Shanghai International Airport Co profits down in 2008

Nicole Mezzasalma

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The airports company’s profits fell by nearly 50% last year despite a 7% rise in revenue

Shanghai International Airport Co (SIA) recorded a 7% increase in operating revenue to Rmb3.35bn ($489.6m) in 2008 compared with the previous year, according to the China Daily newspaper. However, the good results were not enough to prevent a 49% fall in net profit to Rmb860m ($125.7m) due to investments in the expansion of Shanghai Pudong International airport.

The Civil Aviation Administration of China also cut landing and take-off fees in March 2008, directly affecting SIA’s profit by 10%, according to an analyst with CITIC China Securities. A fall in passenger numbers further hit the company’s bottom line—SIA’s airports handled 51.1m passengers in 2008, down by 0.85% on the previous year.