AA reports profit for the first time

(HONG KONG, 11 July 2001) - The Airport Authority (AA) has reported a consolidated net profit of HK$71 million in its 2000/01 Annual Report tabled in the Legislative Council today. This is the first year since airport opening that the AA has reported a net profit, setting the stage for future growth in both revenue and profitability.

The latest Annual Report covers the AA's second full financial year of operations at Hong Kong International Airport. Operating results for the year ended 31 March 2001 and comparisons were:

Operating Results (in HK$ million)

Turnover

2000/01 --- 5,159

1999/00 --- 5,055

6 July 98 to 31 March 99 --- 3,773

Operating Profit before Depreciation

2000/01 --- 2,392

1999/00 ---2,031

6 July 98 to 31 March 99 --- 1,603

Depreciation

2000/01 --- 1,781

1999/00 ---1,740

6 July 98 to 31 March 99 --- 1,639

Profit (Loss) from Operations

2000/01 --- 611

1999/00 --- 291

6 July 98 to 31 March 99 --- (36)

Finance Costs

2000/01 --- 533

1999/00 -- 454

6 July 98 to 31 March 99 --- 348

Net Profit (Loss) after Tax

2000/01 --- 71

1999/00 --- (168)

6 July 98 to 31 March 99 --- (388)

Notwithstanding a full year impact of the 15 per cent reduction in Landing and Parking Charges introduced on 1 January 2000, consolidated turnover increased by $104 million to $5,159 million. The increase in revenue and continued control over operating costs resulted in profit from operations of $611 million, more than double the amount of $291 million reported in 1999/00.

"The last financial year has been a good year for the Authority and HKIA as a whole," AA Chief Executive Officer Dr David Pang said. "We have performed satisfactorily across the spectrum of our business and established high levels of safety, security, quality services and operational efficiency."

Ref. PR-577