Airports of Thailand (AOT), which runs the six key international airports in Thailand, has seen growth in concession revenue decline in the quarter to June compared to the previous quarter to March, from +9.7% to +5.6%.

 

The slide meant that in the quarter to March, concession revenue was THB 2,709.16 ($84.4m) and in the quarter to June it was THB 2,246.02 ($70m) – see charts below and click to enlarge.

 

By comparison, passenger traffic also deteriorated over the two periods: it grew marginally by +0.32% to 23.1m in the fiscal second quarter and fell by -2.55% to 20.1m in the third.

 

Traffic falls at Bangkok’s Suvarnabhumi International Airport (BKK) – the main location for duty free and travel retail sales – were much worse at -8.9% and -15.6% respectively, reflecting Thailand’s continuing unstable domestic political situation.

 

Total non-aeronautical revenue for the two periods rose by +9.4% and +6.7% respectively. For the three months ended 30 June total non-aeronautical revenue reached THB 3,698.4 ($115.2m) of which concessions have a share of 61%.

 

AOT says the concession revenues rise was “because revenue sharing from sales and services increased as a result of a growth in number of passengers and a slight increase in the revenue sharing rate of duty free shops by THB 30.72m ($957,200)”.