Airport operator reports 65% jump in operating profit in first year of AED35 passenger fee
The introduction of a AED35 fee on passengers using Abu Dhabi airports last year has led to a big jump in operating profit for Abu Dhabi Airports, the company has revealed.
Abu Dhabi Airports announced that it has achieved a 65 percent increase in operating profit during the January-August period this year compared to the same period in 2016.
The company also said it grew its operating revenue by 26 percent in the same period, adding that one of the key reasons behind the rise was the passenger facilitation charge introduced in July 2016.
Previously, UAE airports were some of the few around the world that didn’t implement transfer passenger fees. In response to market change, the government approved the charges and they were implemented across all airports in the second half of 2016.
2017 has also seen an 11 percent increase in the operating expenditure compared to the same period in 2016.
Abdul Majeed Al Khoori, acting CEO of Abu Dhabi Airports, also attributed the increase to the performance of Abu Dhabi Duty Free and Abu Dhabi Airports Free Zone.
He said: “We are very proud of our performance this year. Abu Dhabi Airports’ mission and goals revolve around a highly effective and efficient management of resources and manpower to maintain positive trend in profit growth. Supported by planning a smart and versatile strategy, we were able to turn challenges into opportunities and register record achievements in all aspects of our business.”
He said 2017 has proven to be a challenging year for the Middle East aviation industry, with the ripple effect of the Chinese austerity drive, the global political climate, and their influence on commodity and foreign exchange markets, adding that Abu Dhabi International Airport has been affected by these external factors, which have impacted passenger traffic and aircraft movements.