THAILAND. Airports of Thailand (AOT) has reported a -6.9% fall in non-aeronautical revenue for the year ended 30 September, with the figure reaching THB33.6 billion (US$1.03 billion).
Within this, concession income slid -7.6% year-on-year to THB21.3 billion (US$657 million), with AOT highlighting a sharp decline in duty-free concession revenues as a key factor.
The figures show the full-year impact of the move by the Ministry of Finance to scrap arrivals duty-free shopping across the country’s airports from 1 August 2024, alongside a tough market for spending in departures duty-free.
Total AOT revenue climbed +1.1% to THB68.6 billion (US$2.1 billion) in the year. Net profit fell -5.5% to THB18.5 billion (US$571 million).
Thailand’s six major airports served 126 million passengers in the year, an increase of +5.6% year-on-year. This included 76.6 million international passengers and 49.4 million on domestic routes.
As reported in late October, AOT has chosen to negotiate with its anchor commercial tenant, King Power Duty Free, over revised contractual terms.
In a statement to the Stock Exchange of Thailand on 30 October, AOT said a Board of Directors meeting had resolved to approve solutions to financial issues facing three King Power duty-free concessions – Suvarnabhumi Airport, Bangkok; Don Mueang Airport, Bangkok; and (collectively) Phuket, Chiang Mai and Hat Yai airports.
Any solution will be based on a soon-to-be appointed consultant’s report. The results will serve as a “framework for negotiation with King Power Duty Free for AOT’s maximum benefits while ensuring fairness to the contracting party”, the airport company said last month.
In its results statement today, AOT said, “The negotiation results will be proposed to the AOT Board of Directors for consideration afterwards. However, it is currently in the process of negotiating with the contracting party. While awaiting the outcome of the negotiations, AOT still has the right to collect concession revenues according to the terms of concession contract.” ✈
