Airport passenger movements fall
The ripple effect from the commodity downturn has spread to Perth Airport, with a major credit ratings agency warning gloomy times could impact on the airport's credit outlook.
Last week, Perth Airport reported its first fall in quarterly passenger numbers in 12 years.
In 2011 and 2012 Perth Airport was the fastest growing terminal in the country, as WA's Pilbara workforce boomed with a flurry of projects under construction.
The total number of passenger movements fell by only 33,500 in the March quarter, from a total of 3.4 million. But Moody's Investors Service senior analyst Spencer Ng warned the slight fall could be a sign of worse to come, putting the blame squarely on the mining industry downturn.
"The drop was mainly the result of lower domestic passenger traffic, which comprises around two-thirds of total passenger numbers, driven by a slowdown in mining activity in Western Australia," Mr Ng said.
"We believe the decline is an inflection point for Perth Airport and indicates the end of high growth for the airport."
Mr Ng said the fall was a "credit negative" for Perth Airport, at a time it was taking on debt to fund the final stages of its expansion.
As well as direct charges to airlines for passengers using terminals, the airport could suffer a fall in parking and rental revenue, he said. Job losses and a slower WA economy could hit international passenger numbers.
Mr Ng said Perth Airport still had a solid financial profile, but might need to defer non-essential capital spending or reduce dividends to protect its credit profile.
Perth Airport chief executive Brad Geatches said passenger numbers had been declining for the past 12 months because of the construction slowdown in WA's resources sector.
"The favourable economic conditions that have driven demand for our services are giving way to a more subdued-demand environment," he said.
"While we cannot fall into the trap of failing to be ready for the next upswing in demand for our services, we will ensure we are effectively managing operating costs and staging our capital expenditure appropriately."
