Airports of Thailand (AOT) said Tuesday it expects higher passenger numbers to drive revenues up 16.6 percent to 14 billion baht (USD$343 million) in the financial year ending September 30.

A tourism boom and the launch of low cost airlines would help increase traffic, senior executive vice president Supatra Meesawan said in an interview.

"Our business is growing continually this year. Passenger traffic is increasing a lot after it was affected by SARS last year. Plus low cost airlines are helping add to it," she said.

The firm expects to carry 43 million passengers in this fiscal year, up from about 36 million in the previous year.

In the first six months to March, it has carried 22.5 million passengers, Supatra said.

The firm planned a dividend payout of about 25 percent of its 2004 net profit after its legal obligation to add to reserves, Supatra said.

But second-half earnings could be constrained by foreign exchange movements because the company has a high level of yen-denominated debt, Supatra said.

The firm's debt burden is expected to rise in the second half as it takes on more loans from the Japan Bank for International Cooperation (JBIC). It pays an average of two percent interest on debt it owes to JBIC, its only lender.

State-owned Airports of Thailand made a net profit of 2.17 billion baht (USD$53.18 million) in its first six months to March, down from a 2.83 billion baht profit in the same period a year earlier. It made a net profit of 3.8 billion baht in the previous year.

AOT was listed in March after the government sold 412 million shares, a 30 percent stake, to raise 17.3 billion baht in Thailand 's biggest initial public offering this year.

AOT, which operates Bangkok 's Don Muang Airport and four other international airports around the country, is constructing a new international airport, Suvarnabhumi, east of the capital.

Supatra said the Suvarnabhumi Airport was on schedule to open by the end of September 2005.

(Reuters)

From :  AIRWISE  News,  Friday  July 2,  2004