Airport Authority Hong Kong announces its unaudited interim financial results for the six months ended 30 September 2014

HONG KONG, 2014-11-24 — /Travel PR News/ — Airport Authority Hong Kong (AAHK) today announced its unaudited interim financial results for the six months ended 30 September 2014. Revenue increased 9.3% over the same period last year to HK$8,018 million.

In the first half of fiscal 2014/ 2015, Hong Kong International Airport (HKIA) handled a total of 32.1 million passengers, 2.19 million tonnes of cargo and 196,000 flight movements, representing year-on-year increases of 5.5%, 7.4% and 4.8% respectively.

Fred Lam, Chief Executive Officer of AAHK, said, “The satisfactory first-half results were due to steady growth in air traffic, prudent financial control over expenses and increasing passenger spending. Because air traffic volume at HKIA is growing at a faster-than-expected rate, we have been working on a number of projects, including the West Apron and the Midfield, to ensure that the airport is well equipped to meet its anticipated medium-term demand.”

Announced in 2012, the HK$2.2 billion West Apron development is designed to meet rising demand for aircraft parking spaces due to growing air traffic, continuous fleet expansions by airlines and the introduction of new types of aircraft. It is expected to be completed at the end of 2014, on schedule and within budget. It will offer 28 new parking stands, four of them serving new aircraft types with longer fuselages such as the A380 and B747-8.

The five-level Midfield Concourse, located west of Terminal 1, is a core part of HKIA’s Midfield Development. The concourse will be equipped with 20 new aircraft parking stands. Begun in 2011, the construction is expected to be completed by the end of 2015.

William Lo Chi-chung, Executive Director, Finance of AAHK, said, “We are pleased with our satisfactory financial performance for the first six months.  The financial position of AAHK is very robust and we are set to take on further major infrastructure investment to meet the growth in demand in the years to come. We are mindful of the slowing down of retail sales in Hong Kong and the potential increase in interest rate which might bring adverse impact to the financial performance for the next six months and beyond.  The management shall continue to exercise financial discipline in managing the business. ”

Currently, HKIA handles around 1,100 daily aircraft movements, which is close to the two-runway system’s maximum capacity of 1,200 movements per day. “We expect that the airport could reach saturation as early as 2016 or 2017,” Mr Lam said. “To maintain HKIA’s leading status as a international and regional aviation centre, as well as the city’s competitiveness, it is crucial that we expand the airport into a three-runway system in order to meet its increasing air traffic demand in the long term.”

During the period under review, 1.43 million passengers using SkyPier, while close to 1 million passengers travelled between HKIA and the Pearl River Delta region by coach and limousine. Also, a new daily record for cross-boundary traffic was set during the National Day Golden Week in early October.

The 2014/ 2015 interim financial results were reviewed by an independent auditor and approved by the Board of the Airport Authority.

Six months ended 30 September	FY2014/ 2015	FY2013/ 2014	± %*
Financial Highlights (HK$ million)
Revenue	8,018	7,337	9.3
Operating expenses before depreciation and amortisation	2,434	2,365	2.9
Operating profit before depreciation and amortisation	5,584	4,972	12.3
Profit before taxation	4,603	3,833	20.1
Profit attributable to equity shareholder	3,834	3,215	19.3
Operational Highlights
Passenger volume (million)*	32.1**	30.5	5.5
Cargo volume (million tonnes)*	2.19**	2.04	7.4
Aircraft movements*	196,000**	187,000	4.8

* Subject to rounding differences
** Provisional figures

To view the AAHK’s Interim Report, please go to:
http://www.hongkongairport.com/eng/pdf/media/publication/report/interim/2014.pdf