Abu Dhabi Airports achieves 65% increase in operating profit
Abu Dhabi Airports announced it has achieved 65 per cent increase in earnings before interest, depreciation and amortisation (EBIDA), or operating profit, during the January-August period this year compared to the same period in 2016.
The public entity reached 53.3 per cent Emiratisation in 2017, with 88 per cent of executive management being nationals.
The company grew its operating revenue by 26 per cent, helped by the passenger facilitation charge introduced in July 2016.
Other revenue sources
Abu Dhabi Duty Free and Abu Dhabi Airports Free Zone were other key contributors to the revenue increase through growth in passenger spend, the addition of new retailers and concessionaires, as well as the increase in property and space rentals across Abu Dhabi Airports.
On this achievement, Acting CEO of Abu Dhabi Airports, Abdul Majeed Al Khoori, commented: “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.”
Abu Dhabi airports said 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 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.