the revenue of the airport is mainly divided into two parts, one is aviation business and the other is non-aviation business.

aviation business

aviation business is the charge for taking off and landing of aircraft.

like domestic routes, taking off and landing once is about a few hundred to one or two thousand.

The aviation business is a public utility, which is actually regulated and has clear charging standards. For this part of the business, the airport does not have too strong pricing power.

in the long run, the revenue growth rate of this part of the business is relatively low.

non-aviation business

non-aviation business, that is, advertising, catering, store rental and other businesses.

this business directly determines the profitability of the airport. The profitability of different airports is different, mainly due to the differences in non-aviation business.

A small airport can only provide some simple services such as catering and store sales, and its advertising revenue is relatively low. Therefore, the income of small airports mainly depends on aviation business. Keep yourself from losing money and be able to operate.

for the shareholders of small airports, the long-term benefits are just so-so.

But big airports can provide high-end shopping and even introduce duty-free shops.

In fact, the duty-free shop rental business is the biggest advantage of large airports compared with small airports.

Duty-free shops also account for the highest proportion of non-aviation business in major airports. The airport can deduct a percentage from the shopping amount of duty-free shops at the airport.

and the airport has certain pricing power for this part of the business.

in the long run, the revenue growth rate of this part of business is much higher than that of aviation business.

like the leading Shanghai airport, the ROE has been above 1.5% for a long time, but Guangzhou Baiyun airport and Shenzhen Baoan airport have only single digits.

of course, if the small airport is developed in the future and supplemented with duty-free shops and other businesses, the revenue will also increase.