Airports of Thailand Plc (AoT) sees a strong rebound in passenger traffic through its airports in the year to September 2015, due mainly to the improved tourism outlook.
The state-controlled company, which operates six airports including Bangkok's Suvarnabhumi, projects a 12% jump in combined passenger throughput during October 2014 to September 2015 to reach 98.1 million, up from 87.6 million.
Poolsiri: AoT poised for earnings growth
That will be a sharp rise from the marginal 1.67% growth seen in the last fiscal year, caused by the country's political turmoil in the first half of 2014.
Poolsiri Virojanapa, senior executive vice-president for accounting and finance at AoT, singled out post-coup political stability for restoring passenger traffic growth to the previous annual double-digit level.
Political unrest has been traditionally billed as the main impediment to international tourist arrivals.
But aircraft movements through AoT-operated airports are expected to grow only 5%, lower than the 9% rise the previous year when 609,937 take-offs and landings were registered.
Mrs Poolsiri said the projected slower growth was due to the fact low-cost carriers were rationalising flight capacity, which expanded by 30% in the last fiscal year.
AoT envisages a significant recovery in both international passenger traffic volumes and aircraft movements in the current fiscal year with double-digit growth.
International passenger traffic is projected to increase by 15% from 51.2 million in the previous year and international aircraft movements are expected to surge 10% from 324,792.
Domestic passenger traffic and aircraft movements are likely to see marginal growth, equally at 2%, from 36.4 million and 285,145, respectively, a year ago.
That may signal that domestic traffic is inching towards saturation.
Mrs Poolsiri said the improved traffic projection boded well for stronger financial performance for AoT in the present fiscal year.
Revenue is expected to grow by at least 10% over last year's level of 39.8 million baht, on
the expectation of higher collection of the passenger service charge, better known as airport tax, from international passengers.
Meanwhile, net profit is likely to surpass the 12.2 billion baht recorded last year, Mrs Poolsiri said.
The Thai bourse forbids listed companies from divulging earning projections.
AoT saw a 25.3% decline in net profit last fiscal year, due mainly to lower foreign exchange gain, inflated impairment of assets and a slowdown in air traffic.
Foreign exchange gain for the year fell by 88.4% to 364 million baht, from 3.13 billion baht.
Loss on impairment of assets grew by 3.34 billion baht, or around 102%, due to the reversal of impairment of assets at Don Mueang amounting to 3.60 billion baht, and 83.6 million baht at Mae Fah Luang–Chiang Rai airport.