News | Airports Company profits drop by 43%

Airports Company profits drop by 43%

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Business News of Friday, 12 October 2018

Source: dailyguideafrica.com

John Attafuah OneManaging Director of the Ghana Airports Company Ltd (GACL), John Attafuah

The Ghana Airports Company Ltd (GACL) recorded a 43% decline in its profit for the year 2017.

Profit after tax of the Ghana Airports Company Limited as of 2017 stood at GH¢87 million compared to GH¢153 million in 2016.

Speaking at the 6th Annual General Meeting (AGM) of the GACL, Managing Director John Attafuah said moving forward the company would take steps to prepare its accounts in dollars.

Mr Attafuah said, “The company continues to operate profitably with a performance of about GH¢87 million profit before tax, which is lower by 43% compared to the previous year. Essentially, operational cost and currency exchange losses contributed to low profit.”

“That is why moving forward we have written to the Ghana Revenue Authority to allow us to prepare our financials in dollars. This will help in reflecting the true value of our activities,” he explained.

Air traffic movement

Overall Air traffic movement for the year 2017 was 39,217, representing a 7.9 per cent increment from 2016 number of 36, 354.

This, according to the Airports Company, was as a result of an increase in international and domestic movement in 2017 following the entrance of Air France and Mid Africa, as well as the extension of routes by domestic carrier Africa World Airlines and increased frequencies by Air France and Tap Portugal.

Passenger

Passenger throughput showed an improvement of 5.3% in 2017 compared to 2016, growing from 2,381,917 in 2016 to 2,509,339.

The increase was as a result of the removal of Value-Added Tax (VAT) component from domestic airfares in the first quarter of 2017.

Promotional fares introduced by some airlines in 2017 further increased the number of passengers.

Freight

The tonnage of goods transported through KIA in 2017 was 50,360 as compared to 47, 677 in 2016.

The growth of 5.6% was on account of increased exports in the reporting year, as demand for non-traditional exports improved.
Successful TSA audit

In line with protocol, the Transportation Security Agency (TSA) of the USA, undertook an extensive security audit in November 2017 at KIA which covered all areas of security operations.

The Department of Transport (DFT), UK, also conducted an extensive security survey of the airport after which the recommendations were successfully implemented.

Milestones chalked in 2017 included the construction of Terminal 3, extension of Terminal 2 Arrival Hall (Phase II), construction of outer perimeter fence wall, extension & refurbishment of Terminal 1 Arrival Hall & associated works, KIA Phase III Expansion Works and the construction of catering facilities for Servair Ghana.

Others are the construction of Central Stores, construction of Ho Airport, rehabilitation of 6-kilometer inner perimeter road at Kumasi Airport and rehabilitation of water storage facilities.

Aviation Minister, who was present at the AGM said, “The ministry will insist on being aware of major procurement audit reviews and reports in all its agencies on a regular basis.”

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By Genny Smith 12/10/2018 08:19:00