Shanghai International Airport Co Ltd yesterday reported a profit increase of 12 percent backed by rising passenger traffic and cargo volume.

Its net profit grew to 1.69 billion yuan (US$241.6 million) last year from a year earlier, according to its annual report filed to the Shanghai Stock Exchange.

The company's revenue rose six percent to 3.14 billion yuan, while earnings per share increased from 0.79 yuan to 0.88 yuan. The company is a listed arm of Shanghai Airport Authority, which runs Pudong International Airport and Hongqiao International Airport in the city.

"Its revenue was similar to our estimation, but its throughput growth was a little lower because it hadn't sufficient facilities to handle more passengers and air-traffic control was tight in East China," said Li Jun, an analyst with Everbright Securities Co.

Pudong International Airport handled 28.92 million passengers last year, rising 9.29 percent from a year earlier, and cargo and mail volume rose 18.05 percent to 2.56 million tons.

"Since a new terminal and a runway were put into operation at Pudong International Airport, we expected its growth of throughput would be accelerated but its profit would be impacted by the lower landing and take-off fees paid by carriers," Li said.

The company said that Pudong airport is expected to handle 60 million passengers in 2015, more than double the current volume, and 4.2 million tons of cargo.

Earlier, Shanghai International Airport reported that it may lose 10 percent in revenue this year after the aviation watchdog imposed cuts in landing and take-off fees by foreign and domestic airlines in March.

The company also expects a growth in labor and operating costs on the new facilities, it said.

Its shares rose 4.68 percent to 24.60 yuan yesterday.

(Shanghai Daily March 31, 2008)