Profits soar for Abu Dhabi Airports
Abu Dhabi Airports Company (ADAC) has posted a whopping 65 per cent increase in operating profit from January to August.
This announcement comes after the company’s executive team weekly meeting that took place at Al Ain International Airport last week, led by Abdul Majeed Al Khoori, acting CEO of Abu Dhabi Airports.The company grew its operating revenue by 26 per cent, which impacted the 65 per cent operating profit increase for 2017. One of the key contributors to this increase is 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 hence these were implemented across all airports in the second half of 2016.
Abu Dhabi Duty Free and Abu Dhabi Airports Free Zone were other key contributors to the revenue increase through the growth trend registered in passenger spend, and the addition of new retailers and concessionaires, as well as the increase in property and space rentals across Abu Dhabi Airports.
The year 2017 has proven to be yet another 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. Abu Dhabi International Airport has been affected by these external factors, which have impacted passenger traffic and aircraft movements.This year has also seen an 11 per cent increase in the operating expenditure compared to the same period in 2016. These increases are a result of both planned operational requirements as well as a rise in the cost of third party services. Such requirements included the expansion of air navigation outsourcing to ensure the airport has adequate resources to handle the dynamic change in traffic movement. Facility management and utility costs have also increased due to service provider fees.