European airports back in profit but ACI warns about fundamentals

While European airports today confirmed they returned to the black in 2022 for the first time in three years, pressure on future funding remains of concern amid increased debt and slower traffic growth. At its annual meeting in Barcelona on 27 June, Airports Council International (ACI) Europe disclosed that airports in the region made a net profit of E6.4b last year. That was despite passenger traffic remaining more than a fifth down on pre-Covid levels in Europe. While it marked a welcome return to profit for European airports after €E0b in losses accumulated during the pandemic, ACI Europe director general Olivier Jankovec said the financial situation remains challenging. “For European airports it is about finally turning the corner from Covid, being back in the black, posting a net profit which is very welcome,” Jankovec said during a press conference in Barcelona. ACI says the profit was driven by airports delivering cost efficiencies and by cutting planned investments, noting capital expenditures were down E5.5b. “It’s still difficult because traffic performance is very diverse and we are carrying a significant amount of debt from Covid, and that means, moving forward, a bigger part of the revenue… will have to service that debt,” he adds. ACI Europe estimates that debt and liabilities are still E47b higher than before the pandemic.<br/>