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Avinor Reaches New Heights in 2024 with a 4.8% Improve in Passenger Visitors, Strengthening its Monetary Place and Progress Prospects
Thursday, February 20, 2025
Avinor has confronted appreciable monetary challenges for the reason that onset of the pandemic, with income losses ensuing from the strict measures put in place to curb the unfold of the virus. As well as, the visitors charges construction has not been aligned with the “Single-till” mannequin, which straight impacted the corporate’s skill to fulfill its price construction consistent with societal and sectoral coverage targets. The imbalance between income ranges and a comparatively fastened price base has led to continued monetary pressure. Furthermore, the corporate’s revenues had been additional impacted by sharp reductions in duty-free quotas in 2022 and 2023, exacerbating the monetary difficulties.
Passenger Visitors Surge Fuels Income Progress in 2024
Regardless of these obstacles, Avinor skilled a robust rebound in passenger visitors in 2024. A complete of 51.4 million passengers traveled via its airports, a 4.8 % improve in comparison with 2023. The fourth quarter alone noticed 12.5 million passengers, reflecting a 5.7 % improve from the identical interval in 2023. Worldwide journey was the first driver of this progress, with worldwide passengers accounting for 43 % of complete visitors in 2024, up from 41 % the earlier yr. Worldwide visitors noticed an 8.9 % improve, whereas home visitors grew by a modest 1.9 %. The fourth quarter particularly noticed worldwide visitors leap by 9.8 %, whereas home visitors grew by 3.2 %.
Though passenger numbers grew, there was a slight decline in flight actions. Because of this, the variety of passengers per flight elevated, with the corporate reaching a record-high load issue of 73.1 % in 2024. This efficiency was pushed by worldwide flights, which had a load issue of 76.9 %, whereas home flights noticed a load issue of 70.5 %.
Trying forward, Avinor is optimistic about future capability progress, with airways forecasting optimistic developments over the following three quarters. For the primary quarter of 2025, a 4.6 % improve in passenger numbers is anticipated, adopted by 2.4 % progress within the second quarter and a couple of.9 % within the third quarter. This means a gradual rise in passenger visitors throughout subsequent summer time’s journey season.
Stable Monetary Efficiency in 2024
Avinor’s monetary efficiency improved in 2024, with its working margin exhibiting optimistic progress. Complete working income reached NOK 12,110 million, with adjusted income progress of seven.5 % within the fourth quarter alone and 6.8 % for the whole yr. This progress was largely pushed by the rise in passenger volumes, in addition to a slight improve in income per passenger.
Working prices additionally noticed a rise of two.5 % for the yr in comparison with 2023, however the fourth quarter noticed a lower of 1.4 %. This discount in prices was primarily attributable to wage settlements, highlighting Avinor’s skill to handle its bills effectively whereas navigating the monetary restoration course of.
“Avinor continuously works to optimize costs in ongoing operations. At the same time, a high proportion of the company’s cost base is relatively fixed and necessary to maintain safe and stable operations as assumed in the societal mission and to perform government-mandated tasks”, says Kirsebom.
Ongoing Discussions with the Ministry of Transport on Flexibility and Societal Obligations
Avinor is in steady discussions with the Ministry of Transport to comply with up on the suggestions from the unbiased overview carried out by KPMG in 2024. These discussions give attention to a number of key areas, together with Avinor’s skill to optimize operations and money movement, the financing of duties carried out for different sectors, and the corporate’s capital construction and dividend coverage.
A big space of focus is Avinor’s massive undertaking portfolio, which incorporates the event of recent airports in Bodø and Mo i Rana, in addition to upgrades to Tromsø, Evenes, and Andøya airports. One other main initiative is the technological shift in air visitors management techniques, encompassing each en-route and tower providers. The evolving safety coverage panorama and the brand new necessities for nationwide protection, significantly in relation to the Norwegian Armed Forces, might end in modifications which will improve prices for improvement tasks involving the navy, representing a possible danger for these tasks.
