Subscribe Free
in Airports

Abu Dhabi Airports achieves 65% increase in operating profit this year

Posted 22 September 2017 · Add Comment

Abu Dhabi Airports has announced that it has achieved 65% increase in earnings before interest, depreciation and amortization (EBIDA)/ operating profit during the January-August period this year compared to the same period in 2016.

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%, which impacted the 65% EBIDA 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.

Abdul Majeed Al Khoori 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.”

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.

2017 has also seen an 11% 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.

“Abu Dhabi Airports is committed to utilizing all resources and manpower available to increase its efficiency and profitability. I would like to take this opportunity and extend the team’s gratitude to our wise leadership, whose continuous support have played an instrumental role in the success that Abu Dhabi Airports is delivering”, Al Khoori added. 

Abu Dhabi Airports achieved this year %53.3 in Emiratisation within its entire workforce, with %88 of executive management nationalised.

* required field

Post a comment

Other Stories
Advertisement
Latest News

Qatar trains focus on huge upgrade

A major new training establishment is to be built in Qatar, as part of the support structure for the Gulf nation’s forthcoming massive build-up in military aviation assets. Alan Dron reports.

Etihad Cargo introduces new freighter network

Etihad Cargo has announced a refresh of its global freighter network that will be implemented commencing 1 October, 2018, marking a key milestone in its strategy to simplify its route network and maximise freighter-to-bellyhold

XO Jet becomes part of Vista group

The third largest US business jet charter operator by flight hours, XO Jet, which is part-owned by Abu Dhabi’s Mubadala, has been bought by Vista Global.

Inmarsat and Panasonic Avionics in strategic collaboration for Commercial Aviation

Inmarsat and Panasonic Avionics Corporation (Panasonic) have agreed a strategic collaboration, for an initial ten-year period, that enables them to combine their highly complementary market leading services to offer broadband

Fourth Middle East Safety Summit to go ahead in October in Riyadh

The General Authority of Civil Aviation (GACA), in collaboration with the International Civil Aviation Organization (ICAO), will organise the Fourth Middle East Safety Summit from 2-3 of October 2018 in the capital city of Riyadh.

Predicting what's next in the tailor-made revolution

The fusion of big data, artificial intelligence (AI) and in-flight connectivity is changing the way airlines do business. Steve Nichols looks at how cutting-edge technology is changing what you eat, read, and watch on flights, without

MNGJetSK2908121018
See us at
GATM BT1004061118BIAS BT271017161118MAPS18_BT1207131118MarrakechAirshow BT2507241018MEBAA BT1004121218Cargo BT1004091018Aviation Africa BT0607280219Istanbul Airshow BT22018AIME19BTA3005120219ASDubai BT1004091018