Morningstar says unchanged regulation to support Auckland Airport's capex

Auckland International Airport

17/07/2025 19:39

** Morningstar expects Auckland International Airport AIA.NZ to devote nearly NZ$6 billion ($3.56 billion) towards capital expenditure over the next five years

** Says decision by the New Zealand Ministry of Business Innovation and Employment (MBIE) to leave 'relatively accommodative' regulations unchanged to support airport operator's capital investment program

** Highlights that co's current investment program to protect its position as NZ's 'primary gateway for decades to come'; points out AIA's near-monopoly position in a stable regulatory environment

** The investment research firm moreover believes shares to be undervalued, maintains fair value estimate of NZ$9.30 per share

** Shares closed 4.3% higher on Thursday following MBIE decision, trims YTD losses of 10.7%

($1 = 1.6878 New Zealand dollars)

 (Reporting by Nichiket Sunil in Bengaluru)

 ((Nichiket.Sunil@thomsonreuters.com))