Brisbane Airport Corp. Pty Ltd.

Overview Key strengths Key risks Strong market position as the primary gateway airport to the city of Brisbane and the state of Queensland. Slower traffic growth than forecast, mainly international, due to macroeconomic headwinds. Diverse revenue mix with an even split between aeronautical and non-aeronautical revenue. Elevated capex pipeline over the next five years. Flexible capital expenditure (capex) pipeline and dividends to support metrics. Modest scale and catchment compared to Melbourne and Sydney, with some competition from other Queensland airports. Total traffic for fiscal 2023 (ended June 30) was 84% of the level in fiscal 2019. This was in line with our estimates. In fiscal 2023, domestic traffic recovered to about 92% and international traffic to about 65% of 2019

...Brisbane Airport Corp. Pty Ltd. (BAC)'s domestic traffic has staged a strong recovery, while we expect international traffic to strengthen over the next 12 to 24 months. Total traffic for fiscal 2023 (ended June 30) was 84% of the level in fiscal 2019. This was in line with our estimates. In fiscal 2023, domestic traffic recovered to about 92% and international traffic to about 65% of 2019 levels. The recovery in domestic traffic was consistent with that at other Australian eastern seaboard airports and our forecasts, while international traffic was weaker. This was mainly due to delayed airline capacity from north Asia, particularly China, which is expected to recover later in 2023. As a result, we anticipate a slightly delayed recovery in traffic to pre-pandemic levels for BAC. Our assessment considers macroeconomic headwinds, still high airfares, and lagging international airline capacity. Domestic and international traffic will reach pre-pandemic levels sometime in fiscal 2026, in our...

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