FLUGHAFEN ZÜRICH AG Zurich Airport Ltd. posts a profit of CHF 304.2 million for 2023. The significant rise in earnings can be attributed to both aviation and non-aviation business. Passenger volumes recovered much faster than anticipated at the beginning of 2023. The number of passengers who travelled via Zurich Airport rose to 28.9 million in 2023. Based on the profit generated, both an ordinary and an additional dividend can be paid to shareholders.
We can look back on a challenging yet successful financial year. Passenger volumes during the past year were a reflection of many people rediscovering the joy of travel and the high demand for international mobility. Based on the strong summer and autumn business, we were able to increase the passenger forecast for 2023 in August. This had a positive impact on recovery in our commercial centers too.
Overall, 28.9 million passengers flew via Zurich Airport in 2023, an increase of 28% over the previous year. The summer and autumn holiday periods saw over 100,000 air passengers per day on some peak days. Passenger volumes amounted to 92% of the 2019 number.
The number of flight movements came to 247,456 in 2023. This represents an increase of 14% compared to 2022 and 90% of the 2019 figure. A total of 377,998 tonnes of freight were handled at Zurich Airport in 2023. This is a fall of 10% versus the previous year and a decrease of 16% compared to 2019.
Finance resultInvestments of previous years, e.g. in real estate and international business, can now be clearly seen in the figures. Despite traffic figures that are still slightly below the 2019 level, total revenue in the past year is above the pre-pandemic level. We are pleased that thanks to the past successful financial year we can propose a higher dividend for our shareholders too, compared to the previous year.
Total aviation revenue grew at a slightly slower pace than passenger numbers, rising from CHF 491.1 million to CHF 610.1 million (+24%) against the background of the smaller rise in flight movements. Compared with 2019, aviation revenue stood at 92%. Non-aviation revenue climbed by 18% to CHF 626.2 million in the reporting period, around 114% of the revenue achieved in 2019.
Despite cost pressures, operating expenses rose at a slower pace than revenue. Overall, operating expenses increased by 20% year on year to CHF 559.5 million. Adjusted operating expenses were around 7% up on 2019.
Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by CHF 121.2 million year on year to CHF 676.7 million (+22%), setting a new record. Compared with 2019, EBITDA was up by 5%.
The consolidated result for the past year rose by 47% to CHF 304.2 million (previous year: CHF 207.0 million), which is almost as high as the record profit achieved in 2019.
In the reporting year, Zurich Airport Ltd. invested CHF 437.7 million (2022: CHF 235.3 million), of which CHF 226.6 million (2022: CHF 208.3 million) at its Zurich site.
Real estate business and commercial developmentThe Real Estate division of Zurich Airport Ltd. has proved to be a strong and important revenue stream and in 2023 recorded the highest revenues in the company's history. In terms of portfolio management, the focus was on the restructuring of contracts and the strategic development of the hangar area.
Over 50 companies with more than 5,000 employees are now located at the Circle. Both hotel and convention businesses and healthcare services have become very well established there. The occupancy rate for office space is around 95%. A number of events such as the third edition of the Zauberpark festival of music and light, the airport's 75th anniversary celebrations, the Zurich Food Festival and the Quartierfest attracted many visitors. The lane level concept and the retail spaces will undergo further development in the next few months.
The turnover generated in the Airside Center rose in line with the recovery in passenger numbers. In the publicly accessible Airport Shopping area, turnover surpassed pre-pandemic levels.
International business performed wellInternational business saw marked growth in 2023. The Zurich Airport Group was awarded the operating licence for Natal Airport in northeastern Brazil. Construction work at Noida International Airport in India proceeded apace. Declarations of intent for operating routes from Noida Airport were signed with IndiGo Airlines, India's largest airline, and Akasa Air.
Development of airport infrastructureFollowing extensive trials and ongoing adjustments, the phased transition from the old to the new baggage sorting system commenced at the Zurich site in 2023. Construction work for developing the landside passenger zones was resumed after a delay resulting from an objection. Moreover, project planning for replacing the existing Dock A, dock base and tower got under way. Following the 2023 decision by Zurich's Cantonal Parliament in favour of extending runways 28 and 32, Zurich voters likewise approved this safety-related project on 3 March 2024. As a result, Zurich Airport Ltd. can now go ahead and submit its planning application to the federal government.
SustainabilityZurich Airport Ltd. is working hard on decarbonising its infrastructure and reducing its own greenhouse gas emissions to net zero by 2040. A new department was therefore set up in 2023 and will focus on decarbonisation of the buildings at Zurich Airport.
In 2023 a key project achieved a further milestone: exploration of the subglacial channel running under the airport site delivered promising results.If successful, we can use this channel from 2027 as a natural, emission-free energy store for heating and cooling the airport buildings.
Traffic volumes at the Zurich site are predicted to rise this year. Around 30 million passengers are expected, roughly 95% of the number reached in 2019. Overall, Zurich Airport Ltd. expects to generate both higher revenues and a higher consolidated profit in 2024 than in the financial year just ended.
Owing to the positive consolidated result in 2023, the previous payout ratio of around 40% of net profit will be retained and paid out as an ordinary dividend. As in the previous year, an additional dividend will be distributed from capital contribution reserves along with the ordinary dividend. The Board of Directors is proposing to the Annual General Meeting the payment of an ordinary dividend of CHF 4.00 per share as well as an additional dividend of CHF 1.30 per share.
The Integrated Report 2023 of Zurich Airport Ltd. is available online:
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Flughafen Zürich AG published this content on 08 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 March 2024 06:01:02 UTC.
