Auckland Airport Announces Discounted Airline Charges to Align with Regulator’s Reasonable Return Target

(IN SHORT) Auckland Airport is set to discount its airline passenger charges over the next two years following the Commerce Commission’s final report on Price Setting Event 4 (PSE4). The discounts will adjust charges to approximately $9.00 for regional travel, $12.80 for domestic jet travel, and $38.90 for international travel, reflecting a revised targeted return of 7.82% for the FY23-FY27 period—within the regulator’s deemed reasonable range. Chief Executive Carrie Hurihanganui explained that the discounts come amid softer traffic volumes and challenging economic conditions, with the actual returns expected to be below the target. The Commission’s report commended Auckland Airport for its rigorous investment planning, consultation process, and efforts to ensure competitive pricing in line with global standards. The report also highlighted the airport’s focus on delivering essential infrastructure improvements, such as runway and airfield upgrades, which are critical for long-term resilience and capacity. Additionally, Hurihanganui emphasized that while airline interests may not always align with those of other airport users, the regulatory framework ensures that investments yielding long-term benefits, such as enhanced capacity and lower airfares, remain a priority. The adjustments and continued investments underscore Auckland Airport’s pivotal role as New Zealand’s largest airport and a key asset in national infrastructure development.

(PRESS RELEASE) AUCKLAND, 2025-Apr-1 — /Travel PR News/ — In response to the Commerce Commission’s final report on Price Setting Event 4 (PSE4), Auckland Airport has announced that it will discount its airline passenger charges over the next two financial years. The new pricing adjustments will lower charges for regional travel to an average of about $9.00 per passenger, for domestic jet travel to approximately $12.80, and for international travel to around $38.90. These revised charges reflect a targeted return of 7.82% for the FY23-FY27 pricing period—down from the previous target of 8.73%—which aligns with the range deemed reasonable by the regulator.

Auckland Airport Chief Executive Carrie Hurihanganui stated that the decision to apply these discounts follows the Commerce Commission’s confirmation that the airport’s planned investments are reasonable, competitive with global counterparts, and have been subject to rigorous costing and appropriate consultation. She emphasized that, while softer traffic volumes and challenging economic conditions suggest that actual returns will fall well below the target, the revised prices will ensure a fair balance between delivering necessary infrastructure investments and providing value to airline customers. Hurihanganui noted that the airport’s proactive approach, including discussions following the draft report in July 2024, demonstrates the regulatory regime working effectively. She also highlighted that despite the revised return target, the airport remains committed to delivering essential capital upgrades—such as airfield resilience improvements and runway maintenance—while keeping charges competitive compared to other regulated airports in New Zealand.

The Commerce Commission’s final report praised Auckland Airport’s systematic approach to infrastructure planning and pricing. It recognized that the airport’s investment plan, which has undergone multiple independent reviews and considered alternative designs, is in line with best practices and will enhance the long-term capacity and resilience of New Zealand’s gateway airport. The report also acknowledged that, although airline customer interests do not always represent those of other stakeholders like passengers, the regulatory framework ensures that investments benefiting consumers—such as increased capacity—are prioritized.

Hurihanganui expressed her optimism about the report’s findings, noting that they reaffirm Auckland Airport’s commitment to investing responsibly in critical infrastructure. With a significant portion of New Zealand’s trade passing through its precinct and ongoing major projects such as the integrated terminal programme and airfield upgrades, Auckland Airport remains a cornerstone of national infrastructure, attracting foreign investment and supporting economic growth.

SOURCE: Auckland Airport