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Narita Airport Sees H1 Sales and Profits Increasing for First Time in 3 Years – Revising Consolidated FY2010 Financial Forecast Upward

November 22nd, 2010
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Narita International Airport Corporation (NAA)Narita International Airport Corporation (NAA) posted a 9.4 percent year-on-year increase of operating revenues to 98.0 billion yen for the first half of the fiscal year 2010 ending March 31, 2011 which covers the period of April 1 to September 30, 2010. The NAA’s excellent financial results for the first half of FY2010 are driven by a sharp increase in flight operations and in aviation passenger handled as well thanks to the new entry of international airlines as Narita Airport expanded its airport capacity for more flights. Operating profit surged by 90.5 percent to 21.9 billion yen. According to NAA, although operating costs rose due to the depreciation after completion of the 2500 meter-runway B and also other expenses incurred by an increase in revenue, nevertheless, Narita International Airport (NAA) registered its excellent operating profit since operating costs such as the retirement benefit expenses, the cost of replacement of facilities and other cost-cut declined by 999 million yen and the selling and general administrative expenses also decreased by 987 million yen, explained NAA. Ordinary profit jumped by 146.7 percent to 17.6 billion yen and net profit also soared sharply by 181.2 percent to 9.9 billion yen, thus registering an increase both in operating revenues and in net profit for the first time in three years for the first half of the fiscal year.

Narita Airport The number of aircraft movements at Narita Airport rose by 4.7 percent to 99,000 during the first half of the fiscal year 2010 boosted by the new entry of international carriers as the take-off and landing slots were expanded to 220,000 after the summer schedule this year. The number of passengers handled at Narita Airport also increased by 8.9 percent to 17,610,000, recovering from the sluggish economy and the effects of the pandemic of the H1N1 new influenza.

At Narita Airport, while income from the airport usage charges fell due to the lowered international landing charges from November 2009, the passenger facility charges were revised upward with revisions to the passenger related fees and the number of passengers handled continued to rise. Consequently, NAA’s airport operations posted operating revenues of 55.2 billion yen, up by 11.5 percent from the prior-year period. Retail operations saw an increase in merchandising income as the number of customers continued to increase, posting a 10.1 percent year-on-year increase to 26.3 billion yen. Railways operations also achieved operating revenues of 542 million yen, sharply up by 430.6 percent as Narita International Airport (NAA) inaugurated the Narita Sky Access in July 2010.

Accordingly, Narita International Airport Corporation (NAA) revised its consolidated financial forecast for the fiscal year 2010 upward. While commenting, “We still have to carefully watch if there will be any alarming downturn,” reflecting Japan Airline’s (JL) ongoing flight reductions at Narita, the further expansion of international flights at Haneda Airport and the current uncertainty of the economic climate, Kosaburo Morinaka, NAA’s President and CEO, concluded that operating revenue is forecast to rise by 1.7 percent to 189.4 billion yen from 186.3 billion yen previously estimated, operating profit by 10.5 percent to 28.3 billion yen from 25.6 billion and ordinary income by 19.5 percent to 19.6 billion from 16.4 billion. Net profit is forecast to surge by 22.2 percent to 9.9 billion from 8.1 billion yen for the fiscal year 2010.

LCC-Dedicated Terminal Expected To Be Newly Built, NAA to Announce Its Direction during November This Year

Morinaka expressed his intention to announce the strategy for direction by the end of November. Narita International Airport Corporation (NAA) is pursuing dialogue with several low cost carriers (LCC) about concrete conditions for flights operating to and from Narita. “If the flight operations by LCCs become feasible, it would be from the beginning of winter schedule next year,” said Morinaka. Should there be any LCC starting to operate earlier, he added, NAA could handle operations by LCCs, making effective use of the existing airport facilities. Meanwhile, Skymark Airlines (BC) announced its intention to serve Narita Airport. Commenting on the announcement, he said, “The current facility at Narita Airport can handle flight operations by Skymark Airlines (BC).” Narita International Airport Corporation (NAA) is said to be coordinating with the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) in order that Skymark Airlines is able to use the take-off and landing slots which are not currently used by Japan Airlines and All Nippon Airways.

Source: Travel Vision

Travel Vision Inc. provides information on the travel industry in Japan via "Daily Travel Vision", a Japanese-language e-mail newsletter, and the "Travel Vision" website. There are nearly 110,000 people working in the Japanese travel industry, and Travel Vision is proud to be bringing travel news to more than 30,000 people through Daily Travel Vision.

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