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Financial Statements
REPORTING BY THE BoD TO THE ANNUAL GENERAL MEETING OF THE SHAREHOLDERS
Dear Sirs,
It is a pleasure to welcome you today to the 16th Ordinary General Meeting of the Shareholders of Athens International
Airport S.A., during which we shall review the year 2011.
According to article 43a, paragraph 3 of Codified Law (C.L.) 2190/1920, as this was replaced by article 35 of Presidential
Decree (P.D.) 409/1986, we submit herewith to your General Assembly the Company’s Financial Statements for its 16th
financial period. The present report includes the analysis of these statements as well as any supplementary information
necessary or useful for the statements’ appreciation and approval by the General Assembly, according to the proposal
of the Board of Directors.
In the course of 2011, the aviation industry worldwide witnessed a recovery in passenger traffic (+4.9% according to
ACI), marked however by considerable inter-regional disparity, reflecting the different economic environments in each
regional market. European airports showed resilience in the face of the economic situation of the European countries,
exhibiting a 7.3% passenger traffic increase over 2010; however, April ’10 volcanic ash crisis and December ’10 harsh
weather conditions should be noted with respect to the comparison of years 2010 and 2011. Towards the end of the year,
the economic uncertainty in the region had become apparent as observed from the traffic growth slow-down, as well
as in the fragile European airlines’ financial status. According to IATA, European carriers are expected to record losses
for 2011, while at a global level a slim airline profit margin of 1.2% is estimated. The freight market, despite a promising
start, retracted during the second half of the year, and experienced a small decline globally (at the level of -0.7%), with
Europe presenting a small increase (at the level of +1.9%).
But 2011 was admittedly one of the most challenging years for Athens International Airport (AIA), with the Greek
economy in dire financial situation and the structural changes in the Greek aviation market affecting the supply as well
as the demand side of the air travel equation. On January 26th 2011, the European Commission announced its decision
to block the proposed merger between Olympic and Aegean, based on a quasi-monopoly rationale in the main domestic
routes. The specific decision signified substantial network rationalisation and route development changes for the two
carriers. The country’s economic crisis resulted in low propensity to travel, esp. by Greek residents, extensive airline
capacity reductions, and tarnished publicity of the city and the country. As a result, the airport’s traffic for the year 2011
presented a modest shortfall of -6.3% on passenger throughput and a sharper decline of -9.6% on the number of aircraft
movements.
Despite the extremely unfavourable macroeconomic environment, 2011 profitability remained healthy, driven by the
company’s efforts towards protecting its revenues, reducing its costs and optimizing its investments. The Company
recorded Profit before Tax of €129.5 million and a distribution of €111.0 million as dividend to its shareholders is proposed.
1. Traffic Highlights
During a critical period for the country and amid unfavourable market conditions, Athens International Airport’s traffic for
the year 2011 amounted to 14.45 million passengers and 173.3 thousand movements, experiencing a decline compared
to prior year of 6.3% and 9.6% respectively. The airport’s passenger traffic evolution during the year under review is
mainly attributed to the sharp drop of the domestic sector (-11.9%), whereas international air travellers presented only
limited losses (-3.1%). The winter periods performed worse. The first quarter was compared to exceptionally high 2010
corresponding traffic levels and the fourth quarter strongly experienced the effects of the Greek economic crisis. The
key attributing factors for the negative development were the country’s critical financial and economic situation, the
negative publicity of both the city of Athens and the country, as well the airline capacity reductions, especially apparent
in the winter 2011/2012 flight schedule. Moreover, the decline is also attributed to the falling passenger demand,
especially for the domestic sector. Focusing on the passenger traffic evolution in the major international arenas, all
regions experienced a reduction in passenger volumes, with Eastern Europe presenting the most limited drop (-1%),
followed by Western Europe and the Middle East (-2%); America and Asia experienced traffic decline at the level of 4%
and 5% respectively, while the African market suffered a dramatic drop of 41%, mostly attributed to the events of the
Arabic Spring.
