By Chinelo Obogo
Chairman, Nigerian Aviation Handling Company (NAHCO), Dr. Seinde Fadeni, has revealed that the company made N3.8 billion profit before tax in year 2022, a 315 per cent increase from the previous year’s figure of N925 million.
Speaking during the company’s 42nd Annual General Meeting held in Lagos recently, he said the profit realised by the company was due to a combination of factors, including the increase in aircraft handling rates, on-boarding of new routes by some of its loyal clients, expansion of their services and improved efficiency in operations.
“Our company, just like the industry, remained resilient, performing admirably and achieving some significant milestones, thereby delivering value to our shareholders. Our group revenue for the year 2022 was N16.7 billion, a 63 per cent increase from the previous year’s figure of N10.2 billion. This was due to a combination of factors, including the increase in aircraft handling rates, on-boarding of new routes by some loyal clients such as Qatar Airways expansion into Kano and Abuja routes; and Ethiopia Airlines addition of Enugu route to its destinations.
“Air Peace commencement of Port Harcourt – Cameroon route; the expansion of our excellent services, improved efficiency in our operations and increased reliance of our clients on our ability to deliver, all contributed to the positive results.
“Our profit before tax is N3.8 billion, a 315 per cent increase from the previous year’s figure of N925 million,” he said.
He said despite predictions by experts that it would take years before the industry recovers due to covid, they were able to deploy effective strategy and improve their services in order to speed up recovery.
“It is basically strategy and increase in our excellent service. So, it is just doing what we think is the right thing. No doubt about it that the tariff also helped us. For a long time, we have been charging less than other West African and Africa countries’ prices, which even made it possible to live up to expectations in terms of equipment and other things; to run the business, including our staff, manpower and commitments. So, it helped to some extent.
“The quick recovery rates happened in almost every part of Africa and not just in NAHCO alone. In that year of COVID, Ethiopian Airlines declared a profit of over $1 billion and it was just strategy. When some airlines parked their planes, Ethiopian turned their own planes to cargo. There was serious cargo movement, it didn’t stop, and we are part of the people that made money out of it.
“So, it had an impact on us in the sense that all those periods we were working. What we also did strategically is that some of our staff who were not essential workers, we made sure that they were at home, and we were paying them about 50 per cent of their salaries. Because this is a skill organisation, we put so much money in training them. So, for you to get another set of people, it will take you a lot of time and resources to train them. So, what we did was ask them to stay at home and pay them. What we just removed was transport and some other allowances. It was just strategy and doing the right thing and making sure that we reduced our cost. That is why we were able to overcome these challenges,” he said.