Zurich Airport reaches record half-year profit with passenger growth

Investing.com — Zurich Airport Group (SIX:FHZN) announced its best half-year result in history on Tuesday. The company's income, EBITDA and consolidated profit improved compared to the same period last year. Consolidated profit increased by 6% from CHF 151,8 million to CHF 161,3 million.

Revenue from flight operating fees in the first half of the year increased by 4% or CHF 11.7 million to CHF 281.0 million. Aviation fees and other aviation revenues increased by CHF 2 million to CHF 46.2 million.

Total aviation revenue increased by 4% from CHF 313.5 million to CHF 327.3 million. This increase was partly due to strong growth in the number of local passengers paying higher fares than transfer passengers.

Commercial and parking revenues were CHF 132.2 million, down 1% due to the reduction of retail space on the land side during construction.

Real estate revenues were almost unchanged at CHF 98.4 million, with increased rental and rental income offset by a decrease in energy and utility cost allocations.

Revenue from services amounted to CHF 25.2 million, similar to the prior year period. Income from the international airport business decreased from CHF 60.6 million to CHF 57.6 million, mainly due to a decrease in construction project income.

Excluding this income table-neutral item, international business income increased by 14% or CHF 7.1 million.

Total non-aviation revenue decreased by 1% to CHF 313.4 million. Excluding construction project revenues, non-aviation income increased CHF 5.9 million or 2%.

Operating expenses decreased by 1% to CHF 281.8 million. Adjusted operating expenses excluding construction projects increased 3% compared to the first half of 2024.

Staff expenses increased by 11% to CHF 131.6 million, reflecting inflation, volume-related adjustments and the takeover of services for passengers with reduced mobility from 1 January 2025.

Other operating expenses decreased to offset this increase. Police and security costs increased by 3% to CHF 65.6 million, while energy and waste costs decreased by 13% to CHF 18.5 million due to lower electricity supply costs.

EBITDA increased by CHF 12 million to CHF 358.8 million. This represents an increase of 3% and the EBITDA margin was 56%. Depreciation and amortization shares increased by 4% to CHF 149.7 million.

The financing result was CHF 1.5 million, recovering CHF 1.5 million due to higher interest income to minus CHF 7.1 million.

Operating cash flow amounted to CHF 305.8 million. Investments in real estate, facilities and equipment, ongoing projects and airport operator projects amounted to a total of CHF 422.9 million. Thus, the free cash flow for the first half of the year was minus CHF 1.5 million, compared with CHF 1.5 million in the previous year, minus CHF 117.1 million.

The Zurich Airport Group expects passenger volume to be about 32 million for 2025. This represents an increase of 2.5%. Aviation revenue is projected to move in parallel with traffic growth.

Non-aviation income is expected to be slightly higher overall. Parking will benefit from higher traffic. However, commercial income is expected to decline due to temporary retail closures due to construction.

Real estate rental revenues are projected to increase slightly. But lower energy and utility cost allocations will reduce revenue. International business income is expected to increase.

Operating costs are expected to rise due to inflation-linked adjustments, volume growth and employer-related measures.

Staff costs will increase more than average due to the takeover of mobility services. This increase will be offset by a decrease in other operating expenses.

EBITDA is expected to be slightly above the 2024 level, while consolidated profit is projected to be similar to the previous year.

Investments are expected to be around CHF 500 million in the Zurich facility, including the acquisition of Radisson Blu, and CHF 250 million in subsidiaries abroad, mainly for the completion of the construction of Noida Airport.

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