Nicola Mawson
Airports Company South Africa (Acsa), which reversed its loss-making position in the 2023/24 year to March, anticipates passenger travel through its airports to return to 2019 levels in the current fiscal year.
Speaking during the results presentation yesterday, Acsa CEO Mpumi Mpofu said 8.5 billion people flew out of global airports in 2023, 93.8% of the 2019 pre-pandemic level, and a 27.2% gain on 2022 as China reopened.
“Today marks a good day for all of us at Airports Company. We are going to present to you a success story. We have reached the years of trials and tribulations as the result of Covid,” said Mpofu as the company’s previous loss turned into a profit.
In the current year, Mpofu said there was an expectation that levels will return to 2019 global levels to 9.4 billion passengers, led by Latin America, the Caribbean and China.
“That steady increase is very exciting for us,” she said.
Acsa reported an 88% recovery level in passengers compared with a global average of 92%. Some 18 million people departed from South Africa’s airports in the reported year, while 228 aircraft landed, a 92% recovery rate.
Mpofu said, given increased air traffic, revenue for the state-owned company would move back to pre-Covid levels at the end of the current financial year.
“We have shown remarkable resilience and adaptability,” she said. “The position of Acsa being in the doldrums has ended.”
Of having met 10 out of 11 key performance indicators, Mpofu said: “This is a resounding success.”
The CEO said Acsa’s corporate tactic was in transition from the recovery and sustain strategy implemented to counter the effects of Covid-19 to one of innovate, grow and sustain.
“This illustrates the new path we are taking as part of our growth strategy,” she said.
Acsa will be prioritising innovation, with the aim of driving sustainable growth and contribute to transforming its operational landscape.
“Changes in business travel behaviours, spurred by technologies such as video conferencing and virtual platforms, highlight the urgency for rapid adaptation,” its integrated annual report, released yesterday, said.
Five years ago, Acsa went through a large cost-cutting phase while also limiting capital spend.
While it continues to maintain efficiency, it will be spending R10.1 billion over the next three years to expand in areas such as cargo, bus stations, runways, and terminal expansions, among others.
Mpofu said the change travellers will see at airports will be “as big as it was” when it last revamped for the 2010 Soccer World Cup. Some R21bn will be spent up to March 2028.
Acsa chief financial officer Luzuko Mbotya said Acsa had “maintained a strong financial position” as it focused on key metrics to keep costs down.
Revenue gained 16% to R7bn, while Acsa reported a profit of R472 million, a 201% increase on last year’s loss of R466m.
The company, which manages airports across the country in nine major business and tourism hubs, paid a total dividend of R48m, the first payment to shareholders since 2019.
BUSINESS REPORT