Vienna airport operator profits steady despite tough 2013

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Profits at Vienna Airport operator Flughafen Wien improved slightly in 2013 despite falling aircraft movements at the airport during the year.

Group revenue was 2% higher at €622 million ($854 million) in 2013, while profits were stable at an an operating level as the group recorded an EBIT up 4% to €112 million. Group net profit increased 1% to €73.3 million.

The small improvement in profit came despite passenger numbers slipping fractionally to just under 22 million, reflecting capacity cuts and disruption from heavy snowfall and strikes in Germany. Flight movements fell 5.5% in 2013.

Revenues in the group's airport segment increased 5% to €331 million, but handling revenues were down 3% to €152 million. "The 5.5% decline in flight movements during 2013 naturally had a strong effect on the handling segment, and the generation of positive earnings will also represent a particular challenge in the future," it notes. The company though improved its retail and other revenues segments

For the the year ahead Flughafen Wien expects passenger numbers to increase 1-3% and flight movements to be roughly flat. Against this backdrop it expects revenues to top €630 million and a net profit €75 million in 2014.

“We are optimistic over the development of business in 2014: the summer flight plan already includes a number of new destinations and additional connections. New airlines such as Air China, Air Algerie and Jet have already announced their plans for the start of flights to Vienna," says Flughafen Wien management board member Julian Jager. "Our forecasts for 2014 call for an increase in the number of passengers.