This year saw our industry confront new and ongoing pressures. Post-pandemic recovery in the aviation sector has been uneven. The effects of global economic uncertainty, fluctuating demand, and evolving community expectations have required us to respond with flexibility and resilience. Throughout these difficulties, Airservices has stayed focussed on maintaining the safety of Australian skies and the effective delivery of air traffic management services.
Safety continues to be the bedrock of everything we do at Airservices. In 2023–24, we maintained our strong safety performance, with zero significant attributable safety occurrences recorded. This achievement does not signal complacency. Safety, particularly in a rapidly evolving aviation sector, is not a static measure but an ongoing commitment.
This year air traffic movements increased by 2.5% including a 29% rise in international. This rapid growth placed pressure on our resources and capacity during periods of heightened demand, particularly during December 2023 and January 2024, requiring us to manage increased traffic under challenging circumstances. Demand is less predictable and more diffuse than before the pandemic, with 70 new domestic routes added to the network this year.
Our Aviation Rescue and Fire Fighting services maintained service availability of 99.7% across our network. This high level of performance is a testament to our team’s dedication and professionalism, putting safety and reliability at the forefront of all that they do.
The sharp decline in air traffic during the pandemic resulted in significant financial challenges from which we are still recovering. In 2023–24, we recorded an underlying net loss after tax of $162 million, representing a 21% improvement year on year. Our return on assets for the year was -8.1%, below our target of -7%, as we continued to navigate volatility in traffic volumes and increasing operational costs.
In response to these financial pressures, we have taken decisive steps to manage our costs while continuing to invest in future services. Our strategic investments, particularly in infrastructure, operational resilience, and sustainability initiatives, are key to our future performance and reliability. We are confident that, as the industry stabilises, these forward-looking investments will enable us to achieve greater financial stability while delivering enhanced value to our customers and stakeholders.
Technology and innovation will play a critical role in shaping the future of air traffic management. One of the key areas of focus this year has been the development of digital and automated services. The Western Sydney International (WSI) Airport project is central to these efforts, as we work with stakeholders towards a planned opening in late 2026. WSI will be Australia’s first airport built without a traditional air traffic control tower, instead using state-of-the-art cameras to provide offsite air traffic controllers with an enhanced 360° view. We are also deploying this technology at Canberra Airport, with operations scheduled to begin in 2025.
We continue to work towards operationalising uncrewed services, a crucial step in safely integrating unmanned aerial systems such as drones and electric air taxis into Australian airspace. In preparation for this, we are developing the Flight Information Management System (FIMS), a digital platform that will be the backbone of our safe and efficient uncrewed aircraft traffic management ecosystem.
A key program shaping future operations for Australian aviation is OneSKY. In partnership with Thales Australia, the development of the Civil Military Air Traffic Management System (CMATS), will provide a shared view of Australian-administered airspace to both Defence and civilian controllers. This year we have executed the CMATS remediation plan, with significant milestones being reached. The scope is vast, covering national infrastructure upgrades, air traffic management technology, and the transition of our workforce onto new technology.
This coordinated approach to air traffic management is critical for future-proofing our systems and ensure Airservices remains at the forefront of aviation management, not just in Australia but globally.
Our commitment to achieving net-zero carbon emissions by 2050 remains central to our long-term strategy. This year we delivered targeted initiatives, particularly within our core facilities with installation of solar panels at the Brisbane Air Traffic Services Centre allowing us to partially offset our electricity consumption. In the coming years, we will continue to invest in renewable energy, optimise flight path planning for fuel efficiency, and explore other opportunities to further decrease our environmental footprint.
Airservices operates at the intersection of industry performance and community expectations, and we take seriously the need to engage with the public on the environmental and social impacts. Over the past year, aircraft noise has remained a central concern for communities living near major airports. While noise is an inherent by-product of aviation operations, it is our responsibility to minimise its impact wherever possible and engage in open dialogue with affected residents.
In 2023–24, we made important progress in this area, particularly through the development and implementation of the Noise Action Plan for Brisbane. Developed in close consultation with local stakeholders, it aims to address community concerns related to Brisbane’s parallel runway operations. The plan includes initiatives to reduce the use of specific flight paths during sensitive times, and its implementation will be phased in over the coming year. We also continued to engage with communities in other regions, particularly Perth, Melbourne, Hobart and Sydney, where airspace and flight path changes are being considered.
These engagements are part of our broader efforts to ensure that community concerns are not only heard but are reflected in the decisions we make.
In 2023–24 we negotiated with our teams and their representatives to secured new enterprise agreements with our corporate, air traffic control (ATC) and aviation rescue fire fighting (ARFF) services employees that recognise their hard work while providing certainty for coming years.
However, there are still areas where we must improve. Our employee engagement score, which came in at 59%, fell short of our 70% target. This result is a reminder that there is more work to be done to create a workplace where employees feel engaged and supported. We continue to invest in our people with a focus on tangible improvements in workplace culture.
As we look toward the future, it is clear that the aviation industry is in a period of significant transformation. The ongoing recovery in traffic volumes, coupled with increased demand for more sustainable operations and rising community expectations, presents both challenges and opportunities for Airservices Australia.
We extend our sincere thanks to our workforce, whose dedication and resilience have been critical in maintaining service continuity during a challenging period. We also acknowledge the support of our stakeholders, including our industry partners, regulators, and the Federal Government.
John Weber
Board Chair
Rob Sharp
Interim Chief Executive Officer