Auckland International cuts passenger fees following regulatory report

New Zealand’s busiest airport, Auckland International has cut its airline passenger charges, following a report published by the country’s competition watchdog which detailed how the airport has overcharged passengers and airlines.

The airport said in a statement on March 31, 2025, that over the next two financial years, it will discount per passenger airline charges on an average basis by about NZ$1.10 ($0.63) for regional travel, NZ$1.70 ($0.97) for domestic jet travel and on international travel fees will be reduced to $38.90 ($22.11). On average, these reductions will see fees decline by an average of 11.2% across all passenger markets.

The New Zealand Commerce Commission noted that the airport is targeting excess profit of about NZ$190 million ($108.3 million) and that its charges are too high.

The excess profit represents a targeted return of 8.73% from priced aeronautical activities, such as aircraft landing and passenger terminal charges, compared to the commission’s estimated reasonable return of between 7.3% and 7.8%.

The watchdog however stated that despite the airport’s forecast revenue being excessive and its targeted returns being unreasonably high, its forecast investment falls within a reasonable range.

“When it comes to costing its investment plan, the airport followed appropriate processes,” said Vhari McWha, commissioner at the Commerce Commission.

The airport plans to invest in replacing its almost 60-year-old existing domestic terminal building by integrating it with its international terminal, providing capacity for long-term growth in passenger numbers. This integrated terminal programme is now 31% advanced and has over 1000 people employed on the project.