Skyway Aviation Profit Falls More Than 50 Per Cent Despite Revenue Growth in H1 2026

Skyway Aviation Handling Company Plc (SAHCO) reported a more than 50 per cent decline in profit for the first half of 2026 despite revenue growth, as rising operating costs and higher administrative expenses eroded margins.

The aviation ground handling company posted revenue of N23.01 billion for the six months ended June 30, 2026, up from N21.06 billion recorded in the corresponding period of 2025. However, profit after tax fell to N3.85 billion from N8.14 billion, representing a decline of about 52.7 per cent.

The weaker earnings performance came as the company’s direct costs increased sharply to N10.75 billion from N6.59 billion, while administrative expenses climbed to N6.58 billion from N4.66 billion in the first half of the year. These increases offset the gains from higher revenue.

Consequently, profit from operations declined to N6.02 billion, compared with N10.03 billion a year earlier, while profit before tax fell to N5.83 billion from N9.96 billion. Tax expenses also increased to N1.98 billion during the period.

The company’s basic earnings per share declined to 284 kobo, down from 601 kobo in the corresponding period of 2025, reflecting the weaker profitability.

Passenger handling and related services remained SAHCO’s largest business segment, contributing N16.45 billion to revenue during the six months.

Import cargo handling generated N5.54 billion, up from N3.84 billion a year earlier, indicating stronger demand for cargo services. Export cargo handling, however, declined slightly to N1.02 billion from N1.15 billion.

Despite the decline in profit, SAHCO continued investing in its operations, spending N6.76 billion on property, plant and equipment during the reporting period.

The company’s property, plant and equipment increased to N53.78 billion as of June 30, 2026, from N48.53 billion at the end of 2025, reflecting continued investment in aviation ground handling infrastructure and operational assets.

Operating activities generated N7.97 billion in net cash during the period. However, heavy capital expenditure, dividend payments, and loan repayments contributed to a decline in cash and cash equivalents to N3.86 billion, down from N4.88 billion at the beginning of the year.

Meanwhile, total assets rose to N86.55 billion, while shareholders’ equity increased to N64.42 billion, underscoring the company’s continued investment in expanding its asset base despite weaker earnings.