Auckland International Airport will reduce passenger charges following a ruling by the country’s Commerce Commission that found the airport was overcharging airlines and travelers. The final report, released on March 31, concluded that the airport’s forecast revenue was excessive, with targeted returns deemed unreasonably high.

Commissioner Vhari McWha stated, “The airport is targeting excess profit of about NZD 190 million, and its charges are too high. Businesses and consumers will likely carry much of the cost burden.”

Reduced Fees for Airlines and Travelers

In response to the report, Auckland Airport will lower its per-passenger airline charges over the next two financial years. The reductions include:

• Regional travel: Down by NZD 1.10 to NZD 9.00
• Domestic jet travel: Down by NZD 1.70 to NZD 12.80
• International travel: Down by NZD 4.80 to NZD 38.90

Despite these cuts, industry representatives remain concerned about oversight and long-term affordability.

Airlines Call for Stronger Oversight

The Board of Airline Representatives’ executive director, Cath O’Brien, criticised the airport’s approach, stating, “Auckland Airport is slightly lowering its target return, just as it did five years ago. Charges will still rise to pay for development over time.”

She also pointed out that airlines operating at the airport since 2023 have already paid higher prices and may not benefit from these reductions. O’Brien stressed the need for greater regulatory oversight, as Auckland Airport controls 75% of flights into New Zealand and relies entirely on airport fees to fund its $6 billion capital plan.

Rising Costs Could Impact Airline Competition

O’Brien warned that increasing fees could reduce airline competition, limiting options for travelers. “Demand at Auckland Airport is flat, partly due to rising costs. In a high-cost environment, airlines may choose to fly elsewhere, meaning customers will have fewer choices and potentially higher fares.”

Auckland Airport Responds

Auckland Airport CEO Carrie Hurihanganui acknowledged the Commerce Commission’s findings and emphasised that the pricing adjustments bring fees within the commission’s acceptable range. She reiterated the airport’s responsibility to balance fair returns for investors with the need to invest in critical infrastructure.

“New Zealand’s gateway airport requires long-term investment for resilience and capacity. To support this, investors need fair returns and a stable regulatory environment,” Hurihanganui said.

Looking Ahead

While the fee reductions provide some relief, concerns remain about ongoing price increases and their impact on airlines and travelers. With competition at risk and costs continuing to rise, the debate over Auckland Airport’s pricing strategy is far from over.