Auckland Airport cancels interim dividend for FY20

Market Release | 17 March 2020

Auckland Airport cancels interim dividend
for FY20

Auckland Airport has announced the cancellation of its interim dividend payment following
recent developments in the outbreak of COVID-19.
Chief Executive Adrian Littlewood said Auckland Airport had made the difficult decision
following further information from airlines about the expected number of flight cancellations.
This included an announcement from Air New Zealand that it plans to reduce its international
and domestic capacity in the coming months.
“This decision has not been taken lightly, but our businesses are very closely linked, and
when airlines reduce fly ing and fewer people travel, our revenues fall too. As this happens,
we will act fast as an organisation to reduce spending and cut costs.
“As a result, we have decided that continuing with this year’s interim dividend payment (11c
per share) on 3 April would not be in the best interests of the company. We realise some of
our shareholders may be disappointed, but we ask for their understanding amid these
extremely challenging circumstances,” said Mr Littlewood.
A wide range of cost cutting measures have been introduced at Auckland Airport this week,
including a hiring freeze, a suspension on all discretionary spending and a review of work
underway with external consultants. In addition, Management is reviewing its capital
expenditure programme and the Board has decided to reduce directors’ fees by 20%, while
Mr Littlewood has volunteered to cut his salary by 20%. These changes will remain in place
for the rest of the financial year.

“This continues to be a dynamic situation, and our focus remains on maintaining the airport
operation and supporting the Ministry of Health and border agencies in protecting New
Zealand against the spread of COVID-19,” said Mr Littlewood.
Auckland Airport yesterday announced it had suspended earnings guidance for the year to
30 June 2020. Further market updates will be issued as significant new information emerges.
ENDS

For further information please contact:

Investors:
Head of Strategy, Planning and Performance
Stewart Reynolds
+64 9 257 7059
stewart.reynolds@aucklandairport.co.nz

Media:
Head of Communications and External Relations
Libby Middlebrook
+64 21 989 908
libby.middlebrook@aucklandairport.co.nz