Auckland International Airport Ltd
AIA: XASX (AUS)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$9.50 | Bnnj | Qcjqmls |
Corporate Action: We Recommend Participating in Wide-Moat Auckland Airport’s SPP
The near-term operating environment for Auckland Airport has deteriorated over the past several weeks, with travel restrictions related to the COVID-19 pandemic driving a precipitous decline in passenger volumes. We again lower our fiscal 2020 traffic forecasts, to a 25% decline in fiscal 2020 from 15% previously, with a fall to nearly zero passengers from April to June 2020. We expect global travel to return to normal through 2021 and envision Auckland Airport traffic hitting fiscal 2019 levels in fiscal 2023, a year later than our prior assumption.