Financial Statements as at 31 December 2011 (Amounts in Euros unless otherwise stated) Page 3 of 50
REPORTING BY THE BoD TO THE ANNUAL GENERAL MEETING OF THE SHAREHOLDERS
Dear Sirs,
It is a pleasure to welcome you today to the 16th Ordinary General Meeting of the Shareholders of Athens International
Airport S.A., during which we shall review the year 2011.
According to article 43a, paragraph 3 of Codified Law (C.L.) 2190/1920, as this was replaced by article 35 of Presidential
Decree (P.D.) 409/1986, we submit herewith to your General Assembly the Company’s Financial Statements for its 16th
financial period. The present report includes the analysis of these statements as well as any supplementary information
necessary or useful for the statements’ appreciation and approval by the General Assembly, according to the proposal
of the Board of Directors.
In the course of 2011, the aviation industry worldwide witnessed a recovery in passenger traffic (+4.9% according to
ACI), marked however by considerable inter-regional disparity, reflecting the different economic environments in each
regional market. European airports showed resilience in the face of the economic situation of the European countries,
exhibiting a 7.3% passenger traffic increase over 2010; however, April ’10 volcanic ash crisis and December ’10 harsh
weather conditions should be noted with respect to the comparison of years 2010 and 2011. Towards the end of the year,
the economic uncertainty in the region had become apparent as observed from the traffic growth slow-down, as well
as in the fragile European airlines’ financial status. According to IATA, European carriers are expected to record losses
for 2011, while at a global level a slim airline profit margin of 1.2% is estimated. The freight market, despite a promising
start, retracted during the second half of the year, and experienced a small decline globally (at the level of -0.7%), with
Europe presenting a small increase (at the level of +1.9%).
But 2011 was admittedly one of the most challenging years for Athens International Airport (AIA), with the Greek
economy in dire financial situation and the structural changes in the Greek aviation market affecting the supply as well
as the demand side of the air travel equation. On January 26th 2011, the European Commission announced its decision
to block the proposed merger between Olympic and Aegean, based on a quasi-monopoly rationale in the main domestic
routes. The specific decision signified substantial network rationalisation and route development changes for the two
carriers. The country’s economic crisis resulted in low propensity to travel, esp. by Greek residents, extensive airline
capacity reductions, and tarnished publicity of the city and the country. As a result, the airport’s traffic for the year 2011
presented a modest shortfall of -6.3% on passenger throughput and a sharper decline of -9.6% on the number of aircraft
movements.
Despite the extremely unfavourable macroeconomic environment, 2011 profitability remained healthy, driven by the
company’s efforts towards protecting its revenues, reducing its costs and optimizing its investments. The Company
recorded Profit before Tax of €129.5 million and a distribution of €111.0 million as dividend to its shareholders is proposed.
1. Traffic Highlights
During a critical period for the country and amid unfavourable market conditions, Athens International Airport’s traffic for
the year 2011 amounted to 14.45 million passengers and 173.3 thousand movements, experiencing a decline compared
to prior year of 6.3% and 9.6% respectively. The airport’s passenger traffic evolution during the year under review is
mainly attributed to the sharp drop of the domestic sector (-11.9%), whereas international air travellers presented only
limited losses (-3.1%). The winter periods performed worse. The first quarter was compared to exceptionally high 2010
corresponding traffic levels and the fourth quarter strongly experienced the effects of the Greek economic crisis. The
key attributing factors for the negative development were the country’s critical financial and economic situation, the
negative publicity of both the city of Athens and the country, as well the airline capacity reductions, especially apparent
in the winter 2011/2012 flight schedule. Moreover, the decline is also attributed to the falling passenger demand,
especially for the domestic sector. Focusing on the passenger traffic evolution in the major international arenas, all
regions experienced a reduction in passenger volumes, with Eastern Europe presenting the most limited drop (-1%),
followed by Western Europe and the Middle East (-2%); America and Asia experienced traffic decline at the level of 4%
and 5% respectively, while the African market suffered a dramatic drop of 41%, mostly attributed to the events of the
Arabic Spring.
Financial Statements as at 31 December 2011 (Amounts in Euros unless otherwise stated) Page 3 of 50
