Australian airports have significantly increased their infrastructure investments in 2024-25, with the four largest—Sydney, Melbourne, Brisbane, and Perth—allocating over $1.5 billion toward expanding capacity, upgrading terminals, and developing new facilities. These investments come amid a backdrop of rising profits and concerns about future costs that could impact airline charges and ticket prices.
The Sydney Airport stood out with a record revenue of $584.3 million and a high return on assets of 20.8 per cent, driven partly by international passenger traffic. Conversely, Perth Airport marked the strongest year-on-year profit growth, increasing aeronautical profits by nearly 74 per cent to $130.6 million. Passenger numbers grew overall by 4.6 per cent, primarily supported by international travel, which rose by 9.5 per cent, with Perth experiencing the highest international passenger growth of 17.8 per cent.
Passenger Satisfaction and Profitability
Despite slower passenger growth, satisfaction levels at Sydney, Melbourne, and Perth airports remained high, rated as 'good,' while Brisbane's ratings declined due to ongoing construction impacts impacting service quality. Airports also earned substantial income from car parking, with Brisbane and Sydney generating significant profits from this segment.
The Australian Competition and Consumer Commission (ACCC) continues to monitor the sector, highlighting concerns over airport market power and advocating for regulatory reforms. The report suggests that increased investments and profits could lead to higher charges for airlines, ultimately impacting fares. Calls for a new government inquiry emphasize the need for fair regulation and transparency in financial practices to sustain growth and prevent excessive charges in the future.
