Page 44 - Annual Report 2013
P. 44
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 18th Ordinary General Meeting of the Shareholders of
Athens International Airport S.A. (AIA), during which we shall review the year 2013.
According to article 43a, paragraph 3 of Codified Law (C.L.) 2190/1920, as applicable, we submit
herewith to your General Assembly the Company’s Financial Statements for its 18th 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.
2013 was a year that the global aviation industry proved resilient to the relatively slow global economic
growth and the high fuel costs, supported by improvements in the industry structure and efficiency
gains, including airline consolidations, enhanced airline ancillary revenues, improved aircraft utilization
and further cost management actions. As a result of the above, IATA estimates improved net profit
margins for the airlines worldwide in 2013, at the level of 1,80% (compared to 1,10% in 2012), while ACI
reports a global passenger traffic growth at the level of 4%. However, this overall robust growth in air
travel was driven by solid economic expansion in emerging regions vis-à-vis a far slower expansion of
more mature markets. European airports, according to ACI Europe, saw an overall modest passenger
traffic increase of 2,80%, with EU airports (+1%) underperforming compared to their non-EU counter-
parts (+9,60%), as a result of the continued impact of the Eurozone crisis and the maturity of the EU air
transport market. However, this performance gap has narrowed during the second half of 2013, with EU
airports experiencing recovery signs.
In Greece, the continuing difficult situation of the Greek economy was for one more year a key factor
determining the air traffic evolution at Athens International Airport. With the Greek GDP contracting by
3,90% and the private consumption index by 6%, as per the first estimation for the year 2013 from the Na-
tional Statistical Service, the Greeks’ propensity to travel was severely impacted. On top of the unfavour-
able economic environment in the country, the foreign carriers’ restructuring and network rationalization,
including the exit of Cyprus Airways from the domestic market were additional drivers adversely affecting
the aviation market. On the other side, the favourable development in incoming tourism in Greece and the
gradual resurgence of Athens as a popular tourism destination were positive demand trends counter-
balancing other negative influential factors. The Olympic Air acquisition by Aegean Airlines, which was
finalized late October, was also a major development for the Athens aviation market. Finally, the recovery
trend appearing in Europe during the second half of the year, also emerged in Greece. As a result, the
airport’s traffic for the year 2013 presented a limited reduction of -3,20% in terms of passenger volumes,
outperforming the economic indicators, and -8,40% in terms of number of aircraft movements.
Despite the severely unfavorable macroeconomic environment with traffic loss and contraction in most
business activities, the Airport Company continues to post healthy profits, maintaining profit margins
above the average airport industry and other major Greek companies. AIA’s targeted efforts are direct-
ed towards protecting traffic volumes and revenue streams, by significantly enhancing its incentive poli-
cy towards both aeronautical and non-aeronautical business and by providing savings on the cost side,
without compromising its value-for-money strategy. Thus the Airport Company recorded significant
profits during 2013, i.e. Profit before Tax of €93,9 million and a distribution of €65,1 million as dividend to
its shareholders is proposed.
1. Traffic Highlights
Within a challenging and changing aviation market, AIA’s traffic amounted to 140 thousand flights
and 12,54 million passengers, presenting a decline vs. the corresponding prior-year levels of -8,40%
and -3,20% respectively. The fact that passenger demand achieved a limited reduction despite the
sharp drop of the offered airline services, is worth noting and indicative of a more efficient aircraft
utilisation, as well as of the air travel demand recovery. As a result, airline load factors increased
significantly, reaching the overall impressive figure of 74%, which is a record-breaking figure for the
airport. Domestic passengers, at 4,3 million, presented a decline at the level of 4,60%, whereas
3 of 58 Financial Statements as at 31 December 2013 (Amounts in Euros unless otherwise stated).
Reporting by the BoD to the Annual General Meeting
of the Shareholders
Dear Sirs,
It is a pleasure to welcome you today to the 18th Ordinary General Meeting of the Shareholders of
Athens International Airport S.A. (AIA), during which we shall review the year 2013.
According to article 43a, paragraph 3 of Codified Law (C.L.) 2190/1920, as applicable, we submit
herewith to your General Assembly the Company’s Financial Statements for its 18th 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.
2013 was a year that the global aviation industry proved resilient to the relatively slow global economic
growth and the high fuel costs, supported by improvements in the industry structure and efficiency
gains, including airline consolidations, enhanced airline ancillary revenues, improved aircraft utilization
and further cost management actions. As a result of the above, IATA estimates improved net profit
margins for the airlines worldwide in 2013, at the level of 1,80% (compared to 1,10% in 2012), while ACI
reports a global passenger traffic growth at the level of 4%. However, this overall robust growth in air
travel was driven by solid economic expansion in emerging regions vis-à-vis a far slower expansion of
more mature markets. European airports, according to ACI Europe, saw an overall modest passenger
traffic increase of 2,80%, with EU airports (+1%) underperforming compared to their non-EU counter-
parts (+9,60%), as a result of the continued impact of the Eurozone crisis and the maturity of the EU air
transport market. However, this performance gap has narrowed during the second half of 2013, with EU
airports experiencing recovery signs.
In Greece, the continuing difficult situation of the Greek economy was for one more year a key factor
determining the air traffic evolution at Athens International Airport. With the Greek GDP contracting by
3,90% and the private consumption index by 6%, as per the first estimation for the year 2013 from the Na-
tional Statistical Service, the Greeks’ propensity to travel was severely impacted. On top of the unfavour-
able economic environment in the country, the foreign carriers’ restructuring and network rationalization,
including the exit of Cyprus Airways from the domestic market were additional drivers adversely affecting
the aviation market. On the other side, the favourable development in incoming tourism in Greece and the
gradual resurgence of Athens as a popular tourism destination were positive demand trends counter-
balancing other negative influential factors. The Olympic Air acquisition by Aegean Airlines, which was
finalized late October, was also a major development for the Athens aviation market. Finally, the recovery
trend appearing in Europe during the second half of the year, also emerged in Greece. As a result, the
airport’s traffic for the year 2013 presented a limited reduction of -3,20% in terms of passenger volumes,
outperforming the economic indicators, and -8,40% in terms of number of aircraft movements.
Despite the severely unfavorable macroeconomic environment with traffic loss and contraction in most
business activities, the Airport Company continues to post healthy profits, maintaining profit margins
above the average airport industry and other major Greek companies. AIA’s targeted efforts are direct-
ed towards protecting traffic volumes and revenue streams, by significantly enhancing its incentive poli-
cy towards both aeronautical and non-aeronautical business and by providing savings on the cost side,
without compromising its value-for-money strategy. Thus the Airport Company recorded significant
profits during 2013, i.e. Profit before Tax of €93,9 million and a distribution of €65,1 million as dividend to
its shareholders is proposed.
1. Traffic Highlights
Within a challenging and changing aviation market, AIA’s traffic amounted to 140 thousand flights
and 12,54 million passengers, presenting a decline vs. the corresponding prior-year levels of -8,40%
and -3,20% respectively. The fact that passenger demand achieved a limited reduction despite the
sharp drop of the offered airline services, is worth noting and indicative of a more efficient aircraft
utilisation, as well as of the air travel demand recovery. As a result, airline load factors increased
significantly, reaching the overall impressive figure of 74%, which is a record-breaking figure for the
airport. Domestic passengers, at 4,3 million, presented a decline at the level of 4,60%, whereas
3 of 58 Financial Statements as at 31 December 2013 (Amounts in Euros unless otherwise stated).
