Avinor Reports Strong First Quarter with Focus on Sustainable Financial Framework

Avinor's first quarter of 2024 saw a rise in passenger numbers and international traffic, alongside efforts to optimize costs and ensure sustainable financial conditions.

Avinor's Positive Start to 2024Sustained Growth and Financial Optimization

Avinor CEO Abraham Foss emphasized the importance of maintaining a good dialogue with owners to ensure sustainable financial conditions for the Group. Measures to boost revenues and profits remain a priority, with ongoing efforts to optimize operational costs.

Passenger Traffic and Aircraft

MovementsIncrease in Passenger Numbers

In the first quarter of 2024, Avinor's airports saw a total of 10.8 million passengers, marking a 3.5% increase from the same period in 2023. International traffic surged by 11.1%, while domestic traffic saw a slight decline of 0.7%. Despite the rise in passenger numbers, there was a decrease in aircraft movements, leading to an increase in passenger load factors per flight.

Financial Performance

Revenue Growth Driven by International Traffic

Avinor's total operating revenues for Q1 2024 reached NOK 2,507 million, a 2.1% increase from Q1 2023. Adjusted for insurance settlements in Q1 2023, the revenue growth was 7.2%. This growth was driven by higher international traffic and increased air navigation activities.

Within airport operations, revenue growth was 8.0%, outpacing passenger growth of 3.5%. Commercial revenues accounted for 54.2% of total operating revenues, up from 50.8% in Q1 2023.

Winter Operations and Increased CostsImpact of Winter Conditions

The first quarter was characterized by significant winter operations, with several airports experiencing temporary closures due to harsh weather. Operating expenses rose to NOK 2,185 million, a 9.4% increase compared to Q1 2023. This included NOK 48 million for environmental clean-up obligations and NOK 25 million for severance pay provisions. Adjusted for these expenses, the cost increase was 6.0%.

Winter conditions led to increased labor and operational costs, contributing to a 0.5% rise in unit costs per passenger compared to Q1 2023.

Environmental Initiatives

Funds for Zero- and Low-Emission Aviation

In the National Transport Plan (NTP) for 2025-2036, the Government allocated NOK 1 billion to accelerate the transition to zero- and low-emission aviation. These funds will support professional and regulatory facilitation and the development of necessary airport infrastructure, pending approval in the national budget.

The development of infrastructure at Avinor's airports is crucial for positioning Norway as an attractive location for testing new aviation solutions. Avinor has stressed the need for access to financial instruments beyond its current financing model.

"A united industry has called for carrots to enable the transition, not just for sticks in the shape of increased taxes. It is therefore gratifying that the government is showing clear political will to speed up the implementation of the green transition in aviation. Now, we will work hard to facilitate concrete allocations," said Abraham Foss.