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Airport doubles net income in 1st trimester
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Posted on Feb 23 2005
The Commonwealth Ports Authority more than doubled the net income of its airport division during the first four months of the fiscal year, as compared with the same period last year.
Data showed that the airports earned a total net income of $1.17 million from October 2004 to January 2005, an increase of 135 percent over net revenues collected in the same period in FY 2004.
The airports registered the income growth despite a minimal decline in the number of enplaned passengers, which reached only 200,147, during the first four months of FY2005. This was 0.2 percent lower than the 200,523 passengers that departed from CNMI airports in the first four months of FY2004.
CPA’s financial report shows that the ports authority achieved the improved income through an increase in revenues as well as a cut in expenses.
Airport revenues reached $4.3 million during the first four months of FY 2005, 7 percent higher than the $4.03 million collected last year.
Meanwhile, expenses at the airport went down by $405,357 or 11 percent. This came after CPA cut personnel costs by $159,626 and maintenance and operating expenses by $458,966.
During the first four months of FY 2005, CPA spent $2.26 million for personnel and $1.12 million for maintenance and operations.
The financial report further shows that the airports’ actual net income exceeded by 67 percent, or $289,825, CPA’s budget for the four-month period.
Moreover, the airports posted a bond debt coverage ratio of 1.47, which means that the division generated an income that is 47 percent greater than its required bond payment.
CPA’s bondholders require only a bond ratio of 1.25.
