In the first of 2014, concession revenues at Beijing Capital International Airport (BCIA) dipped by 2.3% YOY, to RMB991,595,000 (US$161,186,761), however retail revenues increased nearly 4% YOY to RMB433m (US$70.5m).

 

Overall, BCIA’s non-aeronautical revenues reached RMB1,595,244,000 (US$259,319,654) representing a YOY increase of 6%, despite challenges which continue to hamper air traffic growth e.g. recent aviation incidents, anti-terrorist/anti-riot measures.

 

Retail revenues reached RMB433,736,000 (US$70.5m), representing an increase of 3.9% YOY and F&B revenues grew by 3.3% YOY to RMB59,282,000 (US$9.6m) which BCIA attributed to ‘increase in passenger throughput and the improvement of passenger consumption ability’.

 

Concession revenues from Ground Handling (-58.3%) and advertising (-4.1%) had a negative effect on non-aeronautical revenues. VIP services revenue was also down 6.5% to RMB35,653,000. However, the group’s growth in net profit after tax remained flat (0.6%) reaching RMB677m (US$110.2m).

 

Rental revenues reached RMB510,999,000, representing an increase of 25.1% YOY, mainly due to the increase in the rental price of ‘relevant business lease resources in the terminals’ and area lease resources outside the terminals. “The Company reached an agreement with certain customers in respect of the usage fee of some resources for previous years with some customers, and recognised the related revenues in this period,” said BCIA.

 

 

TRAFFIC GROWTH SLOWS

In the first half year of 2014, turbulent geopolitical developments as well as a decrease in the demand of southeast Asia routes [a result of the missing MH370 flight and other factors] meant that total traffic volumes slowed.

 

“In the second half year of 2014, international air traffic volumes are expected to keep a stable and good trend, and will still be superior to the domestic air traffic volumes in respect of growth, which, however, will slow down,” said BCIA in a forward-looking statement.

 

“Meanwhile, due to the impact of special weather, air traffic control and other external environment, etc., there are still certain pressure and uncertainties about the growth of the air traffic volumes at Beijing Capital Airport.”

 

BCIA says that the consequences of major international aviation incidents, anti-terrorist and anti-riot measures will pose challenges for the airport in the coming months. “In the second half of 2014, the aviation security as well as the management and control of public areas of Beijing Capital Airport will be confronted with extreme challenges,” it adds.

 

 

BEIJING NEW AIRPORT PROJECT

The company says it will further strengthen anti-terrorist collaboration, reinforce operation guarantee, promote safety margin, improve the construction of security system and enhance the risk prevention ability, so as to ensure sustained safety and security.

 

The company says it will also continue to optimize the overall business plan, innovate the business model and continuously increase non-aeronautical revenues.

“The approvals in respect of the Beijing New Airport project will enter the final phase in the second half year of 2014,” says BCIA. “The Company will continue to comprehensively track the progress of this project and conduct assessments on relevant impact on the project, in order to make prudent decisions about the desirable tactics to be taken for the Beijing New Airport project.”

 

ABOUT BCIA

Beijing Capital International Airport Company Limited (the “Company”) was incorporated as a joint stock company with limited liability in the People’s Republic of China (the “PRC”) on 15 October 1999 and has been listed on The Stock Exchange of Hong Kong Limited since 1 February 2000. The Company is majority owned by Capital Airports Holding Company (“CAHC” or the “Parent Company”), a state-owned enterprise established in the PRC under the control of the Civil Aviation Administration of China (“CAAC”).