Shareholders pocket Sh2.5 billion as Swissport’s profit soars

Dar es Salaam. Shareholders of Swissport Tanzania Plc have approved a dividend payout of Sh2.5 billion following a strong financial performance in 2024 that saw the company record a profit before tax of Sh8.6 billion.

The announcement was made during the firm’s 40th Annual General Meeting held in Dar es Salaam at the weekend, where the company also reported a 47 percent increase in pre-tax profit compared to Sh5.5 billion posted in 2023.

Speaking during the meeting, Swissport’s interim managing director, Mr Shamba Mlanga, attributed the company’s robust financial results in improved airline operations, strategic customer retention efforts, and operational stability.

“Our revenue rose by 26 percent to Sh51 billion in 2024, up from Sh40.5 billion in 2023, driven by strong growth across multiple service areas including cargo handling, lounge services and ground handling,” said Mr Mlanga.

He added that operating costs also rose by 22 percent to Sh42.1 billion, up from Sh35.1 billion in the previous year, due to inflationary pressures and labour-related expenses.

However, efficiency measures and cost-control initiatives helped to sustain profitability, he said. Among the major revenue drivers was the Twiga Lounge by Aspire at Kilimanjaro International Airport (KIA), which Swissport operates in partnership with Air Tanzania.

The lounge generated Sh1.99 billion in revenue, marking a 34 percent increase from Sh1.49 billion in 2023. Mr Mlanga said additional factors contributing to the improved performance included a rise in international passenger traffic, growth in tourism, increased cargo export volumes, and favourable economic conditions.

He noted that service delivery remained consistent with agreed Service Level Agreements (SLAs), and any instances of non-compliance were promptly addressed with customers through corrective actions.

“Our focus on maintaining high standards of service and strengthening client relationships has enabled us to not only retain our key clients but also secure new contracts, including KLMAir France and Zambia Airways,” Mr Mlanga said.

He further highlighted the company’s strong safety record, noting that Swissport recorded no major safety or security incidents, aircraft damage, or lost-time injuries in 2024.

“The successful implementation of the Integrated Weighing Scale System (IWS) has resolved long-standing issues related to manual data entry errors in cargo operations. This digital upgrade has enhanced accuracy and minimised operational risk,” he said.

Mr Mlanga confirmed that the company remained fully compliant with safety and security regulations set by the Tanzania Civil Aviation Authority (TCAA) and the Tanzania Airports Authority (TAA).