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CPA net income rises 20 percent
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Posted on Jul 20 2005
Despite a slight decline in revenues, the CNMI airports’ net income increased by 20 percent due to cuts made by the Commonwealth Ports Authority on personnel and other costs.
CPA’s latest financial report shows that the Saipan, Tinian, and Rota airports earned a combined net income of $2.33 million during the first nine months of fiscal year 2005. This represents an increase of almost $400,000 from the airports’ net earnings during the same period last year.
CPA comptroller George Palican stressed, however, that this amount is not available for CPA operations; the ports authority needs the extra cash to pay its debts and to maintain bond liquidity.
From October 2004 to June 2005, the CNMI’s aviation revenues totaled $5.88 million. The 4-percent growth in aviation revenues resulted mainly from the $253,543 saved from last October’s termination of an incentive program for airlines that brought in more than their average number of passengers to the Northern Marianas.
However, these savings were easily offset by a decline of $254,933in non-aviation revenues.
Non-aviation revenues, which include rental income, concession fees and parking fees, reached only $3.62 million in the first nine months of FY 2005, a 6.6-percent drop from last year.
Overall, the CNMI airports generated total operating revenues of $9.5 million for the first three quarters of the current fiscal year, a 1-percent decline compared with the same period last year.
Meanwhile, cost-cutting measures implemented by CPA resulted in a reduction of $445,744 in airport operational expenses.
From October 2004 to the end of last month, CPA spent only $7.17 million to run the three CNMI airports, registering a 6-percent cut in total expenses.
Savings on personnel expenses accounted for about three-fourths of the cut, with salaries being reduced by $270,678 and employee benefits by $45,489.
CPA also saved $132,478 in repairs and maintenance expenses; $77,121 on contracts and professional fees; $27,571 on fuel expenses; and $23,616 in utility costs.
