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 due to macroeconomic headwinds or unexpected health risks. 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 shareholder distributions to support metrics. Modest scale and catchment compared to Melbourne and Sydney, with some competition from other Queensland airports. We anticipate that international passengers will recover to 100% and 105% of 2019 levels in fiscals 2025 and 2026, respectively, having reached about 90% in fiscal 2024 (ended June 30). Similar to Australian peer airports, this is

...Brisbane Airport Corp. Pty Ltd. (BAC)'s international passenger traffic will support earnings as debt levels escalate to support capex. We anticipate that international passengers will recover to 100% and 105% of 2019 levels in fiscals 2025 and 2026, respectively, having reached about 90% in fiscal 2024 (ended June 30). Similar to Australian peer airports, this is quicker than we previously anticipated and beneficial to BAC given the higher aeronautical charges that international passengers attract, coupled with higher dollar spend rates they exhibit in comparison with domestic travelers. We note that the airport could outperform our forecast in coming years depending on the extent to which international carriers add further services and...

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