Airports of Thailand posts 42% fall in concession income in 9m to 30 June

By Luke Barras-hill |

Concession income, which includes contributions from King Power International Group, suffered a Bht5,575.53m loss over nine months.

Concession revenue across the six airports operated by Airports of Thailand fell by 41.93% to Bht7,722.08 million/US$240.4 million in the nine-month period covering October 2019 to June 2020.

Suvarnabhumi, Don Mueang, Chiang Mai, Hat Yai, Phuket and Chiang Rai have suffered commercially due to the coronavirus (Covid-19) pandemic.

Non-aeronautical revenue dropped by 36.53% to Bht13,366.32 million as passenger volumes and air traffic declined by 35.17% (438,840) and 39.58% (65.15 million), respectively.

Aeronautical revenue declined by 39.94% to Bht15,959.92 million for the period in question.

COUNTRY SITUATION ‘IMPROVING’

Concession income in the latest quarter (April-June) fell by 92% year-on-year to Bht341.65 million, as non-aeronautical revenue declined by 83.69% to Bht1,107.76m as a result of a decrease in concession revenues.

A fall in flights and passenger volumes of -88.7% and 95.7%, respectively, also hit aeronautical revenues, which in turn dropped by 97.5% to Bht211.70 million.

As reported, AoT is providing assistance measures to partners at the six airports under its control. This followed meetings of the Board of Directors on 19 February and 22 April.

Last month, AoT extended payment terms for its concessionaires from six months to 12 months.

Source: Airports of Thailand. Click to enlarge.

In a note, AoT said: “The outbreak of coronavirus pandemic in early 2020 has intensified and expanded globally. This severely affected both aviation and tourism industries due to a temporary ban placed on international flights in order to prevent and control the pandemic. These restrictions caused airlines around the world to become inoperative and were forced to cancel all their domestic and international services.

“The situation affected both concessionaires and airlines. The Group has therefore implemented measures to assist those who are affected by the outbreak of Covid-19 to relieve the impact during the crisis, which also affected non-aeronautical revenue.”

Thailand’s Civil Aviation Authority temporarily banned international flights to the country in April. Since the end of the quarter (April-June), AoT says the situation in the country has improved, allowing the government to ease cross-province travel restriction.

The country’s transport services and tourist attractions have also resumed business under new operating conditions.

International

Harding+ announces departure of Chief Brand and Culture Officer Sue Gosling

Harding+ Chief Brand and Culture Officer Sue Gosling has stood down from her...

International

Global Travel Retail Awards 2024: Entries now open!

TRBusiness is delighted to announce that entries to the consumer-voted Global Travel Retail...

International

"Growing appetite for sustainable & local products"

With international passenger traffic rebounding, consumers are demonstrating a craving for...

image description

In the Magazine

TRBusiness Magazine is free to access. Read the latest issue now.

E-mail this link to a friend