17/09/2026
As the webinar drew to a close, Saul du Toit underscored a key principle in airport valuation: understanding an airport’s complete operating and financial history is essential when determining its value.
Airport income includes aeronautical revenue, which is influenced by regulated tariffs and a complex regulatory framework. Tariffs may take into account factors such as capital expenditure, investment recovery, an appropriate return based on the cost of capital, and inflation.
The discussion also explored how passenger numbers, infrastructure investment, tariff changes and major disruptions such as COVID-19 can affect an airport’s revenue performance. Historical trading information is therefore essential for understanding the airport’s position at the valuation date and developing informed projections of future performance.
Saul also emphasised the importance of critically assessing an airport’s own budgets and forecasts, rather than simply adopting them at face value. For airport groups, the allocation of corporate and central operating costs is another important consideration, particularly where smaller airports generate limited profits but still carry a share of group-level expenses.
Ultimately, airport valuation extends well beyond the physical infrastructure. It requires an understanding of the airport’s operating model, regulated income, trading history, investment requirements, passenger volumes and capacity to generate sustainable cash flow.
Thank you to Saul du Toit for sharing his expertise and insights, and to everyone who contributed to and joined us for this informative webinar on Valuation of International Airports for Property Rates Purposes. We appreciate everyone’s participation and commitment to professional learning.
