The growth in passenger traffic has pushed the Airport Authority of India (AAI)’s revenues past a record Rs.10,000-crore mark in 2015-16, helping it clock a robust 30 per cent growth in its net profit.
While total revenue stood at Rs.10, 824 crore in 2015-16 compared to Rs.9,285 crore in 2014-15, its net profit rose to Rs. 2,537 crore from Rs.1,959 crore. “For the first time, AAI’s revenue has crossed Rs.10,000-crore mark. This is a huge achievement and we are thriving hard to achieve greater heights,” AAI Member (Finance) S. Suresh told The Hindu. Lower aviation turbine fuel (ATF) helped airlines to charge lower airfares to passengers in 2015-16 leading to robust traffic movement in the country. ATF contributes almost 40 per cent to an airline’s total operational costs. India’s air passenger traffic, both domestic and international, rose 17.6 per cent to 22.36 crore in 2015-16 and there was 12 per cent more aircraft movement across the airports.
Service revenues up
Higher passenger traffic and aircraft movement led to an 18 per cent increase in AAI’s airport service revenues to Rs.2,891 crore. Every year, AAI earns airport service revenue by levying user development fees and passenger service fees on air tickets.
The contribution of revenues from the public-private partnership airports at Mumbai and Delhi stood flat at 31 per cent of total revenue of AAI in 2015-16. Under the agreement, Delhi International Airport Limited (DIAL) shares 45.99 per cent of its revenue with AAI and Mumbai International Airport Limited (MIAL) shares 38.7 per cent every year.
“AAI’s revenue will continue to grow as long as there is a need for air travel and travel is still at affordable levels,” said Mark D Martin, Founder and Chief Executive of Martin Consulting, an aviation consulting firm.
While earnings from route navigation charges grew 9.6 per cent to Rs.2,581 crore, that from non-aeronautical airport services, mainly land rent, rose 22.56 per cent to Rs.1,202 crore. However, cargo revenues grew by just 2.37 per cent to Rs.201 crore in 2015-16.
