AOT’s 9M Profit Stables at ฿19.9bn, Asserting Improvement of Overall Aviation Industry

Airports of Thailand Public Company Limited (AOT) has reported its FY3Q19 consolidated financial statement through the Stock Exchange of Thailand as follows:

During the third quarter of FY 2019, AOT generated net profit of THB 5,883.06 million. It decreased by THB 551.10 million or 8.57%, compared to the same period last year. Total revenues increased by THB 419.64 million, total expenses increased by THB 745.14 million and income tax expense increased by THB 219.50 million.

Revenue from sales or services increased by THB 253.96 million or 1.71% as a result of an increase in non-aeronautical revenue of THB 272.07 million or 4.17%. The main reason was from concession revenues while the aeronautical revenue decreased by THB 18.11 million or 0.22%.

Other income increased by THB 165.68 million or 55.79%. Total expenses increased by THB 745.14 million or 9.96%. The main reason was from the increase in state property rental. Income tax expense increased by THB 219.50 million or 17.80%. The part was from the impairment of assets that is not a deductible expense for tax purposes.

 

However, the net profit for the nine-month period ended June 30, 2019 was THB 19,905.19 million, declined by only THB 18.25 million or 0.09%, compared to the same period last year. Revenues from sales or services increased by THB 1,842.61 million or 4.02% as a result of an increase in aeronautical revenue of THB 686.78 million or 2.65% and non-aeronautical revenue of THB 1,155.83 million or 5.81% because of increasing in a number of flights and passengers.

Other income increased by THB 142.44 million or 12.44%. Total expenses increased by THB 1,549.43 million or 6.92%. The main reason was an increase in employee benefit expenses, state property rental, and depreciation and amortization expenses. Income tax expense increased by THB 453.69 million or 9.90%.

 

AOT has stated that the overall aviation industry of Thailand during October 2018 – June 2019 slightly improved compared to the same period last year. Even though the global economy and the tourism sector has slowed down due to the trade war between the US and China, the Thai government has still continued to stimulate tourism. This involves extending the exemption period of the visa-on-arrival fee for tourists from April 30, 2019 to October 31, 2019, in order to encourage Thai tourism during the low season.

Chinese tourists still are the main visitors travelling to Thailand. Furthermore, the ongoing expansion of low-cost airlines leads to price competition, and benefits to air travellers due to cheaper airfares.

The International Civil Aviation Organization (ICAO) inspected Thailand’s aviation standards and concluded that Thailand’s aviation status has continuously improved and higher than the standards required by ICAO. The upgraded standard of Thailand’s aviation safety management has continued after the red flag lifting in 2017. This resulted in diverse routes, which benefits the aviation industry and the overall economy.

In the nine-month period ended June 30, 2019, the air traffic volume from six airports under management of the AOT reported 676,925 flights, a 3.12% increase compared to the same period last year. These comprised 367,673 international flights and 309,252 domestic flights. The total number of passengers was 107.82 million, a 1.52% increase compared to the same period last year. It comprised 63.37 million international passengers and 44.45 million domestic passengers which mainly from the increase of international flights and passengers.