- 22.5 million passengers (+2.2%) at Vienna Airport in 2014
- Forecast for 2015: Passenger development of 0% to +2% depending on development of trouble spots
- Financial guidance for 2015: Increased revenue, EBITDA and net profit expected despite cautious passenger forecasts
- Tax reform in 2015: Abolish the ticket tax which impedes growth and thus create new jobs
New record number of 22.5 million passengers: The year 2014 developed well for Vienna Airport in spite of crisis and strike-related challenges. Three new long-haul routes, six new airlines and expanded frequencies and destinations drove passenger growth up by 2.2% to 22.5 million passengers. Following the expected first quarter 2015 decline in the number of passengers Flughafen Wien AG expects total passenger volume to develop in the range of 0% and +2% in 2015 against the backdrop of a persistently difficult market environment, accompanied by an increase in its revenue, EBITDA and net profit.
Successful traffic year 2014
Attracting new airline customers and flight offerings for the Vienna hub is our clear strategic objective. Together with our partners, we generated good results in 2014, especially with respect to long-haul routes and new destinations. A great deal was also achieved in improving service quality. We already implemented more than 120 individual measures, and the newly designed Pier West represents a new benchmark at Vienna Airport, explains Julian Jäger, Member of the Management Board of Flughafen Wien AG. However, the crisis situations in Russia and the Ukraine as well as in the Middle East, along with strike-related flight cancellations and the generally restrained economic climate had perceptible effects on Vienna Airport. For these reasons we anticipate a drop in passenger volume in the first quarter of 2015 but a slightly positive passenger development between 0% and +2% for the entire year 2015, he adds.
Flughafen Wien calls for abolishment of ticket tax
Flughafen Wien AG also felt the consequences of global political and aviation-specific developments. Nevertheless, the year 2014 was very successful for the airport. We will achieve the designated financial targets for 2014 by consistently pursuing our strategy to reduce costs and enhance productivity. In spite of cautious passenger forecasts, we anticipate clearly positive results reflected in a consolidated net profit of at least 85 million and an EBITDA exceeding 250 million in 2015. Net debt should be further reduced to fall below the level of 500 million, states Günther Ofner, Member of the Management Board of Flughafen Wien AG. The transformation of the airport into an Airport City is continuing. Now the flight hub is directly accessible via long-distance trains and the new hotel project has entered the planning phase. In particular, the ticket tax which serves as an impediment to growth should be abolished within the context of the upcoming tax reform. This would quickly create about 3,000 additional jobs, without the government losing any tax revenues on balance, Ofner concludes.
2014: About 22.5 million passengers at Vienna Airport (+2.2%)
2014 was once again a successful traffic year for Vienna Airport following the slight decline in total passenger volume in 2013. Vienna Airport reported 22,483,158 passengers in the year 2014, a rise of 2.2% from the previous year. In particular, passenger development was positively impacted by the new long-haul routes, new flight connections and expanded frequencies of the airlines. In contrast, the crisis situations in Russia, the Ukraine and the Middle East as well as the unfavorable exchange rate fluctuations and strike-related flight cancellations in Europe negatively affected airport operations. In terms of traffic development, local flight traffic was the growth driver, rising by 4.6%, whereas the number of transfer passengers fell by 3.9%. The number of flight movements (starts and landings) stagnated slightly at minus 0.2%, whereas capacity utilization of the aircraft (seat load factor) was up by 0.2 percentage points to 75.0%. Cargo volume (air cargo and trucking) developed very well, rising by 8.3% to 277,532 tonnes.
Strong increase in air traffic to North America, growth to Western European destinations
Passenger traffic to North America showed a strong growth of 27.8% in a year-on-year comparison, which is mainly due to Austrian Airlines addition of Newark as a flight destination and the increase in the number of its flights to Chicago. Traffic to Western Europe also developed well, with the total number of passengers up 3.0%. Vienna Airport also showed an increase of 3.1% in passenger traffic to the Middle East. However, the crisis situation in Russia and the Ukraine negatively impacted traffic to Eastern Europe, which was down by 6.5%.
Top destinations in 2014: Western Europe - Frankfurt, Eastern Europe - Moscow, Long-haul routes Bangkok
The highest number of passengers flying from Vienna Airport to Western European destinations was registered by Frankfurt with 680,895 passengers, followed by Zurich with 476,290 and London with 461,630. Moscow was the most popular destination in Eastern Europe, attracting 329,513 passengers, ahead of Bucharest with 201,929 and Sofia with 162,265. Dubai was the top destination in the Middle East with 232,128 passengers, followed by Tel Aviv with 157,155 and Doha with 48,069 travelers. Bangkok was the most popular long-haul route, registering 115,726 passengers from Vienna, followed by New York with 86,284 and Tokyo with 73,715.
