Air Transport

The Airport Authority of Hong Kong saw both profit and turnover rise in the 12 months to 31 March 2009.

In a statement the Airport Authority says the profit "attributable to the equity shareholder" (the Government of Hong Kong) rose 13.9% to HK$2.6 billion ($335 million) and turnover rose 3.6% to HK$8.9 billion.

This despite passenger numbers at Hong Kong International Airport falling 2.5% to 47.7 million and air traffic movements falling 1.1% to 296,000. Cargo volumes were also weaker, dropping 10% to 3.4 million tonnes.

The Airport Authority says a combination of factors accounted for improved profits and turnover. In addition to 19.5% profit growth in the first half of the financial year, retail revenue grew 8.3% owing to higher spending per passenger and the availability of additional retail space in HKIA's Terminal 1.

The Hangzhou Xiaoshan International Airport joint venture also helped. During the year, the Airport Authority booked a profit of HK$193 million from the JV, up 117% from the previous year.

The Airport Authority also recorded a 3.2% reduction in depreciation and amortisation and a 45.2% drop in interest and finance charges, realising savings of HK$265 million. Increased revenue, high profits, and better cost controls helped return on equity improve to 7.2% from 6.5%.

"Although the financial tsunami dealt a heavy blow to the global economy and the aviation industry, the Airport Authority managed to achieve a reasonably healthy financial performance for 2008/09 by implementing tight cost controls, enhancing productivity and revising the schedule of our short-term expansion plans," says Airport Authority Chief Executive Officer Stanley Hui Hon-chung. "These measures, together with the relatively stronger traffic and earnings performance in the first half of the financial year, have helped to mitigate the negative impact of the economic downturn."