Strong demand for air travel results in MAHB profit jumping 20% in Q1

  • Business
  • Wednesday, 01 Jun 2011

SEPANG: Malaysia Airports Holdings Bhd (MAHB) recorded a 20% jump in net profit to RM88mil for the first quarter ended March 31, led by strong demand for air travel.

This was despite uncertainties in the aviation sector due to political tensions in the Middle East and earthquake and tsunami in Japan.

Revenue rose 22%, or RM118mil, to RM610mil from RM498mil a year ago.

However, the airport operator's earnings before interest, tax, depreciation and amortisation (EBITDA) was marginally lower at RM189mil from RM190mil a year earlier.

Speaking at a briefing on the company's results yesterday, chief financial officer Faizal Mansor said MAHB had adopted the IC12 (IC interpretation 12: service concession agreements) accounting treatment.

This has allowed MAHB to recognise revenues and costs from the construction works of KL International Airport 2 (KLIA2) and Penang International Airport amounting to RM155mil and RM62.2mil respectively, thus lifting its revenue further.

If the effects of the IC12 are stripped out, MAHB's revenues would have been RM455mil.

“MAHB recorded passenger growth of 11.9% in the first quarter, with 15.1 million passengers passing through its 39 airports in the country.

“International passenger movements outpaced growth in domestic passenger movements at 13.6% and 10.2% respectively,” managing director Tan Sri Bashir Ahmad said.

He said despite the natural catastrophes that had affected north-eastern Japan in March and the upheaval in the Middle Eastern and North African countries, total passenger movement in KLIA improved by 12.4%, with the low-cost carrier terminal and KLIA main terminal recording growth of 19.6% and 6.6% respectively.

“All other airports recorded an aggregate growth in total passenger movement of 11.1%,'' said Bashir.

While commercial revenue is on the rise, aeronautical revenue declined by 0.3% due to the accrual of airline incentives made in the quarter amounting to RM30mil versus RM10mil last year.

On the outlook for the second and third quarters of the current financial year, Faizal said it “remains positive,” although high crude oil prices would continue to have an impact on the industry. For the full year, MAHB has forecast a passenger growth of 7% to 8%.

On the status of KLIA2, Faizal said: “It is progressing quite well. We are behind target but it should be completed by October next year. Even if we are behind schedule, we will try to catch up.''

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