HONG KONG. Hong Kong International Airport’s (HKIA) retail and advertising revenue hit HK$2,144 million (US$275 million) in the six months to 30 September 2011, climbing an impressive +28% year-on-year, Airport Authority Hong Kong reported today. The company said that increased spending power allied to healthy traffic growth contributed to the strong performance at the Retail & Advertising division.
Other terminal commercial revenue rose from HK$400 million last year to HK$429 million (US$55 million) in the same period in 2011.
For the company as a whole, revenue and profit attributable to equity shareholders increased +15% and +24% respectively from the same period last year, to HK$5,921 million (US$760 million) and HK$2,432 million (US$312 million).
Fuelled by the sustained economic growth on the Chinese Mainland, which has benefited the Hong Kong economy, passenger throughput and aircraft movements at HKIA continued to grow steadily during the period under review. A total of 27.6 million passengers and 168,160 aircraft movements were recorded in the first half of fiscal 2011/2012, up +6% and +9% respectively from a year earlier.
Cargo volume declined by -7% to about two million tonnes in the same period due to soft market demand and a volatile global economy.
Airport Authority Chief Executive Officer Stanley Hui Hon-chung said: “Strong passenger traffic and aircraft movements at HKIA led to increased turnover from airport charges, and increasing spending power of passengers boosted retail revenues significantly, by +28% over the same period last year.”
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Hui said he remained confident that air traffic would continue to grow over the second half of the fiscal year, though at a slower pace. He also cautioned that the intensifying European debt problem and growing uncertainties in the global economy could hit foreign trade between the Mainland and the rest of the world, exerting greater pressure on air cargo performance.
Hui said: “Although some economists believe that an economic recession appears probable in the near term, we are optimistic about the long-term prospects of HKIA as Hong Kong further integrates with the Mainland, which is the powerhouse of global economic growth.
“To meet anticipated growth demand in the medium term and maintain a reliable, safe and quality service, we began Phase 1 of the midfield development in the third quarter of 2011. We have also embarked on a three-year, HK$496 million rejuvenation programme to overhaul several of the existing airport utilities, such as airfield ground lighting, loading bridges and the baggage handling system.”
Executive Director, Finance William Lo added: “Over the past years, AAHK has set a good track record of maintaining prudent financial discipline in managing HKIA. We continue to invest in airport facilities to meet increase in demand and enhance service standards. Containing operating costs will remain one of our highest priorities given the high inflation environment in Hong Kong.”
During the period under review, AAHK completed a three-month consultation for the Hong Kong International Airport Master Plan 2030 to solicit views of the general public and stakeholders on the long-term growth direction of HKIA. AAHK will make its recommendations on the preferred development direction to the Government by the end of the year.
Six new airlines, namely Mega Maldives, Air Busan, Mongolian Airlines, Tianjin Airlines, Airphil Express and Nordic Global Airlines, began operations at the airport between April and September this year, while Male and Ulan Bator were added as new destinations during the period. With these new additions, there are more than 100 airlines operating over 900 flights a day to approximately 160 destinations worldwide from HKIA.
Meanwhile, the number of passengers using the airport’s cross-boundary ferry services at SkyPier, which covers eight ferry ports in the Pearl River Delta, experienced year-on-year growth of +7% to about 1.2 million. A new record on single month passenger flow was reached in August when SkyPier received 250,000 – one month after setting the previous single-month record in July 2011.
In addition, 945,000 passengers used the Mainland coach and limousine service at HKIA during the period, up +11% from a year earlier.
As reported, Hong Kong Airport is home to the year’s biggest series of core category retail tenders, which have attracted some powerful bids and some intriguing alliances.
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