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ECONOMICS & FINANCE NEWS PASSENGER FACILITATION TRAFFIC

TAV Airports sees revenues soar to €1.3 billion in 2023

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TAV Airports’ full-year financial and operational results for 2023 show that it handled 96 million passengers (+22%) across its gateways last year and saw its revenues soar by 25% to €1.3 billion.

Forecasting 100 to 110 million passengers in 2024, the company revised its 2022-2025 compound growth expectations upwards.

TAV Airports CEO, Serkan Kaptan, stated: “In 2023 we served 96 million guests which was 22% above 2022 and 7% above 2019. Aided by a relatively warmer winter season, we continued to witness healthy traffic growth in the fourth quarter of 2023 and in 2024 to date.

“When we breakdown the growth into its components, we can see that international passenger traffic was even stronger with 13% growth versus 2019. Moreover, except for Russia and Ukraine, we have witnessed very high growth in most major source markets.

“Germany, which is our top source market is 24% above 2019. UK traffic is 58% Poland is 78% and UAE is 65% above 2019.

“Outbound traffic from our non-Turkish airports to Turkey is also 75% above 2019. With the lift of the Russian travel ban in May 2023, we started to see a gradually increasing recovery in Georgia.

“We are also very happy to welcome 1.1 million Kazakh travellers into our Turkish and Georgian airports with a growth of 116% versus 2019.”

He continues: “The historical ties between Turkey and Kazakhstan are very deep and we are working to make them even stronger through our investment in Almaty Airport.

“With the opening of the new terminal expected in June 2024, travellers will be able to enjoy a world class assortment of services and facilities. Our investment in Almaty will bolster tourism, business and cargo traffic while supporting the overall development of the country.”

Talking about investment in Turkey, Kaptan enthuses: “We have completed 70% of our investment programme in Antalya Airport and we are planning to open the new terminal in the first quarter of 2025.

“With the new terminal, the capacity of the airport will increase from 35 million to 65 million passengers per year and we will nearly triple the retail areas in the airport. Furthermore, with a wider and newer retail offering we will enhance passenger experience significantly and improve commercial performance.

“Our airside investments in Ankara Esenboğa Airport are also 34% complete and we expect to finalise these investments by end of 2025.”

On the bigger picture, he notes: “We embarked upon a massive investment programme in 2021 to build the future of TAV Airports and we will complete €1.2 billion of committed infrastructure development in our new projects by 2025.

“The total sum of our investment program between 2021-2025 including the acquisition price and upfront rents paid for Almaty, Antalya and Ankara and other investments we are making elsewhere in our assets adds up to around €2.5 billion.

“This massive programme shows our commitment to and confidence in the future of aviation in our core geography and especially in Turkey. Growth of the global middle class, urbanisation and e-commerce are trends that will continue to support aviation for the foreseeable future.

“We finished the year with very strong operational results. Revenue grew 25% versus 2022 and reached €1.3 billion. EBITDA grew 19% and reached €385 million. Net income for the year was €249 million with a growth of 104% over 2022.”

Sustainability

Kaptan reveals: “As a part of our decarbonisation efforts we have applied for regulatory approval to build solar power generation capacity for Ankara, Bodrum and Izmir, totaling a capacity of 18.4 MW.

“Since 2021, we have managed to build a very strong portfolio of assets to carry TAV Airports to the future. As we approach the end of our heavy investment programme by 2025, the fruits of our efforts are becoming more and more visible.

“I would like to thank our employees, shareholders and business partners for their invaluable contributions to building our global brand and carrying it into the future very successfully.”

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