State-owned Airports of Thailand (AoT) has reported a 53.3% drop in concession revenue to Bht 8,164.77 million/$260,457,337.7 million in the 12 months ending September 30 year-on-year, financial statements show.

The result yielded a direct impact on total non-aeronautical revenue, which fell by 47.6% year-on-year to Bht 14,553.41 million/$464,255,872.8m – a loss of Bht 13,219.9 million.

The majority of non-aeronautical income was accounted for by concession revenue (56%), which includes contributions from King Power International Group.

Total passenger volumes for the period in question dropped by 48.8% year-on-year to 72.64 million, comprising 37.49m international travellers and 35.15m domestic passengers.

INVESTING IN THE RECOVERY

Total revenue fell by 48.5% to Bht 33,275.5m while net profit plunged by 82.9% to Bht 4,298.5m.

AoT manages and operates six airports across Thailand: Suvarnabhumi, Don Mueang, Phuket, Chiang Mai, Mae Fah Luang – Chiang Rai and Hat Yai, all of which have suffered from the punishing effects of Covid-19 on passenger volumes and revenues..

On 23 September, the Board approved an extension to measures designed to assist concessionaires and airlines handle rental fees, building service charges and fixed monthly compensation payments.

This followed previous meetings of the Board in February, April and July to prepare contingencies in view of Covid-19.

In July, the Board extended payment terms for concessionaires from six months to 12 months and in September they received an extension of the 50% discount on state property rents until 31 March 2022.

In a statement, AoT said: “Although the Covid-19 pandemic has not been resolved globally, AoT has continued its investment plan to develop the airports.

“After the Covid-19 pandemic ends, the number of passengers are expected to rapidly increase. AoT, therefore, will be ready to provide its services when the flights and passengers return in the future.”

AoT adds that it intends to increase revenue next year by raising income from non-aeronautical revenue sources, Suvarnabhumi Airport City, subsidiaries and its airports.

“This will allow AOT to provide a complete range of airport services,” the operator added.  “It will make Thailand a centre for trade and investment and enhance competitiveness and tourism growth.

“It also will enable the country’s economy to recover once the spread of Covid-19 is under control and make Thailand become the region’s leading aviation and air cargo hub.”