Profit plummets at ACSA amid spiralling security costs
Airports Company South Africa has seen its profits fall by 58% in the year to end-March, due in part to a 50% rise in security costs.
"Such a major reduction in profit is very disappointing as much of our increased costs had a direct impact on our bottom line," said ACSA acting CEO Bongiwe Mbomvu.
"However, key positives remain. We have now produced a profit in all but one of the 26 years since the company was formed. We also received an unqualified audit and are proud of our record as a well-run state owned company that has never needed government support or guarantees."
ACSA said security costs rose due to regulatory requirements and heightened security measures implemented during the year. Mbomvu said the weak South African economy affected passenger numbers and viability of some local airlines, thereby impacting revenue from commercial activities.
Departing passenger numbers grew by only 1.3% to 21.1 million over the past year, and ACSA saw a consolidation in airlines.
Its revenue rose by almost 6% to R7.1bn and ACSA has reduced its debt by R2.3bn to R6.6bn. More than R10.5bn has now been repaid over the past six years.