ACSA has returned to profitability

State-owned Airports Company South Africa (ACSA) has announced that it returned to profit in the financial year 2023/24. In 2023/24 it recorded a profit before tax of R1.4-billion (compared with a loss of R246-million in the 2022/23 financial year) and a profit after tax of R472-million (as against a loss of R466-million during the previous financial year). This was the group’s first after-tax profit since its 2020 financial year.

Revenues rose 16% from R6-billion in 2022/23 to R7-billion in 2023/24. Earnings before interest, taxes, depreciation and amortisation jumped 51% year-on-year, from R1.9-billion in 2022/23 to R2.9-billion in 2023/24. The group’s debt burden decreased from 24% to 17%.

Aeronautical revenues rose by 21% year-on-year, to R3.6-billion (from R3-billion). This was the result of an 8% rise in aircraft movements, a 16% increase in the number of departing passengers and 4.4% tariff increase.

Non-aeronautical revenues went up by 12%, over the same period, from R3.1-billion in 2022/23 to R3.4-billion in 2023/24. This was largely due to the improved trading conditions, with the biggest contributors being retail operations (R1.1-billion) and property rentals (R924-million).

Operating expenditures increased by 13% over the comparative period, to R4.1-billion in 2023/24, from R3.6-billion in the previous FY. The main factors in this increase were costs relating to (in ACSA’s order) maintenance, security, utilities, cleaning and employees. Employee expenditures rose to R1.6-billion in 2023/24, from R1.2-billion in 2022/23. This increase was the result of filling vacancies created by the Staff Cost Reduction Programme, which had been implemented from 2020, and the reintroduction of certain staff benefits and rewards.

“The transition from the Recover and Sustain Strategy to the Innovate, Grow, and Sustain Strategy, as well as the revised Financial Plan, provided a structured management approach and a means of resourcing the business in a way that has enabled the group to secure and safeguard its long-term sustainability,” stated ACSA. “Capital expenditure was limited to airport maintenance, refurbishments and rehabilitation, and efficiency and technology-related projects. A total of R568-million (2022/23: R422-million) was spent on those projects.”