Home » Aviation, Breaking News » HKIA posted record HK$6.5-B profit in fiscal 2013/2014

AA CEO Stanley Hui Hon-chung (left) and Executive Director, Finance, William Lo Chi-chung (right), announce the results of fiscal 2013/2014.

Airport Authority Hong Kong (AA), the HK SAR Government-run developer and operator of Hong Kong International Airport (HKIA), reported a double-digit growth in its revenue and profit performance for the fiscal year 2013/2014 ended March 31, 2014.

For the fiscal year, revenue rose to HK$14.81 billion (US$1.9 billion) for a 12.8 percent hike year-over year, while profit set a new growth record of 14.9 percent to reach HK$6.45 billion.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) also increased 12.3 percent year-on-year to HK$9.9 billion.

“The AA declared a final dividend of HK$5,300 million to the Hong Kong SAR Government. Including this, the AA will have returned the Government a total of HK$35,680 million in dividends and repaid capital since fiscal 2003/2004,” AA said in a media release.

The top- and bottom-line increases were attributed mainly to growing traffic, higher retail concessions revenue, and effective cost controls, it added.

During the year, passenger volume and aircraft movements set new records of 60.7 million and 377,476 movements, respectively, representing year-on-year growth of 6.1 percent and 6.3 percent.

Cargo throughput rose 3.4 percent to 4.2 million tonnes, sustaining the airport’s status as the world’s busiest cargo airport for the fourth consecutive year, the AA said.

Stanley Hui Hon-chung, chief executive officer of AA, said, “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.”

Although “very happy with our record-breaking performance for fiscal 2013/2014,” William Lo Chi-chung, executive director for finance, said this year is throwing up a number of challenges, such as slower retail sales due to the high revenue base that AA has set, the sluggish local retail market, increased operating expenses, and ongoing investments in capacity enhancements.

“However, we will employ prudent financial management as always to ensure that HKIA has a successful 2014/2015, and continues to generate business and opportunities for Hong Kong,” Lo said.

Meanwhile, the AA is continuing its planning work to expand HKIA into a three-runway system (3RS), including the Environmental Impact Assessment (EIA), scheme design, cost updates, and funding options.

Hui said, “Developing the 3RS as soon as practicable is essential not only for the sustainable development of HKIA, but also the continuous growth, prosperity and long-term competitiveness of Hong Kong.”

He said the company hopes that the EIA process can be completed in 2014, so that it can move on to seeking the other required government, statutory, and legislative Council approvals. “Our aim is to start construction in 2016 and for the 3RS to become operational in 2023.”

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