Source: China Daily HK Edition Author: Hui Ching-hoo 06/26/2008
Subject Concerned: Government Opinion Airport
The Airport Authority Hong Kong (AAHK) saw an 18 percent rise in its net profits during the last fiscal year.
Higher retail sales and more flights helped bring in HK$2.27 billion in the 12-month period ending March 31, 2008.
Overall, the company's gross revenue hit HK$8.57, up 11 percent year-on-year. And its operating margin grew from 60 to 62 percent.
The number of flights went up 6 percent, to about 300,000. And the authority recorded about 48.9 million passengers for an 8 percent gain.
The group paid the Hong Kong SAR Government a final dividend of HK$2 billion, up 25 percent year-on-year.
Despite the authority's strong gains, Chief Executive Officer Stanley Hui said that the short-term outlook is blurry because of high oil prices and rising inflationary pressure.
Starting in early July, weekend flights across the Taiwan Strait will be available, and Hui said it will present new challenges to Hong Kong International Airport (HKIA).
But the mid- to long-term economic outlook remains strong, as growth is expected in Hong Kong and on the mainland. The government also intends to boost the number of flights in Hong Kong to 68 per hour by 2015.
On the mainland, the company's 35 percent-owned Hangzhou Xiaoshan International Airport (HXIA) saw an 18 percent rise in the number of passengers to 11.7 million.
Additionally, HXIA is expected to select banks next month for a public offering in Hong Kong or Shanghai next year.
Patrick Shum, chief portfolio strategist for Karl Thomson Securities, said the slowdown in the global economy and the oil hikes will cast a shadow on the Airport Authority Hong Kong's outlook.
"Tourist flow and cargo throughput of the airport will be dragged down by the imminent economic recession," Shum said. "The distress will likely be reflected in the books in the coming financial year."