Aug. 28 (Bloomberg) -- Auckland International Airport Ltd., New Zealand’s largest, reported a 51 percent slump in second- half profit as the global recession slashed domestic and international travel and property values slumped.

Net income fell to NZ$31.9 million ($22 million) in the six months ended June 30, from NZ$65.4 million a year earlier. Earnings were calculated by deducting first-half results from the NZ$41.7 million full-year profit reported today. Six-month pretax operating earnings were little changed at NZ$141.2 million.

Auckland Airport, the arrival point for more than 70 percent of the nation’s visitors, is trimming costs and delaying investment in terminals to match the slump in passenger growth. Work on a second runway will be slowed by a year to save funds, the company said today.

“Global travel demand conditions are unstable and passenger volume growth remains uncertain,” Chief Executive Officer Simon Moutter said today in a presentation. “We are unsure if we’re through the worst.”

Auckland Airport rose 1 cent, or 0.6 percent, to NZ$1.76 at the 5 p.m. close of trading in Wellington.

Excluding a NZ$64.6 million decline in property values and restructuring costs, full-year underlying earnings rose 2.1 percent to NZ$105.9 million, the airport said. Earnings of about NZ$102 million on that basis were expected, based on the average of eight analyst estimates collated by Bloomberg.

Profit for the current year excluding such items will likely range from NZ$93 million to NZ$100 million, Moutter said.

Revenue Mix

The airport gets about half its revenue from passenger charges, landing fees and terminal charges. They were barely changed in the second half from a year earlier at NZ$81.2 million, with higher airline fees and more flights to and from Australia helping offset a slump in domestic and long-distance travel.

Internal flights dropped 8.4 percent from a year earlier. International services climbed 2.9 percent, reflecting new routes offered by Emirates, Qantas Airways Ltd.’s Jetstar unit and Virgin Blue Holdings Ltd.

Non-aviation revenue rose 6.5 percent to NZ$104 million, with gains in rents, parking and retail concessions helping offset a 4.8 percent decline in total passenger numbers.

Capital spending the past year fell about 38 percent to NZ$87 million, and is forecast at around NZ$60 million to NZ$65 million for the current year, Moutter said.

To contact the reporter on this story: Gavin Evans in Wellington at gavinevans@bloomberg.net

Last Updated: August 28, 2009 01:05 EDT