Airports of Thailand reports +8.28% growth in concession revenues in Q3 FY2017

THAILAND. Airports of Thailand has reported a +8.28% year-on-year increase in concession revenues to THB3.66 billion (US$110 million) for the third quarter ended 30 June.

For the nine months between October 2016 and June 2017, concession revenues rose +5.80% to THB10.85 billion (US$326 million). The main drivers were increased passengers numbers and a lift in revenue-sharing.

Airports of Thailand said the majority of non-aeronautical income, which rose +9.04% in the first three months, was concession revenues. Non-aeronautical revenues grew +9.32% in the nine months ended 30 June.

Non-aeronautical revenue
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Passenger traffic at the company’s six airports increased +7.52% in the nine-month period, to 96.77 million. There were 53.88 million international passengers while 42.89 million flew domestically.

During the third quarter, the company generated net profit of THB5.4 billion (US$162 million), an increase of +7.86% year-on-year.

Net profit for the nine-months ended 30 June 2017 was THB16.9 billion (US$507.3 million), an increase of +12.13%.

“The overall aviation industry of Thailand between October 2016 and June 2017 has improved compared to the same period last year and is in line with the growth of the aviation industry of the world,” said Airports of Thailand.

“The number of Chinese tourists who are visiting Thailand has recovered after an extreme decline around the end of the year 2016 as a consequence of the government’s campaign against illegal tours. Chinese tourists are the [largest nationality] visiting Thailand.

Operating results for the three-month period ended 30 June 2017
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“The domestic political situation is stable. The government supports tourism at both domestic and international levels. The rapid expansion of low-cost airlines brings price competitive and increases demand for air travel of middle-income travellers. All of these put forward positive results to both the aviation industry and the overall domestic economy.”

The company also assessed factors affecting its future operation. “In this fiscal year, Airports of Thailand will benefit from the opening of Terminal 2 of Don Mueang International Airport on 8 March 2016 and the international terminal of Phuket International Airport on 16 September 2016,” it stated.

“In addition, the old terminal of Phuket International Airport is currently being renovated to become a domestic terminal. This will accommodate an increase in passengers and commercial rental areas at these airports. This corresponds to a plan to increase non-aeronautical revenues and to increase an efficiency of services at the same time.

“The International Air Transport Association also expects that Thailand’s tourism and aviation market will be ranked within [the top ten] in the world [in the] next 20 years. Thailand is currently investing in fundamental infrastructure to support the growth. Airports of Thailand has been continuously improving the six international airports under its responsibility to support a strategy to develop the country’s fundamental transportation infrastructure. This will help the competitiveness of trade, investment and the tourism business.”

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Operating results for the nine-month period ended 30 June 2017
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