Orix and Vinci-backed airports enjoy revenue, profit gains

04 June 2019 - 12:00 am UTC

Kansai Airports, operated by Orix and Vinci Airports, reported Tuesday (4 June) that its revenues and profits for the fiscal year ended March 2019 rose across the board, successfully mitigating the debilitating impact of the post-typhoon falloff in passengers.  

The company, which operates three airports in Western Japan’s Kansai region – Kansai International Airport (KIX), Osaka International Airport and Kobe Airport – said it registered revenues of JPY 220.4bn (USD 2.0bn), a 7% gain from the previous year. Its net profit rose 5% to JPY 29.6bn for the latest fiscal year.

In September 2018, a powerful typhoon hit the region damaging KIX, which is built on an artificial island. The natural disaster caused a runway and other facilities to flood, while a tanker collided with a bridge linking the airport and the mainland.

However, a quick recovery in flight operations and continued strong outbound tourist demand helped mitigate the post-typhoon damages, the airport said today. After partially resuming flight operations on 7 September, KIX’s flight services were back to normal by 21 September.   

In addition, disaster-related revenue decline and loss worth JPY 6.3bn and JPY 8.0bn, respectively, have been moderated by casualty insurance coverage totaling JPY6.2bn during the latest fiscal year.  

The number of passengers that the three airports handled during the latest fiscal year were at a record high of 48.90 million, up 3% from the previous fiscal year. Meanwhile, the number of non-Japanese passengers using KIX – Japan’s third busiest airport – also hit an all-time high of 15.5 million passengers, up 3% from the previous fiscal year.

Over the next five-year period through 2023, the three airports will spend a combined total of JPY 135bn in capital expenditures, partly to repair runways and improve capacity at KIX.  

 

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