Athens Airport: High Expectations for 2024 Following Record Year
Athens International Airport (AIA) executives referred to record data when recently presenting its financial results for 2023.
During a recent presentation to journalists, the first after the company entered the Athens Stock Exchange, AIA CEO Yiannis Paraschis revealed data showing the course of the airport during 2023, which saw passenger traffic reaching 28.2 million – a historic high – and revenues reaching 603.7 million euros, up from 476,8 in 2022.
Passenger traffic
Regarding traffic developments, passengers last year surpassed 2019 (pre-Covid) levels by 10.2 percent and the levels of 2022 by 24 percent.
Domestic and international passengers at AIA last year surpassed 2022 levels by 18.9 percent and 26.4 percent, while also exceeding 2019 levels by 13.3 percent and 8.8 percent, respectively.
AIA served nearly 38 percent of all passenger traffic in Greece in 2023.
Paraschis said 85 percent of passengers in 2023 traveled for reasons of leisure and the remainder 15 percent for business.
“Post-pandemic, leisure travel has proven to be the most resilient part of traffic compared to business travel,” he said.
Moreover, in 2023, Athens was directly connected with scheduled services with 156 destinations-cities (vs 143 in 2022 and 157 in 2019), in 57 countries (vs 50 in 2022 and 55 in 2019), operated by 66 carriers (vs 66 in 2022 and 66 in 2019).
Aircraft movements amounted to 241,605, i.e. 13.2 percent above the 2022 levels and 7.1 percent above the respective 2019 levels.
Financial results
Referring to the airport’s financial results, Paraschis said AIA’s total revenue last year increased by 126.8 million euros, or 26.6 percent to 603.7 million, with revenues of both air and non-air activities demonstrating substantial improvement mainly driven by the 24 percent increase in passenger traffic and better commercial dynamics.
“This return to development has made AIA an attractive airport, a fact also reflected in the impressive participation recorded during AIA’s initial public offering at the Athens Stock Exchange,” Paraschis said while presenting the results.
Revenues from air activities reached 448.9 million euros, marking an increase of 22.2 percent in 2023 against the previous year. The main contributor of growth derived from the performance of revenues from aeronautical charges and ADF (Airport Development Fund) income.
Moreover, revenues from non-air activities stood at 134.8 million euros, higher by 23.2 percent compared to 2022 driven by retail concession activities and car parking services.
Adjusted EBITDA reached 367.2 million euros, marking an increase of 16.7 percent compared to 2022 while adjusted EBITDA margin reached 62.9 percent.
According to Paraschis, in terms of revenues from air activities, AIA for 2024 projects stable yield per passenger from aeronautical charges and ADF.
“We intend to modify aeronautical charges to 3 euros per departing passenger – from 12 euros today – in accordance with Law 4465/2017,” he said, adding that total aeronautical charges and ADF per passenger will remain at par with today’s level.
‘Best of Greece’ strategy in retail to continue
Referring to non-air activities, Paraschis said that apart from significant passenger growth, the main drivers of last year’s performance were a favourable passenger spending profile and the improved commercial concept portfolio following AIA’s “Best of Greece” strategy roll-out, whereby Greece-focused concepts and quality brands were introduced to AIA’s terminals.
“On the non-air activities segment, we shall continue (in 2024) to implement the successful ‘Best of Greece’ strategy in retail concession activities,” he said.
Overall, AIA in 2023 saw the introduction of eight new retail, food & beverage and services concepts further contributing to the extensive commercial offering transformation of the past few years.
Jan-Feb passenger traffic 14.4% rise push expectations up
Meanwhile, AIA has high expectations for 2024 as passenger traffic levels of the first two months of the year indicate that the record levels of 2023 will be surpassed.
Referring the airport’s performance in January and February, Paraschis said passenger traffic reached 3,209,546 passengers from 2,805,537 passengers in 2023, recording an increase of 14.4 percent.
According to the data, the increase, especially in the second month of the year, came mainly from foreign passengers, up by 17 percent, compared to the nine percent increase in domestic passengers.
The data presented by AIA shows that 2024 has started strongly and the airport is expecting even higher levels of passenger traffic, considering the recovery of traffic of its non-traditional markets, such as China.
“We expect that demand for travel to Greece will continue and we project a modest increase in passenger traffic for 2024, compared to the one experienced in 2023,” Paraschis said.
He added that as part of the airport’s airline marketing and traffic development actions, AIA will continue to support airlines currently operating in Athens.
“Our route development strategy will further focus on markets with high potential and markets with large share of high-spending passengers,” he said.
Master plan for airport expansion is progressing
During the presentation, journalists were given an update on AIA’s facilities’ expansion, which will be carried out to respond to further increase in passenger traffic.
According to Paraschis, the first phase of expansion projects will increase the airport’s facilities’ capacity to 33 million passengers per year, up from the current capacity of 26 million by adding approximately 81,000 m2 to its facilities.
Based on the approved master plan, AIA will expand the main and satellite terminal buildings, which will include an increase of commercial spaces by over 60 percent. Also, additional aircraft parking positions will be constructed as well as a new multi-storey car parking facility.
Paraschis informed that the selection process for a contractor has already begun with the aim for the first phase of the expansion to be completed by the end of 2028.
Situated about 20km east of Athens, Athens International Airport officially opened in March 2001, replacing Greece’s then main airport facility at Hellenikon, south of Athens.