Austrian Airlines Group accounts for the largest share of passengers
A ranking of the airlines by the number of passengers flying to/from Vienna Airport shows the Austrian Airlines Group in the number one spot, with 47.7% of passenger volume, followed by NIKI with 11.0%, airberlin with 6.2% and Lufthansa with a 4.8% share. The top ten airlines at Vienna Airport also include germanwings with 3.2% of total passenger volume, Turkish Airlines with a 2.2% share, British Airways with 1.8%, SWISS with 1.7%, Emirates with 1.6% and KLM with 1.4% of all passengers. In this ranking, Vueling, TAP Portugal and Alitalia were the airlines recording the strongest growth in the number of passengers carried. The average seat occupancy rose from 74.8% in 2013 to 75.0% in 2014. Vienna Airport was regularly served by 70 airlines in 2014, travelling to a total of 172 destinations in 71 countries.
Strong growth in air cargo: cargo volume up 8.3%
The cargo business at Vienna Airport developed well in 2014. Total cargo volume (incl. trucking) climbed by 8.3% to 277,532 tonnes. Air cargo increased by 10.6% to 197,761 tonnes, whereas trucking was up 3.1% to 79,771 tonnes.
Predicted passenger development, financial guidance for 2015
Following the expected decline in the number of passengers in the first quarter of 2015, Flughafen Wien AG anticipates a slightly positive passenger development in the range of 0% to +2% for 2015 as a whole. The development of flight movements will also rise marginally between 0% and +1% range. From todays perspective, impetus to growth will be provided by the launch of flight services to Mauritius (MU) and frequency increases to Newark (US) and Athens (GR) by Austrian Airlines, new destinations added by NIKI, namely Catania (IT), Alicante (ES), Athens (GR), Paphos (CY) as well as an increase in the number of flights it operates to Zurich (CH), as well as new routes and expanded flight service on the part of EasyJet, Vueling, TUIFly, Estonian Air, Aegean, SunExpress, Pegasus Airlines, Montenegro Airlines and Air Moldova.
Against this backdrop, the Management Board of Flughafen Wien is fundamentally optimistic with respect to its business outlook for the year 2015. It aims to generate increased revenue of more than 645 million, and raise EBITDA to more than 250 million. From todays point of view, the consolidated net profit after tax should reach a level of at least 85 million. Net debt should be further reduced to fall below 500 million. Investments are expected to amount to about 95 million in 2015.
For additional information contact:
Flughafen Wien AG Press Office
Peter Kleemann (+43-1-)7007-23000, firstname.lastname@example.org
Clemens Schleinzer (+43-1-) 7007-22399, email@example.com
Stefanie Tomanek (+43-1-) 7007-26939, firstname.lastname@example.org
Traffic development in 2014
|2014:||in % vs. 2013|
|Passengers (total)||22,483,158||+ 2.2%|
|Local passengers||15,873,386||+ 4.6%|
|Transfer passengers||6,531,198||- 3.9%|
|Flight movements||230,781||- 0.2%|
|MTOW in tonnes||8,179,391||+ 3.4%|
|Air cargo and trucking in tonnes||277,532||+ 8.3%|
|Air cargo in tonnes||197,761||+ 10.6%|
|Trucking in tonnes||79,771||+ 3.1%|
|Regions||Passengers*||in % vs. 2013|
|Eastern Europe||2,025,666||- 6.5%|
|Western Europe||7,761,325||+ 3.0%|
|Far East||408,707||+ 12.5%|
|Middle East||538,923||+ 3.1%|
|North America||298,630||+ 27.8%|
|South America||12,024||+ 9.5%|
|Top destinations per region||Passengers*||in % vs. 2013|
|Eastern Europe||Moscow||329,513||- 10.9%|
|Western Europe||Frankfurt||680,895||+ 3.3%|
|Middle East||Dubai||232,128||+ 4.2%|
Traffic forecast for 2015
|Passenger development||0% to + 2%|
|Flight movements||0% to + 1%|
Financial guidance for 2015
|Revenue||> 645 million|
|EBITDA||> 250 million|
|Consolidated net profit||≥ 85 million|
|Net debt||≤ 500 million|
|CAPEX||~ 95 million|