Schiphol Group Profit Triples

Schiphol Group Profit Triples

Schiphol Group, operator of Amsterdam airport, booked a 22 percent increase in freight traffic as first half net income tripled from a year ago.

The increase in profit to $87.2 million in the first six months from $28.2 million a year ago was driven by growth in the group's consumer and real estate units, which offset a decline in the group's core aviation business.

The company, which also operates Rotterdam and Eindhoven airports, saw revenue shrink 1.5 percent to $687 million from $675 million.

Cargo volume rose to 719,000 metric tons from 591,000 metric tons a year ago, the bulk accounted for by Amsterdam, Europe's third largest air cargo hub and number 11 on the JOC list of top 30 international cargo airports. Cargo traffic totaled 1.286 million metric tons in 2009.

The company said the cost of introducing new security measures and installing new equipment following the abortive bombing of an Amsterdam-Detroit flight last Christmas drove the aviation unit into the red.

The volcanic ash cloud which closed European airspace for a week in April cost Schiphol Group $15 million in lost revenue and shrunk its profit by $18.9 million.

The company said it expects to book a full year net profit of $202 million, up from its earlier forecast of $166 million on a projected 1.5 to 2 percent increase in passenger traffic at Amsterdam.

-- Contact Bruce Barnard at brucebarnard47@hotmail.com.