Saudi Airlines Catering’s net profit dropped 8.27 percent after Zakat and tax in the first half of the year, a local media report said. The company’s net profit fell to SR220.6 million in the first half of the year compared to SR240.4 million during the same period last year.
Saudi Airlines Catering attributed the drop in net profits to the adoption of IFRS 16 from January. IFRS 16 is an international financial reporting standard providing guidance on lease accounting.
The company said that the adoption of IFRS 16 ‘substantially increased’ its interest costs.
Saudi Airlines Catering’s revenue increased 6.8 percent to SR1.07 billion in the first half of the year compared to the same period last year.
In July, the General Authority of Civil Aviation (GACA) welcomed proposals for operation, management and maintenance of duty free and duty paid shops in King Abdulaziz International Airport (KAIA) terminal one.
Lagardère Travel Retail along with Saudi Airlines Catering and Arabian Ground Handling Logistics was awarded the contract to operate commercial space in KAIA’s existing facility.
KAIA’s expansion is spread across three phases with a focus to setup a world-class commercial centre and a key hub on the Islamic front.
The airport’s phase one was completed in 2017, with a capacity to handle 30 million passengers along with 46 gates for international and domestic flights. With that, phase two is slated for 2025 and will have a passenger capacity of 43 million. Phase three is scheduled for 2035 with an 80 million passenger capacity.
General Authority of Civil Aviation has implemented new airport standards to optimise and improve the customer experience of Hajj pilgrims arriving at Jeddah and Madinah.
According to a media report, the GACA authority said, “To improve services at airports GACA staff observe the time spent and the services used by pilgrims from the moment they arrive to when they depart.”