TelstraSuper has part ownership of airports in Melbourne, Sydney, Perth, Hobart and Northern Queensland. We also own parts of overseas airports including Gatwick in London, England; Brussels Airport in Belgium and Billy Bishop airport in Toronto, Canada.   

But what’s the appeal of airports? Well, airports are typically attractive investments for long term investors because they generally deliver stable and resilient cashflows, are an essential part of the economy, and usually operate as a monopoly in their geographical area. This means that their revenues are generally more reliable than other types of investments. Airport revenues also tend to be linked to inflation, which means they can increase their prices in line with inflation. This is important in times like these when prices are rising.  

Airports generate income from the fees they charge airlines to land and take-off, but modern airports have become more like shopping malls, deriving significant revenue from the rent they charge to shops and restaurants. They also generate revenue from parking and other transport-related services. This means their revenue has become more diversified and has significant growth potential.  

However, like many other businesses, airports suffered during the COVID-19 lockdowns. But as economies have opened up, people have started to travel , and airports have begun to thrive again. For most of the airports TelstraSuper is invested in, revenues are now rising towards pre-pandemic levels and within a few years, we expect these pre-pandemic levels to be exceeded.

The airports in which TelstraSuper is invested are also doing their bit to respond to the impacts of climate change, with Melbourne Airport recently committing to achieve net zero scope 1 and 2 emissions by 2025* and Sydney Airport making a similar commitment by 2030.

TelstraSuper holds its investment in these airports in our infrastructure asset class, which all of our diversified investment options have exposure to.  So, next time you take a holiday, your travel plans may also contribute to your retirement savings. Sounds like a good reason to treat yourself and get away!

Want to talk about your TelstraSuper investments? Get in touch to receive simple and general advice about your investment options and risk profile at no additional cost to you. If you’d like to discuss your super, contact us on 1300 033 166 or by filling in our online contact form.