Hong Kong airport’s net profit up 13.1% in fiscal H1

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Hong Kong International Airport (HKIA) has posted a 13.1% year-on-year increase in its fiscal first-half net profit on strong growth in passenger traffic and aircraft movements.

The airport earned HK$2.75 billion ($355 million) in the first six months to 30 September, up from HK$2.43 billion a year before, says operator Airport Authority Hong Kong.

Its revenue for the first half grew by 8% to HK$6.4 billion, while operating expenses before depreciation and amortisation increased by 4.6% to HK$1.99 billion.

The airport's operating profit before depreciation and amortisation rose by 9.6% to HK$4.41 billion.

Passenger throughput at HKIA rose by 3.8% to 28.7 million while flight movements were 4.6% higher at 176,000. Cargo throughput increased by 2.1% to 2 million tonnes.

William Lo Chi-chung, executive director of finance, says: "We are pleased with the financial performance for the first six months. However, the 2012/2013 full-year performance might be affected by increases in expenditure to refurbish existing facilities and develop growth plans in order to sustain service levels and increase handling capacity."

"Slower growth in retail revenue, a trend that has started to emerge in recent months, is also likely to have an impact on this year's performance. We will continue to exercise prudent financial discipline during the remainder of the year in view of the challenging operating environment," he adds.