Zurich Airport overcomes the crisis on its 75th birthday
Published: Friday, Mar 8th 2024, 14:30
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Zurich Airport has almost completely overcome the coronavirus crisis in its anniversary year. Although passenger numbers were still below pre-crisis levels, sales and operating profit were already higher again. However, the Group sees further potential in the non-flight business in particular.
Turnover rose by 21% to 1.24 billion Swiss francs in 2023, as the airport operator announced on Friday. The 2019 level was also exceeded by 2 percent. This is thanks to the increasingly strong non-flight segment, which includes commercial revenue, parking garages, real estate and international investments.
Special dividend to mark the anniversary
At CHF 677 million, operating profit (EBITDA) was also higher than in 2019, although net profit was not quite enough. However, at 304 million, it was almost half that of the previous year.
Shareholders should also benefit from this. A dividend of CHF 4.00 plus a special dividend of CHF 1.30 beckons for the anniversary. A total of CHF 5.30 per share will therefore be distributed, compared to CHF 3.50 in the previous year.
Problems with punctuality
In the flight business, both revenue and passenger numbers remained below the pre-coronavirus level. According to the airport, this level is not expected to be reached again until 2025. After that, the figures are expected to grow by 2 to 3 percent per year above the pre-crisis level.
Even last year, the airport operator was not always able to cope with the heavy influx of passengers following the pandemic. The new airport director Lukas Brosi, who has been in office since last May, acknowledged deficits and vowed to improve. Brosi explained that staffing levels were sometimes very low last year. Particularly in spring, there were long waiting times on several occasions.
The task now is to improve. The company is also dependent on external factors such as the weather or handling at other airports. "However, we must achieve more stable operations in future," admitted the CEO.
Yes to slope extension as a vote of confidence
Meanwhile, Brosi sees last Sunday's clear yes from the Zurich electorate to the runway extension as a vote of confidence. "It shows awareness of the importance of Zurich Airport," he said in an interview with the news agency AWP.
In response to fears among the population that there would now be more flights and more aircraft noise as a result, he added: "We have always said that there is no direct link between the runway extension and flight capacity." However, according to the CEO, the runway extension is not likely to be built until 2030 anyway.
Need for action with the Circle
In view of rising passenger numbers, the airport management is now expecting even more turnover and an even higher profit in the current year. However, the management sees future growth opportunities above all in the non-flight business, not least in the international business.
The company is currently focusing on the completion and commissioning of a second capital city airport in Delhi. According to Brosi, the project, which has been announced for the end of 2024, is on track.
The company acquired a new airport in Brazil in 2023. The CEO went on to say that the company is busy with this for now. There are currently no new international transactions on the horizon.
Meanwhile, the airport director sees a slight need for action on the prestigious real estate project "The Circle". Overall, however, he is satisfied with the project: "Over 90 percent of the space has been let at very good rents." However, improvements will be made over the next few months, particularly in the commercial area.
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