CAG posts 36% drop in net profit for FY2019/20

AIRPORT operator Changi Airport Group (CAG) posted a 36 per cent year-on-year slide in net profit to S$435 million for the financial year ended March 31 after the pandemic sent the aviation industry into a tailspin.

However, revenue for FY19/20 increased 2.6 per cent to S$3.12 billion, lifted by Jewel which opened in April last year.

For the year under review, the group also recognised a one-off, non-cash impairment of assets in Brazil's Tom Jobim International Airport, in which subsidiary Changi Airports International holds a 51 per cent stake. This resulted in a S$200 million reduction in the bottom line.

Meanwhile, expenses were 6 per cent higher at S$2.25 billion owing to higher depreciation and operating expenses from Jewel and the expansion of Terminal 1.

"Strong travel demand as well as the opening of Jewel contributed to a commendable performance for the group in the first 10 months," the airport operator said in a media release. "However, business conditions deteriorated sharply in February 2020 as the Covid-19 outbreak started to spread globally."

CAG added: "The operating results of the group are expected to be materially and adversely impacted for the year ending March 31, 2021. However, CAG will continue to invest prudently to ensure Changi Airport's long-term competitiveness while maintaining high standards of safety and security." For instance, it has introduced new, contactless and cleaning solutions at the airport for a safer passenger experience.

In February and March this year, passenger traffic at the airport slumped 33 per cent and 71 per cent respectively year-on-year. Meanwhile, concession revenue also took a hit as travel demand dried up, falling 58 per cent for the two months. The airport had 62.9 million passengers for the financial year, down 5 per cent year-on-year.