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Brisbane Airport among top money spinners

Business

Brisbane airport continues to be a significant money-spinner with its total airport revenue jumping 6.5 per cent last year to $840 million, according to a report from the ACCC.

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It found that Australia’s four major airports continued to report increasing levels of joint profits from aeronautical activities.

It said Brisbane, Melbourne, Perth and Sydney airports collectively earned $863.5 million in operating profit from aeronautical activities in 2018-19, up 3.6 per cent, despite weaker passenger numbers.

On a total airport basis, Brisbane Airport’s operating profit grew by 6.7 per cent to $497.1 million.

Brisbane’s revenue per passenger grew by 11.3 per cent, while Melbourne reported the strongest profit growth at 11.1 per cent.

The airports collectively earned $276.1 million in operating profit from car-parking in 2018-19, down 2.5 per cent. Both Sydney and Melbourne airports earned lower profits than the previous financial year, however Brisbane and Perth airports’ profits increased.

The report showed Brisbane generated $402 million in revenue from its aeronautical business of which $188 million was operating profit. Its car-parking business earned $107 million, of which $72 million was profit. Sydney and Melbourne had car-parking operating profit of $91 million and $77 million respectively.

ACCC chairman Rod Sims said Sydney and Brisbane airports were typically the more expensive airports for short-term parking near the terminals, while Sydney and Perth were generally the more expensive airports for long-term parking away from the terminals. Parking prices generally increased in 2018-19 at Brisbane Airport, while they continued their downward trend at Melbourne Airport.

“We know that consumers are frustrated with the cost of parking at the airport, but there are steps people can take to help secure more favourable rates,” Sims said.

“Last year, motorists who parked at an airport car park away from the terminal paid up to 60 per cent less than those who parked right at the terminal. On top of this, drivers who pre-booked online paid up to 39 per cent less than the drive-up rates available.

“Australia’s four major airports have collectively increased their aeronautical profit almost every year over the 17-year lifespan of the ACCC’s monitoring. This may illustrate the benefit of power of being a monopoly.”

 

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