Swedavia's year-end report for 2023: increased travel, enhanced range of routes and destinations, as well as commercial investments are contributing to improved earnings and more satisfied passengers
Increased air travel, an enhanced range of routes and destinations, as well as increased commercial revenues contributed to improved earnings and more satisfied passengers. Net revenue increased by just over SEK 1 billion compared with 2022 to almost SEK 6 billion. There was positive development in operating income, but costs increased due to both higher passenger volumes and inflation. Operating income totalled SEK -318 million for the full year, compared with SEK -783 million in 2022.
“More passengers led to an increase in net revenue of SEK 1.1 billion compared with the previous year. Commercial revenue per passenger also continued to increase as a result of our updated commercial strategy, including the new marketplace at Arlanda. As the number of passengers increased, so did costs, which were also pushed up by inflation. The company's operating income continues to develop positively and cash flow from operating activities was positive during the final three quarters of the year. As travel increases, we will continue our efforts to return to sustainable profitability,” says Jonas Abrahamsson, President and CEO of Swedavia.
During the full year 2023, more than 32 million passengers travelled through Swedavia’s ten airports, which represents an increase of 17 percent compared with 2022 and is around 80 percent of the pre-pandemic level. International travel increased 19 per cent to almost 24 million passengers, while domestic travel increased by 10 per cent.
During the year, just under 40 new routes and nine new destinations were added at Swedavia's airports. SAS, Ryanair and Eurowings accounted for most of the new routes. Other major openings during the year included United Airlines, which returned with a route between New York and Stockholm Arlanda Airport; Wizz Air, which chose to establish operations at Arlanda in the autumn; and Royal Jordanian Airlines, which also established operations at Arlanda.
Swedavia’s net revenue for the full year amounted to SEK 5,931 million (4,846), which is an increase of SEK 1.1 billion compared with the previous year. Operating income totalled SEK -318 million (-783), which is an improvement of SEK 465 million. Last year’s operating income was affected by a provision made in 2022 for the repayment of restructuring aid. Cash flow from operating activities was positive at SEK 766 million (541), an improvement of SEK 225 million compared with last year. Operating income for the fourth quarter amounted to SEK -266 million (-600).
The implementation of Swedavia's new commercial strategy continued in 2023, with an increased focus on having an affordable, broad and varied commercial offering. The first phase of the new Marketplace was inaugurated at Arlanda during the year, and the range offered at Göteborg Landvetter Airport, Malmö Airport and Luleå Airport was enhanced. The new state-of-the-art security control at Arlanda was also put into operation and has helped to achieve significantly shorter waiting times and more satisfied passengers. During December, the average time taken to pass through the security control was around two minutes.
“As travel increases, we can see how our investments in an enhanced commercial offering and strong operational delivery are helping to achieve improved earnings and more satisfied passengers. We will continue to drive the development of our airports, but ensuring our competitiveness also requires action at national level. It is high time there was a review of the national policy instrument that is aviation tax, which directly reduces competitiveness and inhibits the vital climate transition of aviation. Among other things, the aviation tax limits opportunities to attract the direct intercontinental routes that are needed to ensure Sweden’s connectivity,” says Jonas Abrahamsson.
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 on February 15, 2024, at 4:00 p.m. CET.
The complete financial report is available on Swedavia’s website: About Swedavia - Financial information: www.swedavia.com/about-swedavia/financial-information/
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
Tags:
