Hong Kong Airport full-year profits up 9%

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The Airport Authority of Hong Kong has posted a 9% increase in profits for the year to 31 March despite a tough operating environment.

The operator of Hong Kong International Airport recorded a profit attributable to its shareholder of HK$2.844 billion during the year, while its revenues grew by 1.5% to HK$9.015 billion from a year before.

That allowed it to pay an ordinary dividend of HK$2.3 billion and special dividend of HK$2.2 billion to its owner, the Hong Kong government, says the authority. The results were "despite the volatile operating environment" that came from the global economic downturn, it adds.

Passenger traffic at HKIA fell by 1.7% to 46.9 million while air traffic movements were 5.4% lower at 280,000 respectively during the financial year. Cargo throughput, however, grew by 4.4% to 3.6 million tonnes.

"We were able to achieve sound and satisfactory results despite the challenging market due to strict cost controls, productivity gains, increased revenue from retail operations as well as an improving economic climate starting from the fourth quarter of 2009," says Stanley Hui, CEO of the Airport Authority of Hong Kong.

"Meanwhile, growing non-aeronautical revenue not only provided the AA with a strong income stream, but also offset the revenue reduction of HK$242 million resulting from a relief package comprising landing and parking charge reductions and deferred rental payments between April 2009 and March 2010. The relief package was introduced to help airlines and other operators at HKIA weather the impact of the financial crisis."