Special Announcement

Strong Traffic Rebound Underpins Airport Authority’s
Robust Interim Results

(HONG KONG, 29 November 2010) – Airport Authority Hong Kong (AA) today announced the 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, is delighted to see that business has bounced back and air traffic has returned to pre-crisis levels. He 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 number 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.

As an international and regional aviation centre and the preferred gateway to the Mainland, HKIA is renowned for its operational efficiency, service excellence and extensive international air services network in both passenger and cargo services.  The relentless efforts of HKIA in providing  passengers and other airport users alike with a delightful airport experience was recognised by several organisations in the past few months.  These include the award by Airports Council International of the world's best airport among facilities serving over 40 million passengers annually, and the most efficient Asia-Pacific airport award by Air Transport Research Society for the fourth consecutive year.

Last month, the airport won the Best Airport title for the eighth year at the TTG Travel Awards 2010. It was also voted as the Best Airport in China by leading travel publication Business Traveller China earlier this month.

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."

The 2010/2011 interim financial results were reviewed by an independent auditor and approved by the Board of the Airport Authority.

Six months ended 30 September FY2010/11 FY2009/10 ± %*
Financial Highlights (HK$ million)
Revenue 5,142 4,316 +19%
Operating expenses before depreciation and amortisation 1,675 1,641 +2%
Operating profit before depreciation and amortisation 3,467 2,675 +30%
Profit before taxation 2,354 1,572 +50%
Profit attributable to equity shareholder 1,961 1,307 +50%
Operational Highlights
Passenger volume (million) * 26.0** 23.0 +13%
Cargo volume (million tonnes) * 2.1** 1.7 +27%
Air traffic movements 154,834** 138,541 +12%

* Subject to rounding differences
** Provisional figures

To view the AA's Interim Report, please go to:
http://www.hongkongairport.com/eng/pdf/media/publication/report/interim/2010.pdf



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