AoT is studying a commercial plan to add major retail outlets and a shopping mall under its Airport City business model that should increase non-airline revenue that grew 10.57% during the fiscal year ending last September.
According to AoT’s Annual Report issued this week, the company reported revenue from sales and services reached B 54.9 billion in the fiscal year ending Sept 30, 2017.
Of that total non airline-related revenue accounted for B24.075bn, representing 44% share.
The main revenue sources in the non-airline category were concessional fees and advance passenger checking service fees.
AoT closed its financial year Sept 30 and in its Annual Report noted that its six airports handled 823,574 flights, up 6%, and 129 million passengers, an increase of 7.73%.
The public-listed company reported a net profit B20.68bn for the fiscal year representing a 7.07% increase on fiscal year 2016.
AoT’s earnings are projected to grow further in 2018 as non-airline sales increase under its Airport City business mode.
Financial analysts say they have still to factor in AoT’s possible takeover of 15 additional airports, possibly by 2020. Airport acquisitions in the provinces could impact on profitability forecasts, but in the long run the forecast remains positive.
AoT is negotiating to take over 15 additional airports owned by Department of Airports and develop some of them into major airports.
Analysts understand that the Department of Airports has agreed to offer AoT two airports in Tak and Udon Thani, but AOT is keen to acquire all 15.
If the takeover goes through, the long-term strategy would be to encourage airlines to fly more direct international flights to provincial airports in the hope it would ultimately ease pressure on over-used Suvarnabhumi and Don Mueang airports.
However, as tourists arrivals in 2018 and 2019 are set to increase to around 37mn a year up from an estimated 35.38mn in 2017, congestion at the two Bangkok gateway airports could worsen over the next two years.
AoT’s plans expand capacity all its six airports to reach 184mn passengers per year up from today’s maximum capacity ceiling of 101mn, a benchmark that was surpassed during the fiscal year 2017 (129mn passengers)
Projects are underway at Suvarnabhumi Airport in Bangkok and Phuket, with plans earmarked for the northern Chiang Mai gateway. In the long run AOT’s Chiang Rai airport will undergo expansion.
In 2018, analysts expect AOT to grow profit by 10.7% as passenger volume continue to expand on the back of a buoyant Chinese travel market and a further boost in low-cost airline services from major cities across Asia.
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