Avinor AS, the Norwegian airport operator, shared its financial performance for the first half of 2024, noting an increase in revenue largely attributed to passenger development.
The company witnessed a 6.4% rise in revenues, reaching NOK 5,635 million while operating costs rose by 3.5% within the same timeframe. The rise in personnel costs was in line with industry standards, owing to ordinary wage settlements.
CEO Abraham Foss expressed satisfaction with the company's operations, emphasizing ongoing efforts to reduce costs while maintaining safe and stable operations. However, he also pointed out the need for improved revenue streams to support the company's societal mission and fund large investment projects.
Foss highlighted that the operating margin remains too weak to yield the necessary future return on invested capital, underscoring the financial framework challenges faced by the group.
In May, Avinor issued bonds worth EUR 500 million (NOK 5.8 billion) to refinance debt due in 2025 and partially finance its ongoing projects. The company reported a net profit of NOK 51 million for the first half of 2024, a significant improvement from a loss of NOK 146 million during the same period in the previous year.
The second quarter alone saw a profit of NOK 427 million, more than double the profit of NOK 190.7 million in the second quarter of 2023.
The first half of 2024 saw a passenger increase of 4.6% at Avinor's airports, totaling 24.3 million travelers. This growth was driven by a 9.4% rise in international traffic, while domestic traffic saw a more modest increase of 1.8%.
Notably, the second quarter experienced a decline of 2.7% in domestic traffic compared to the same period in 2023, despite a 9.3% increase in international traffic.
Avinor is also focusing on sustainability, with the Norwegian government allocating NOK 1 billion in the National Transport Plan 2025-2036 for the transition to zero and low-emission aviation.
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