Airport Authority sets profit record of HK$5.6 billion for 2012/2013

Airport Authority Hong Kong (AAHK) today announced that Hong Kong International Airport (HKIA) continued to deliver record financial performances during the fiscal year ended 31 March 2013. Profit attributable to the equity shareholder rose 5.4% to HK$5,624 million during the year, while revenue increased 8.1% to HK$13,134 million.

AAHK declared a final dividend of HK$4,400 million to the Hong Kong SAR Government. With the latest dividend, AAHK will have paid the Government a total of HK$30,380 million in terms of dividends and return of capital since fiscal 2003/2004.

Passenger throughput and flight movements set new records, increasing by 4.1% to 57.2 million and 4.7% to 355,000 respectively in fiscal 2012/2013 compared with the same period last year. Both also surpassed 20-year forecasts by some years. Cargo throughput rebounded as total cargo handled rose 2.9% to 4.04 million tonnes. HKIA was ranked the world’s busiest cargo airport for the third consecutive year.

Stanley Hui Hon-chung, Chief Executive Officer of AAHK, said, “The revenue growth was largely driven by strong air traffic and increased passenger spending at retail concessions. Looking ahead, we expect air traffic and passengers spending to continue its growth momentum, resulting in healthy increase in revenue. To cope with the anticipated growth in air traffic in the medium term, 48 new aircraft parking stands in the apron and Midfield area will be commissioned in phases within the next two and a half years.”

In fiscal 2012/2013 AAHK continued to exercise stringent control over operating expenses while expanding operations and maintaining the highest standards possible for safety, security, sustainability and service. It attributed the increase in operating expenses mainly to inflationary pressures, strong traffic growth, and the additional three-runway system consultancy and other related expenses incurred during the year.

William Lo Chi-chung, Executive Director, Finance of AAHK, said, “We are pleased to report another strong financial year in 2012/2013. However, we expect that next year’s performance could be impacted by the stagnant economy in the Eurozone, the fragile global economic recovery and the gradual withdrawal of quantitative easing measures in the US, along with the combination of slower economic growth and liquidity concerns in mainland China’s financial sector. We will continue to exercise prudent financial discipline in view of this challenging environment.”

Mr Hui said, “The faster-than-expected traffic growth underscores the increasingly pressing need to expand HKIA. Apart from building 48 parking stands, the Midfield Concourse and its associated facilities, we are planning to add more stands to meet the airport’s future needs. We will also implement other capacity enhancement initiatives to optimise the use of existing space and facilitate the smooth movement of passengers, cargo and aircraft. We are committed to addressing our long-term challenges in the most prudent and professional manner.”

During the year AAHK commenced the statutory environmental impact assessment (EIA) for the three-runway system. Since conducting the EIA process, AAHK has arranged and attended more than 350 seminars, meetings, briefings and airport visits to engage and inform stakeholders. It has also organised exhibitions at the airport, established a dedicated website for the three-runway system, and produced numerous informational leaflets and newsletters.

Citing its core value of environmental protection, AAHK pledged during the year to make HKIA the world’s greenest airport, updating its three-year environmental plan in the process. HKIA’s carbon emissions management and reduction efforts were subsequently recognised with an “optimisation” certificate under the Airport Carbon Accreditation programme organised by Airports Council International. HKIA is the first and only airport in Asia Pacific to achieve this standard. AAHK also plans to publish its first sustainability report this year.

In 2012/2013, cross-boundary traffic between HKIA and destinations in the Pearl River Delta reached new highs. The number of passengers using SkyPier grew 6.2% to 2.6 million, while passenger trips via limousines and coaches rose 3% to almost 2 million.

Download the Annual Report 2012/13: http://www.hongkongairport.com/eng/media/publication/annual-reports-2012-13.html

Download the Financial Results Highlights