Perth Airport records loss after 8.6 million passenger drop

04 November, 2021

Perth Airport has revealed the full financial impact of Covid-19 on its operations, recording a $64.5 million loss in FY21 – the first ever loss in the company’s history.

The loss represents a 163 per cent fall on the net profit after tax recorded in FY19 ($102.4m) - the last full financial year where there was no Covid travel restrictions. It was also down on the FY20 profit of $56.7m, with that year only partially impacted by Covid restrictions for four months.

Passenger numbers have plummeted on FY19 pre-Covid levels with the airport recording a drop of more than 8.6 million passengers.

International passenger numbers dropped 97.4 per cent, while interstate passenger numbers were down 77.1 per cent on pre-Covid levels. Regional passenger numbers showed a slight increase (4 per cent), due to continued FIFO operations and more Western Australians choosing to holiday at home due to concerns over potential border closures.

Non-security aeronautical revenue (down 65 per cent), retail revenue (down 85 per cent), and ground transport revenue (down 45 per cent) have all fallen dramatically from the FY19 pre-Covid levels.

Due to the high fixed costs associated with running a 24/7 airport safely and efficiently, Operating Expenses were only able to be reduced by 16 per cent over the same period.

This meant that on a per passenger basis, Perth Airport’s aeronautical margin had fallen into negative territory for the first time at -$5.98.

Perth Airport CEO Kevin Brown said the airport had been financially battered by Covid-19 but had weathered the storm.

“We knew that Covid travel restrictions would hit us hard and last April our passenger numbers simply fell off a cliff,” Mr Brown said.

“As we generate aero revenue on a per passenger basis, we understood that FY21 was going to be a huge challenge for our Team, both operationally and financially.

“But we were determined to do the right thing by Western Australia and keep our terminals and runways open to ensure FIFO flights could continue to operate.

“This also allowed freight in and out of the State and ensured Western Australians could return home safely from overseas.

“The negative aeronautical margin tells that story that each time we have put a passenger on a flight to help the WA economy, it has cost the airport money.

“Despite the losses we’ve faced, we have stepped up and played our role in the continued economic success of Western Australia during the pandemic. Our team members have been the quiet heroes of this economic success story and we are incredibly proud of what they have achieved." Mr Brown said Perth Airport had continued to invest in the future during the pandemic.

“We have always kept a keen eye on the future and have continued to invest in projects to benefit our airline partners and our passengers,” Mr Brown said.

“We have invested $8 million in new self-service check-in processes in T1 International using technology that can be adapted to use biometrics, reducing touch points on the passenger journey.

“International passengers will also benefit from a streamlined boarding process thanks to a $36 million investment in three new boarding ramps, to replace the old stairs at Gates 52, 53 and 54.

“We have also made significant progress on the sustainability front with a new Environment, Social, People and Governance Strategy which commits the airport to achieve zero net carbon emission
by 2030 (Scope 1 and 2 emissions) and will deliver major cuts in waste streams.” Mr Brown said post-Covid recovery in the aviation sector would be pivotal to ensuring Western Australia’s continued economic growth.

“We have worked hard to keep international airlines connected to Perth despite the huge financial challenges they have faced, but we have lost a number of those connections,” he said.

“Western Australia will need to put an enormous effort into re-establishing those pre-Covid links and capacity to ensure we don’t fall behind east coast states. We will work with and seek the support of the WA government to go about this task strategically and rigorously.

“We have already seen the NSW government put up more than $60 million for airline attraction efforts in that State, with more than $250 million in complementary funding for tourism and attractions -
so we understand what we are up against.

“With every State competing for international airline capacity, we will need to invest the time and dollars required to make sure Western Australia can regain our fair share of the market.”

- ENDS -

Table 1: Perth Airport passenger numbers

	FY19	FY20	FY21	% to pre-Covid
International	4,360,965	3,293,036	110,963	-97.4%
Interstate	5,872,257	4,400,911	1,342,579	-77.1%
Regional	4,263,632	3,997,510	4,436,383	+4.1%
TOTAL	14,496,854	11,691,457	5,889,925	-59.4%

Movements	131,961	118,360	97,759	-25.9%

Table 2: Key results from FY21 ($million)

	FY19	FY20	FY21
Aero revenue (non-security)	187.9	156.6	66.3
Retail revenue	52.5	42.2	7.7
Ground Transport Services	85.8	71.1	47.2
EBITDA	359.5	197.8	130.9
Net Profit after tax	102.4	56.7	(64.5)

MEDIA CONTACT:
Corporate Affairs
Perth Airport
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