Strong Traffic Rebound @ HKIA

Airport Authority Hong Kong (AA) has reported its unaudited interim financial results for the six months ended 30 September 2010. Revenue and profit attributable to equity shareholder increased 19% and 50% respectively over the same period in the previous year, to HK$5,142 million and HK$1,961 million.

All three categories of air traffic showed strong growth as the industry continued to recover from the impact of the global financial crisis.

In the first half of fiscal 2010/2011, Hong Kong International Airport (HKIA) received 26 million passengers, handled 2.1 million tonnes of cargo and processed 154,834 aircraft movements, representing a year-on-year growth of about 13%, 27% and 12%, respectively.

The robust growth in passenger traffic and improving economy also brought about an impressive increase in revenue from retail operations, which made a significant contribution to the AA’s interim profit growth.

Stanley Hui Hon-chung, Chief Executive Officer of the Airport Authority, said, “The pace and force of the recovery in air traffic demand in the first half of this fiscal year was better than expected. Air cargo, which suffered the most during the economic downturn, did particularly well in the period under review, boosted by robust export and transshipment. The outstanding 50% bottom-line increase was mainly the result of strong performance in both air traffic volumes and retail operations, accounting for a revenue growth of 19% and 25% respectively.”

Mr Hui added, “With signs of sustained economic growth, we are on track for new records in passenger and cargo volume as well as aircraft movements, although the rate of growth in the coming months may slow down against a higher base for comparison.”

To cope with robust market demand, airlines are not only reinstating the capacities suspended during the global downturn, but have also been adding new ones. In the six-month period ended 30 September, five airlines joined HKIA or resumed their services, adding about 32 flights per week. A total of 12 destinations were also resumed or launched in the same period.

Cross-boundary traffic at HKIA also recorded substantial increases alongside air traffic growth. Number of cross-boundary sea-to-air-/air- to-sea passengers at SkyPier surged 35.8% from a year ago to 1.2 million between April and September this year. A single-day record of 11,406 passengers at SkyPier was achieved on 1 October National Day.

Passenger numbers for cross-boundary coaches and limousines registered a year-on-year increase of 33% to about 854,000 during the period.

Ten new licensees that provide cross-boundary coach and limousine service have joined the airport since July this year. New services to Huanggang and Shenzhen Bay Port have also been introduced. Operators at HKIA now run about 460 daily scheduled coach trips between HKIA and 115 destinations in Guangdong, Guangxi and Fujian provinces.

Meanwhile, the airport is working on the detailed design of the initial phase of its mid-term capacity enhancement project – the midfield expansion programme – which is important to support the gradual increase in handling capacity of the existing two runways to 68 flights per hour by 2015. The midfield development will ensure that the airport has adequate parking stands and passenger concourse facilities to accommodate the estimated increase in demand to about 70 million passengers and six million tonnes of cargo per annum by 2020.

William Lo, Executive Director, Finance, Airport Authority, said, “While we saw a very robust rebound in air traffic in the first six months, we remain cautious about the stability of the financial markets and the pace of recovery in major economies. The Airport Authority is maintaining very healthy financial strength, largely a result of remarkable business growth and effective management of its financial resources. We will continue to operate HKIA based on prudent commercial principles.”

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