Perth Airport maintains service quality despite big financial challenges

Each year the ACCC monitors and reports on a range of measures relating to revenue, profitability and service levels at Australia’s major airports. 

And given the reporting period only covered the first four months of the pandemic, the ACCC is predicting worse results are to come this financial year.

Despite the dramatic fall in passenger numbers, revenue and profitability, the ACCC found that passenger ratings of service quality at Perth Airport had remained in the “good” category, after several years of continuous improvement.

Perth Airport CEO Kevin Brown said the ACCC report highlights the enormous financial challenges facing Australia’s airports.

“We had a good first eight months of 2019-20, but then Covid hit and our passenger numbers simply plummeted: international passenger numbers plunged by 99 per cent, interstate by around 97 per cent,” Mr Brown said.

“Our most recent figures for February of this year show no improvement in international passengers, while interstate passengers were still almost 85 per cent down on February last year.

“As we collect aeronautical revenue on a per passenger basis, this has meant our finances have taken a battering. 

“The ACCC report shows our aeronautical operating profit slumped by more than 47 per cent – and this reflects only the first four months of Covid-19.

“As the ACCC correctly notes, our revenue fell dramatically but the fixed costs of running a major airport remained.

“We’re proud that our team has been able to keep our airport open for business and operating safely and securely, despite suffering significant financial losses. 

“This has allowed our State’s FIFO workforce to keep travelling, ensured our exporters can stay connected to their key markets, and allowed Western Australian families to return home from overseas.

“On top of this our team has maintained our passenger satisfaction rating and once again delivered the best on-time departure performance of any major airport.”

Mr Brown said unlike airlines, Australia’s airports had received little direct assistance from governments outside of JobKeeper support.

“We have welcomed the aviation and tourism support packages offered by the Federal Government but the funds from these have overwhelmingly been directed toward airlines.

“It was also disappointing and inexplicable that while Adelaide, Darwin and Hobart were added as destinations for the government-subsidised half priced air fares, Perth has been left off the list.

“Airports have shouldered more than their fair share of the financial burden of Covid-19 and have remained open so that other industries could both survive and prosper.

“We remain hopeful that the upcoming Federal Budget will redress this imbalance.”

Mr Brown said the ACCC had once again recognised Perth Airports’ commitment to delivering value for money car parking and ground transport options.

“We responded quickly to the changed circumstances of Covid-19 and recognised the needs of FIFO workers who were being asked to work longer swings,” Mr Brown said.

“We got out quickly with an offer of $99 for 99 days of parking in our long-term car parks – a value proposition we have now extended until the end of this year.

“The ACCC report notes that our profit from car parking fell by 26 per cent and will fall even further in this financial year.

“Perth Airport has the lowest parking operating profit per vehicle of any major airport and had the biggest percentage reduction in average prices paid for booking long term parking.

“We also recorded the second lowest increase in drive-up short-term parking prices for stays under one hour (1.4%), and the lowest increase for stays between two and three hours (0.4%). On-line booking prices for short-term hourly parking remained the same.

“We will continue to seek to provide passengers with a range of value parking options, along with alternative ground transport options such as rideshare services.” 

- ENDS -

MEDIA CONTACT:

Corporate Affairs 
Perth Airport
P: +61 8 9478 8877 (24 hour Media Line)
E: [email protected]