(Reuters) -Athens International Airport (AIA) posted a 4.8% drop in nine-month net profit on Monday despite increased passenger traffic as rising operating costs and a larger variable concession fee
Athens International Airport Reports 4.8% Decline in Net Profit
Financial Performance Overview
(Reuters) -Athens International Airport (AIA) posted a 4.8% drop in nine-month net profit on Monday despite increased passenger traffic as rising operating costs and a larger variable concession fee offset modest revenue gains.
Revenue and Expenses Analysis
The operator of Greece's main gateway said that net profit for the nine months to September 30 fell to 185.8 million euros ($216.7 million) from 195.1 million euros a year earlier.
Impact of Tourism on Economy
Operating expenses surged 14.1% year-on-year to 180.1 million euros, driven by a higher variable Grant of Rights fee, increased staffing and outsourcing to meet demand, minimum wage hikes, elevated electricity costs, and higher maintenance provisions, AIA said.
Total revenues and other income rose 3.5% to 526.9 million euros, supported by 6.7% growth in passenger traffic to 26.2 million and regulated airport charge adjustments.
Revenue from air activities rose 2.5% to 397.5 million euros, while non-air revenue climbed 6.7% to 129.5 million, aided by retail growth despite disruptions in car parking, AIA said.
Tourism is a key economic driver for Greece as it accounts for more than a quarter of its economic output.
($1 = 0.8575 euros)
(Reporting by Antonis Pothitos; Editing by David Goodman and Conor Humphries)
