Adelaide Airport releases details of $1bn infrastructure plan
Artist’s impressions reveal the how the facility would change as it adds more gates, more security and more drop off lanes.
Giuseppe Tauriello
@gtauriello
3 min read
November 1, 2023 - 1:54PM
The Australian Business Network
Artist's impression of what Adelaide Airport could look like as part of its Vision for 2050 ambition. Picture: Supplied by Adelaide Airport
An expanded check-in hall with beefed up security area, more gates and a second pick-up and drop-off lane are part of a $1bn investment pipeline unveiled by Adelaide Airport.
The airport has released details of its five-year spending plan in its latest integrated report, with more than $500m set aside for aviation infrastructure projects designed to increase capacity as passenger numbers near a full recovery to pre-pandemic levels.
About half a billion more will be spent on property developments across the airport precinct.
The boost in passenger numbers has underpinned the airport’s financial recovery, with a 69.9 per cent jump in revenue to $251m reported for the 12 months to June – the first full year since Covid-19 restrictions were removed.
Aeronautical revenue – representing fees charged to airlines based on passenger numbers – soared 109 per cent to $121.4m as travellers returned to the skies, while carparking revenue and rental income from retailers in the terminal both almost doubled to $33.6m and $28.7m respectively. Net profit was up 91 per cent to $43.6m.
Total passenger numbers reached 7.8 million in 2022-23, reflecting a 91 per cent recovery against 2019 levels, with domestic and regional volumes at 95 per cent of pre-Covid levels and international passenger numbers lagging at 66 per cent.
However by the first quarter of the new financial year, international passenger numbers had increased to 87 per cent of pre-Covid volumes and domestic and regional travel through the airport had surged past pre-pandemic levels.
Artist's impression of how the Adelaide Airport plaza could look as part of the airport’s Vision for 2050 plan. Picture: Supplied by Adelaide Airport
A billion dollars worth of investment is planned. Picture: Supplied by Adelaide Airport
To support more growth expected over the next five years, the airport is planning a series of upgrades described as its “single biggest ever capital investment program”.
More than $500m will be spent on aviation infrastructure projects including:
AN expanded check-in hall with upgraded security screening technology;
TERMINAL pier expansions north and south to create more gates;
A SECOND kerb-side pick-up and drop-off lane; and
MORE space for aircraft parking.
The rest of the $1bn of investment will go towards property developments within the wider airport precinct, as well as other projects including a new ground-level car park for medium-term parking between the existing multistorey car park and the Bunnings and Ikea stores.
A view looking towards the city. Picture: Adelaide Airport
Adelaide Airport managing director Brenton Cox said he was expecting significant growth in passenger numbers over the next five years due to pent up demand from travellers, and upgrades were needed to keep pace with the expected surge in travel.
“We’re at volume levels just below where we were pre-Covid, and certainly our growth rates over the coming five years are going to be higher than historic averages because of the amount of catch up that’s occurring,” he said.
“Interestingly, that’s in an environment where there are a fair few global headwinds with geopolitical uncertainty, we’ve got flagged global recessions and consumer crunches in Australia. We factor those things into account with our forecasting, and even with those significant headwinds, the strength of the recovery and the desire to travel is outweighing those factors at the moment.”
While major international carriers Qatar Airways and Singapore Airlines recently announced major expansions to their Adelaide services, Mr Cox said the return of Emirates, China Southern and Cathay Pacific remained a priority following their departure from Adelaide during the pandemic.
Emirates has announced plans to reinstate services in the middle of next year, and Mr Cox said he was hopeful China Southern would follow suit before the end of next year, followed by Cathay Pacific in early 2025.
He also said the airport was working with Qantas on options for the national carrier to reintroduce direct flights from Adelaide, 10 years since it axed its last direct service to Singapore.
