Airports of Thailand profit down 24% in Q3 FY2014

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Airports of Thailand (AOT) has recorded a 24.5% fall in its pretax profit for the fiscal third quarter to Bt3.14 billion ($98 million), down from the Bt4.16 billion in 2013.

Revenue for the three months declined 6.4% to Bt9.1 billion, while expenses rose 7.3% to Bt5.95 billion. Attributable net profit also declined 21.4% to Bt2.48 billion, it revealed in a Stock Exchange of Thailand disclosure.

In the nine months to 30 June, the airport operator’s pretax profit fell 14.6% Bt12.7 billion. Revenues rose 4.8% to Bt28.5 billion, while expenses were up 4.1% to Bt17.3 billion. Attributable net profit fell 10.3% to Bt9.94 billion.

In its outlook, AOT expects the ongoing political situation in Thailand will have an impact on the inflow of foreign tourists, and the number of local passengers travelling. While it believes this would be a significant factor, this will cause the passenger numbers at its airports to grow more slowly. However, it foresees the issue to be a short-term problem.

Moving forward, the state-owned airport operator plans to expand Bangkok’s Don Mueang and Suvarnabhumi, and Phuket International airports to facilitate the increase in the number of airlines and services into the country. AOT also intends to raise the non-aeronautical revenue through the 'Airport City' concept, while aligning its goals to be a regional hub for tourism, it adds.