The financial year 2022 has been deemed the “worst performing year in the Authority’s 38-year history since inception in 1984” due to a recorded loss of over $20 million.
The Samoa Airport Authority has acknowledged the going concern raised by the Auditors of their financials as of 30 June 2022.
According to the Airport’s annual report for the year under review, the operating loss for the year ended 30 June 2022 was $21.10 million, and in 2021 the Net Loss was $11.90 million.
The report says the Authority’s financial statements have been prepared on a going concern basis.
However, the Authority’s Board is adamant that its ability to continue as a going concern is a significant consideration. This is due to a net loss of $20.6 million recorded during the financial period 2022.
But as of 1st August 2022, the government opened its border to overseas travel due to COVID-19 restrictions being lifted, more flights and passengers increasing, and operations returning to normal.
The Authority is estimated to slowly recover at the end of the financial year 2023 to 2024, and going concern will no longer be an issue.
This will reduce doubts about whether SAA will recover from COVID-19 effects.
The annual report notes the sustained border restrictions brought on by COVID-19 over the past three years continued to challenge the viability of the Authority’s operations.
Exacerbated further by detecting the virus in the community, the stretching of already diminished resources to provide, maintain and manage safety was increasingly approaching critical levels.
With the airport closure, all revenue streams of the Authority were adversely affected, concluding FY 2022 with a loss exceeding $ 21 million Tala.
Passenger volumes fell to levels comparable to numbers in the late 80s.
The impact of the passenger decline was felt across alt aeronautical and non-aeronautical activities, prompting the Authority to offer support through a relief package, aptly known as ‘space retention occupancy rate’.
This assistance to the airport business community relates to approximately $1miIIion during the fiscal year for those tenants that made the hard decision to stay.
Although challenging, they continued with their ‘Air Service Incentive Program’ (ASIP), which provided the Pago Pago flights as a new route from Faleolo to operate and offered a total of $100,000 over 3 years.
This financial period in question witnessed a significant workforce movement to the seasonal working scheme as an alternative amidst the uncertainties of the airport business caused by the closures of international borders.
The remaining 225 personnel comprises of qualified professionals, air traffic controllers, certified rescue and security officers, tradesmen, technicians and general staff, all withstanding the pressure to maintain the safety and security of Samoa airports.
