Airport expansions prove to be costly
Airports Company SA (Acsa) is rapidly improving infrastructure at a number of airports in preparation for 2010.
But its R22billion expansion is starting to put pressure on its balance sheet and earnings.
Its net earnings for the year to March dropped 17,8percent as a significant increase in spending on infrastructure, higher costs and lower tariffs offset a steady increase in passenger numbers and revenue.
Interestingly, the increase in revenue was for the most part due to non-aeronautical revenue - money from retail, (including parking), property rentals, hotel operations, car hire and advertising.
During the year, it spent R5,2billion on infrastructure development on its airports.