In a report released this week, the Commerce Commission found Auckland Airport’s planned capital expenditure, including a new domestic jet terminal, to be reasonable.

However, it also noted that the airport's targeted weighted average cost of capital (WACC) is higher than deemed appropriate.

Auckland Airport Chief Executive Carrie Hurihanganui stated, “We respect the role of the Commerce Commission and will review their feedback. If the final report still finds our WACC too high, we will adjust our pricing accordingly.”

Hurihanganui explained that setting charges involves balancing fair costs for consumers while supporting vital infrastructure investment.

The airport's current charges remain competitive compared to other New Zealand airports, despite increases.

The Commission acknowledged the airport's extensive consultation with airlines and the legitimacy of considering pandemic impacts in its pricing decisions.

However, it highlighted differences in treating the pandemic’s effects compared to the Commission's updated methodologies.

Any adjustments to charges will take effect from 1 July 2025, lasting until June 2027.

The airport aims to ensure that travel remains affordable while enhancing infrastructure resilience and capacity for the future.

Submissions on the draft report are open before the Commission releases its final report in early 2025.