Gambia’s Aviation Sector Operating Expenses Exceed D328 Million

The Gambia Civil Aviation Authority (GCAA) has presented a comprehensive report detailing its operating expenses for the year 2022. According to the management of GCAA, operating expenses exceeded D328 million, which is approximately $4.5 million.

The management of GCAA presented a review of its activity report and financial statements for the year ended 31st December 2022 on Tuesday before members of the Public Enterprise Committee (PEC).

The report shows a 21 percent increase in operating expenses, including administrative expenses, staff costs, interest, and depreciation, during the year under review. According to management, these expenditures were incurred as a result of normal business operations such as staff costs and airport operations-related expenses.

The authority was able to turn an operating loss of the preceding year into an operating profit of D199.3 million in 2022, compared to a loss of D32.7 million in the previous year.

However, the authority recorded a net loss of D338.8 million in 2022, attributed solely to interest expenses amounting to D531.3 million.

“Out of the net loss resulting from interest expenses and similar charges, the exchange differences on long-term developmental loans contracted by the government and passed on to the GCAA account for 82.2 percent,” management said.

According to the authority, its operating performance for the year ended 31st December 2022 showed improvement, with turnover increasing by 74.03 percent to D618.8 million from D355.6 million in 2021.

The authority attributed this significant increase to recovery from the effects of the COVID-19 pandemic, while direct costs for the period rose by 40.9 percent to D83.9 million from D59.6 million in the previous year.

Management further reported that foreign exchange losses and interest charges amounted to D531.3 million in 2022, compared to D149.2 million in 2021, which significantly exceeded total operating expenses, total staff costs, direct costs, or any individual cost category incurred by the authority.

The authority registered a gross profit of D534.9 million in 2022, representing an increase of 80.7 percent compared to the preceding year.

Its loan portfolio increased to D3.004 billion as at 31st December 2022, from D2.625 billion in 2021, representing an increase of 14.4 percent.

The management is scheduled to reappear before the committee on a later date for the review, consideration, and adoption of its reports.

By Bakary Touray Jr