Swedavia: Record passenger volume, high profit and increased pace of capital spending

Swedavia: Record passenger volume, high profit and increased pace of capital spending

Swedavia - Feb 14, 2017 11:00 GMTSwedavia set a new passenger volume record and showed a high profit in 2016.

Swedavia set a new passenger volume record in 2016, up 5.2 per cent. New passenger records were set at seven of the Group’s airports. Growth was mostly in international travel. Net revenue increased to SEK 5,546 M (5,416) and profit for the year was high, SEK 717 M (1,410).

Passenger volume at Swedavia’s airports was up 5.2 per cent in 2016. The number of international passengers totalled 25.7 million, while the total number of domestic passengers totalled 13.7 million. Some of the growth in 2016 was a result of significant investments by airlines, with new international routes established at a number of Swedavia’s airports.

“The sharp passenger growth continues, and we are now entering a phase of substantial capital spending to increase capacity at our airports. This involves more than a doubling in our pace of investment. Meanwhile, we continue our major efforts for sustainability and environmental improvements. In December, three of our airports were supplied with 450 tonnes of biofuel to carbon-offset all of Swedavia’s air travel for official business in 2016. We are now launching a biofuel tender to offset air travel for official business in 2017 as well,” says Jonas Abrahamsson, president and CEO of Swedavia.

The higher passenger volume in 2016 boosted net revenue to SEK 5,546 M. Profit for the year was positively affected by non-recurring income from the sale of properties, including Göteborg City (Säve) Airport, totalling SEK 241 M. Operating profit including capital gains was SEK 966 M (1,755), and operating profit excluding capital gains was SEK 725 M (837). Operating profit for 2015 was affected by capital gains on sales totalling SEK 918 M. Profit after tax in 2016 was SEK 717 M.Net profit for the fourth quarter was SEK 47 M.

The Board of Directors proposes that a dividend of SEK 143 M (232) be distributed, in accordance with the Company’s dividend policy.