|2017-18 Result||2018-19 Result||2019-20 Target||2019-20 Result|
|Net Profit After Tax (NPAT) Net profit after tax||$74.5m||$62.4m||$55.7m||-$25.0m|
|Return on assets (RoA) |
Airservices annual earnings as a percentage of assets
Our financial results were deeply impacted by the measures introduced by governments in response to the COVID-19 pandemic, including domestic and international border closures, and the subsequent 91 per cent reduction in revenues from the limited air traffic operations in the final quarter.
We recorded a net loss after tax of $25.0m which represents a return on average equity of -4.0 per cent, compared to the planned target of 8.1 per cent. Return on regulated assets was also negative at -1.3 per cent compared to the planned target of 6.9 per cent. Prior to the COVID-19 pandemic, while there had been some softening of international airways activity in the first half of the year, we had anticipated making a net profit after tax of $21.8m against the target of $55.7m.
Our revenue from flight charges was $270.7m (or 24 per cent) lower than the target for the year. The Australian Government provided relief to the Australian aviation industry through this time, and we received $250m for the 2019-20 financial year which enabled us to waive $92.5m in charges for domestic aircraft operations and offset some of our revenue loss to ensure we continued to provide critical air traffic and aviation rescue and fire fighting services.
Our performance against these indicators demonstrates we continue to strive to be efficient and commercial.
- Despite these challenges, we took a number of steps to ensure our immediate and long-term financial sustainability, including:
- identifying savings of $30m in the final quarter of the year
- against these savings, recording a non-cash provision for doubtful debts of $22.3m for outstanding international debts at the end of the year.
Early in the reporting period, we returned a $200m capital repayment to our shareholder, the Australian Government, for the benefit of the wider Australian community and we reduced our prices by 2 per cent for the benefit of the whole aviation industry.
- Invested $295m in new capital assets to support two new runway openings, a new fire service at Whitsunday coast, and in the delivery of Civil & Military Air Traffic Management System (CMATS)-demonstrating our commitment to supporting the recovery and long-term growth of Australian aviation, despite the current challenges.
- Waived $3.5m in annual charges for Australia’s not-for-profit aeromedical providers, which provide vital services in regional and remote Australia.