HONG KONG. Retail revenues, up by +25% year-on-year, were to the fore as Airport Authority Hong Kong this week posted a robust set of interim financial results for the six months ended 30 September.
Revenue and profit attributable to equity shareholder increased by +19% and +50% respectively over the same period in the previous year, to HK$5,142 million (US$662 million) and HK$1,961 million (US$252 million).
All three categories of air traffic showed strong growth as the industry continued to recover from the impact of the global financial crisis, the Authority said.
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In the first half of fiscal 2010/2011, Hong Kong International Airport (HKIA) received 26 million passengers, handled 2.1 million tonnes of cargo and processed 154,834 aircraft movements, representing year-on-year growth of about +13%, +27% and +12% respectively.
The robust growth in passenger traffic and an improving economy also brought about an “impressive” increase in revenue from retail operations, which made a significant contribution to interim profit growth, said Airport Authority Hong Kong.
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“The outstanding +50% bottom-line increase was mainly the result of strong performance in both air traffic volumes and retail operations, accounting for a revenue growth of +19% and +25% respectively“ |
Stanley Hui Hon-chung Chief Executive Officer Airport Authority Hong Kong |
CEO Stanley Hui Hon-chung said he was delighted to see that business has bounced back and air traffic has returned to “pre-crisis” levels.
He commented: “The pace and force of the recovery in air traffic demand in the first half of this fiscal year was better than expected. Air cargo, which suffered the most during the economic downturn, did particularly well in the period under review, boosted by robust export and transshipment. The outstanding +50% bottom-line increase was mainly the result of strong performance in both air traffic volumes and retail operations, accounting for a revenue growth of +19% and +25% respectively.”
He added: “With signs of sustained economic growth, we are on track for new records in passenger and cargo volume as well as aircraft movements, although the rate of growth in the coming months may slow down against a higher base for comparison.”
To cope with robust market demand, airlines are not only reinstating the capacities suspended during the global downturn, but have also been adding new ones, said the Authority.
In the six-month period ended 30 September, five airlines joined HKIA or resumed their services, adding about 32 flights per week. A total of 12 destinations were also resumed or launched in the same period.
MAKING THE MAINLAND CONNECTION
Cross-boundary traffic at HKIA also recorded substantial increases alongside air traffic growth. The number of cross-boundary sea-to-air-/air-to-sea passengers at SkyPier surged by +35.8% from a year ago to 1.2 million between April and September. A single-day record of 11,406 passengers at SkyPier was achieved on 1 October (National Day).
Passenger numbers for cross-boundary coaches and limousines posted a year-on-year increase of +33% to about 854,000 during the period.
Ten new licensees providing cross-boundary coach and limousine services have joined the airport since July this year. New services to Huanggang and Shenzhen Bay Port have also been introduced. Operators at HKIA now run about 460 daily scheduled coach trips between the airport and 115 destinations in Guangdong, Guangxi and Fujian provinces.
Meanwhile Airport Authority is working on the detailed design of the initial phase of its mid-term capacity enhancement project – the midfield expansion programme. This is designed to support the gradual increase in handling capacity of the existing two runways to 68 flights per hour by 2015.
The midfield development will ensure that the airport has adequate parking stands and passenger concourse facilities to accommodate the estimated increase in demand to about 70 million passengers and six million tonnes of cargo per annum by 2020.
Airport Authority Executive Director, Finance William Lo said: “While we saw a very robust rebound in air traffic in the first six months, we remain cautious about the stability of the financial markets and the pace of recovery in major economies. The Airport Authority is maintaining very healthy financial strength, largely a result of remarkable business growth and effective management of its financial resources.
“We will continue to operate HKIA based on prudent commercial principles.”
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