinations in China.
There are two new routes. Hainan Airlines now flies from Haikou which acts as a hub with connections across China and Southeast Asia. China Eastern added a new route to Hangzhou. Seat capacity on Chinese flights is at 102% of the pre-Covid level. The flights are full. It’s not just Chinese passengers, flights from China also bring visitors from Japan, Southeast Asia and Europe.
The two airlines that have yet to return to Auckland in the post-Covid period are both from Southeast Asia.
“Thai Airways used to operate daily to Bangkok, so that’s a big gap. And then there is the Philippine Airlines route to Manila.”
The other missing piece of the equation is Virgin Australia, which has had a significant presence flying across the Tasman in the past. It still flies direct to Queenstown but is otherwise focused on Australian domestic routes.
Tasker says Auckland Airport is missing about 180,000 Australians who have yet to resume flying to New Zealand.
“They are an important target for our growth agenda. The Prime Minister and Tourism Minister Louise Upston recently made a statement about an investment in an Australian Tourism New Zealand campaign. That’s going to be important.
“Australia is a good place to look for more visitors. We need to have a relevant story for Australian visitors.”
Auckland Airport isn’t just about passengers, it is a vital cargo hub. “Auckland Airport handles a phenomenal amount of cargo. It’s about $26.6 billion of trade a year, of which $17b is essential imports. That’s pharmaceuticals, critical manufactured inputs and ecommerce parcels.
“There’s about $9.2b worth of high value and time sensitive exports. We send lobsters to China, fish from the Chatham Islands and during the summer the pit fruit from Otago.
“We are New Zealand’s third largest port by value and about 91% of all air freight is in and out of Auckland Airport.”
There is a lot riding on just a single runway at Auckland Airport. There are plans for a second runway, but that is some time into the future.
Before then, the airport will need to upgrade the existing runway, but the job must be interleaved with the major terminal upgrade programme.
Upgrades to the main runway will see the current taxiway used for take-offs and landings. This sits nearer to the terminal buildings than the existing runway.
With today’s larger aircraft, there’s not enough safety in between the taxiway and the apron, where planes connect to today’s air bridges or where aircraft push out. A less busy airport could juggle aircraft ground movements, but Auckland is too busy.
All of which goes to explain why the new terminal development is essential to the long-term future of the airport. Tasker says it will add capacity and improve the customer experience, but the airport also needs it for efficient operations. Tasker says: “Not building it would have a massive economic impact on the whole country.”
Another long-term planning issue now emerging is the move to new flying technologies. “Like everyone else, airlines have a decarbonisation obligation. Globally they have said they want to achieve net carbon zero by 2050. That will require different types of propulsion or different types of fuels.
“If domestic carriers start to operate electric aircraft, these will tend to be smaller than today’s aircraft and will probably move slower as well. This could lead to more flights than today, as each flight will carry fewer passengers and move more slowly.
“This could mean we need to build a new runway sooner rather than later.”
Auckland Airport key stats
Domestic capacity is running at 89% of its pre-pandemic levels.
26 airlines flying to 42 destinations.
Seat capacity on Chinese flights is at 102% of the pre-Covid level.
Auckland Airport is missing about 180,000 Australians who have yet to resume flying to New Zealand.
Auckland Airport handles about $26.6b in cargo a year, including $9.2b worth of high value and time sensitive exports. it is New Zealand’s third largest port by value, handling about 91% of all air freight.
Auckland Airport is an advertising sponsor of the Herald’s Project Auckland report.
