Hong Kong authority profit up 14%

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Airport Authority Hong Kong (AA) has reported double-digit growth in revenue and profits for its financial year ending 31 March with income reaching 14.8 billion Hong Kong dollars ($1.9 billion). 

While revenue and profit jumped 12.8 per cent and 14.9 per cent, respectively, cargo throughput only rose by 3.4 per cent to 4.2 million tonnes. Passenger traffic growth was almost double that. For the 12 months ending 31 March, revenue was the aforementioned 14.8 billion with profits of 6.4 billion Hong Kong dollars. The AA’s earnings before interest, taxes, depreciation and amortisation almost equalled the revenue rise, increasing 12.3 per cent year-on-year to 9.9 billion Hong Kong dollars.

Commenting on the AA’s financial position, the authority’s finance executive director, William Lo Chi-chung, says: “This year we will face a number of challenges, like slower retail sales due to the high revenue base we set, the sluggish local retail market, increased operating expenses to maintain our excellent service levels, and ongoing investments in much-needed capacity enhancements. However, we will employ prudent financial management as always to ensure that [Hong Kong International Airport] HKIA has a successful 2014/2015, and continues to generate business and opportunities for Hong Kong.”

Stanley Hui Hon-chung is the AA’s outgoing chief executive officer. Hui is stepping down on 1 October, to be replaced by Fred Lam Tin-fuk. Hui says: “Air traffic at HKIA is growing much faster than the projections made in HKIA Master Plan 2030. We expect that the global economic recovery and robust regional growth will continue to drive traffic demand at a moderate rate. As a result, the two-runway system at HKIA will likely reach its capacity in a few years’ time.”

 

Under HKIA’s apron expansion, 20 parking stands have entered service and eight will become operational by 2015. The additional five-level Midfield Concourse with 20 parking stands will be commissioned a year later. These investments contribute to more than 12 billion Hong Kong dollars being invested.

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