Swedavia's Interim Report for January-March 2023: Continued recovery in air travel contributes to increased revenue and improved net income

The first quarter of the year was dominated by the continued recovery in air travel, with 66 per cent more passengers at Swedavia's airports compared to the first quarter last year. The growth in travel and thus increased commercial revenue contributed to increased revenue and better net income overall. However, Swedavia's operations continue to be affected by the recovery phase under way after several years of pandemic, and net income for the period was a loss of 199 million Swedish kronor. Swedavia now continues to prepare, together with its partners at the airports, for an intense summer of travel.

During the first quarter of the year, Swedavia's airports had 6.7 million passengers, a 66 per cent increase compared to the same period in 2022. The trend was affected primarily by an increase in international travel at Stockholm Arlanda Airport and by airlines' continued investments in the Swedish market. With more than 300 destinations on offer this summer, the range of destinations available at Swedavia's airports is largely back to the pre-pandemic level.

"It is naturally gratifying that, with more passengers and increased commercial activity at the  airports, we increased revenue and improved cash flow. However, the number of passengers that can contribute to covering the fixed costs of operations is still 24 per cent below the pre-pandemic figure, while adjustments in operations to the strong growth in passenger volumes are driving higher costs. The first quarter is also Swedavia's weakest seasonally in terms of revenue and net income," 
says Jonas Abrahamsson, Swedavia's president and CEO. 

Swedavia's net revenue for the first quarter totalled 1,289 million kronor (882), an increase of 407 million kronor or 46 per cent compared to 2022. Operating income was a loss of 215 million kronor
(-325), while net income for the period was a loss of 199 million kronor. Cash flow from operating activities was a negative 19 million kronor (-169), an improvement of 150 million kronor compared to the same period last year.

Swedavia now continues to prepare for the summer together with its partners at the airports. Despite an uncertain global situation, airline bookings and other indicators suggest that travel will be intense during the peak season this summer.

"We and our partners are doing our utmost to ensure that the passenger experience will be as good as possible. Among other steps, we have carried out major recruitment efforts at Arlanda and optimised the airports' terminals and flows. However, many operators need to work together to deliver a smooth travel experience, and in Europe the industry faces a number of challenges that risk affecting the efficiency of air travel. They include possible strikes and protest actions, the capacity situation for airlines and ground handling companies, and crowded airspace. Even without the challenges the industry faces across Europe, there may be longer waiting times in some periods for every process at the airport during what is the year's most intense travel period," says Jonas Abrahamsson.

At Arlanda, the new state-of-the-art security checkpoint in Terminal 5 will gradually be placed in service during the summer in an expanded section of the terminal. After the summer, the plan is to also open the first phase of the airport's new 11,000 square metre marketplace, with a significantly expanded commercial offering.

"We are convinced that this development will be experienced as a major boost by our passengers, who meanwhile will be affected to some extent by the refurbishment work and at times by a narrower range of options before everything is in place," says Jonas Abrahamsson.

 KEY FINANCIAL FIGURES

The full Interim Report is available on Swedavia's website: About Swedavia - Financial information: www.swedavia.com/about-swedavia/financial-information/

Swedavia AB (publ) is required to disclose such information under the EU Market Abuse Regulation and the Securities Market Act. The information was provided by the contact person below for publication onApril 28, 2023, at 12:00 noon CEST.

For further information, please contact Robert Pletzin, Head of Media Relations at Swedavia, or Swedavia's press office at tel. +46 (0)10-109 01 00 or press@swedavia.se. 

The Swedavia Group owns, operates and develops ten airports across Sweden. Our role is to create the connectivity Sweden needs to facilitate travel, business and meetings. Safe, satisfied passengers are the foundation of Swedavia's business. Swedavia is a world leader in developing airports with the least possible environmental impact. In 2022, the Group had annual revenue of about 4.8 billion Swedish kronor and approximately 2,400 employees.