Airports Of Thailand Swings To Net Profit

December 15, 2011

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Airports of Thailand (AOT), the country's main airport operator, on Thursday reported a net profit for its fourth quarter, beating market expectations.

Analysts had expected the company to post a quarterly loss due to foreign exchange losses and rising costs.

Majority state-owned AOT, which operates six airports, said it made a net profit of THB160 million baht (USD$5.12 million) in the July-September period, against a net loss of THB643 million a year earlier and a THB27 million baht loss in the third quarter.

For its 2010/2011 financial year to September 30, AOT posted a net profit of THB2.53 billion baht, up from a revised THB2.04 billion a year earlier.

Analysts expect a weaker performance in the first quarter (October-December) as foreign tourists have cancelled trips because of severe flooding in Thailand. Traffic volume should bounce back once the situation returns to normal, they say.

The airport operator said it expected passenger traffic at its main Bangkok Suvarnabhumi airport to rise 5-6 percent to more than 50 million in its fiscal year ending September. 2012, playing down the impact of weak US and EU economies.

Don Muang airport in Bangkok, which had to close on October 25 due to flooding, remains closed.

(Reuters)