Zurich airport on the up and up
Zurich airport has reported a net profit of SFr87.5 million ($71.8 million) for 2006, up 48 per cent on the previous year.
Switzerland’s biggest airport said the rise was thanks to unexpectedly strong growth in traffic, with the number of people flying from Zurich rising by nearly eight per cent to more than 19 million.
Total income rose by five per cent to SFr737.1 million, 60.3 per cent of which came from aviation business, airport operators Unique said in a statement on Thursday.
Income in the aviation segment rose by 6.1 per cent to SFr444.2 million, reflecting the growth in the number of passengers, while non-aviation income climbed by 3.4 per cent to SFr293 million.
Earnings before interest, taxes, depreciation and amortisation (Ebita) increased by SFr14.3 million to SFr378.3 million, up 3.9 per cent.
In view of a positive market outlook, the company expects traffic growth in 2007 to be similar to the level in 2006, with passenger volumes rising to around 20.7 million.
A total of 19,237,216 people took flights from Zurich airport last year, 31.9 per cent of whom were transfer passengers, which is low by European standards. The number of local passengers increased by 3.8 per cent.
At the shareholders annual general meeting next month, the board of directors will be proposing a dividend of SFr3 per share, up from SFr1 per share last year.
Airborne Swiss
The airport has benefited from the rise in fortunes of Swiss International Air Lines, which was born from the remains of bankrupt Swissair and the regional carrier Crossair and in turn taken over by Germany’s Lufthansa in 2005.
Unique chief executive Josef Felder predicted that the alliance between Lufthansa and Swiss would safeguard Zurich airport’s standing as an international hub. “The hub status of Zurich airport will become even stronger,” he said.
Felder predicts passenger numbers will rise further this year to 20.7 million – an increase of eight per cent.
But Switzerland’s main hub remains embroiled in a row over noise pollution. In February Zurich’s cantonal parliament rejected a flat ceiling of 250,000 flight movements a year but adopted measures that are likely to limit traffic to 320,000. The final decision rests with a public vote likely to be held in November.
Noise pollution has been a long-running political issue ever since Germany banned night and weekend flights to and from Zurich airport over parts of its southern territory in October 2003.
Since then many more flights have been redirected over the city of Zurich and its affluent suburbs.
Discussions are continuing between Switzerland and Germany to find a solution to the problem which has poisoned bilateral relations.
easyJet returns
In a separate development, British low-cost carrier easyJet announced that it would resume a service between Luton and Zurich on September 18 this year.
The airline will offer two daily flights on week days and a single flight to and from Zurich on weekends.
easyJet pulled out of Zurich airport two years ago, citing high costs among other reasons. In the intervening period the airline concentrated on Basel and Geneva airports.
swissinfo with agencies
Zurich airport is Switzerland’s main flight hub ahead of Geneva and Basel. It has a current capacity of 350,000 flight movements per year.
A recent government report predicts air passenger numbers will double by 2030, leading to calls for Zurich airport to adapt to meet the expected demand. Annual take-offs and landings would have to increase from just over 260,000 flight movements to 450,000.
Swiss Business Federation projects that restricting movements to 250,000 would cost the economy up to SFr7.5 billion in 2020 if these growth predictions prove correct.
2006 annual results:
Net profit: SFr87.5 million (+48%).
Income: SFr737.1 million (+5%).
Ebita: SFr378.3 million (3.9%).
Zurich airport handled 260,786 flights last year, down 2.5% on 2005.
In total 19,237,216 passengers used the airport in 2006 (+7.6%).
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