Hong Kong airport bounces back to HK$1.61 billion net profit after 3 years of losses during pandemic

Airport gets boost from gradual resumption of passenger traffic, cargo and airmail throughput and retailing operations

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Passenger traffic has gradually increased at Hong Kong International Airport. Photo: Dickson Lee

Published: 10:06pm, 3 Jul 2024Updated: 11:52pm, 3 Jul 2024

Hong Kong airport has staged a strong post-pandemic recovery, bouncing back to a net profit of HK$1.61 billion in 2023-24 after three straight years of losses, with its management reviewing its debt repayments amid a high-interest-rate regime.

Operator the Airport Authority of Hong Kong, which released its annual results on Wednesday, attributed the stellar performance for the financial year ending March 31 to the gradual resumption of passenger traffic, cargo and airmail throughput and retailing operations.

Still, net profit was well below pre-pandemic levels, at about 27.5 per cent of the HK$5.86 billion reported in 2019-20. Revenue jumped 66.5 per cent year on year to HK$13.68 billion, or 80 per cent of the pre-pandemic level.

Hong Kong International Airport handled 45.2 million passengers and 309,650 flight movements in 2023-24, year-on-year increases of 264.5 per cent and 92.1 per cent increase respectively. But passenger numbers were only 74.2 per cent of the 2019-20 level while aircraft movements were at 82.2 per cent.

Most of the airport’s revenue – 59 per cent or HK$8.06 billion – came from non-aeronautical income.

Revenue from duty-free licensees, retailers, food and beverage outlets and advertising, jumped 423.5 per cent to HK$3.93 billion in 2023-24 or 28.8 per cent of the total.

The airport’s management attributed the increase to shops and restaurants reopening in Terminal 1 following a gradual increase in passenger traffic, a revamped and upgraded luxury shopping zone and a new food court.