Page 50 - Annual_Report_2016
P. 50
Financial Statements aia.gr
Reporting by the BoD to the Annual General
Meeting of the Shareholders
Dear Sirs,
It is a pleasure to welcome you today to the 21st Annual Ordinary General Meeting of the Shareholders of
Athens International Airport S.A. (AIA), during which we shall review the year 2016.
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 21st 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.
During 2016 the global air transport industry continued to show a solid performance despite the economic
and political instability in many parts of the world. Year 2016 can be best appreciated if seen in two halves,
the first being marked by subdued economic activity and terrorist attacks, while the second witnessing
traffic picking up, most probably as a result of the travelling public accommodating to the uncertain
environment as well as of a moderate upturn in the global economic cycle. On a global level, assisted by
low oil prices, airlines expanded their capacity and achieved healthy profitability with net profit margins in
2016 at the level of 5.1%, according to IATA. In addition, consumers benefited from lower travel costs and
more routes offered and RPKs increased overall by 6.3%. ACI also reports robust traffic gains worldwide
during 2016 at 5.5%, whereas passenger traffic across the European network posted an average growth of
5%. The total European growth was attributed to EU airports that showed a passenger rise of 6.7% contrary
to non-EU airports that posted an average decline of -0.9%, largely affected by reduced traffic at Turkish
airports and a weak performance of Russian airports.
For Athens International Airport, 2016 proved to be another milestone year, since not only passenger traffic
recorded an all-time high performance and enjoyed a strong rise, but it also surpassed the 20 million mark.
Both domestic and international passengers achieved record levels, while record levels were also reached in
foreign residents’ international arrivals that for the first time exceeded 4.5 million.
The aforementioned results are attributed to a dynamic expansion of the international route network of
the airport’s home base carriers and the successful performance of Greek and foreign visiting carriers,
combined with strong passenger demand dynamics. More specifically, despite the generally volatile market
environment and the initial unfavourable indications for incoming tourism, traffic dynamics of the second
half of the year were strong for both international and domestic tourism, in line with the global industry
trends. In the case of Athens and Greece, this positive outcome could partly be attributed to holiday
makers lately shifting from previously popular destinations facing turmoil to safer ones. Overall, foreign
residents demonstrated a rise of 8% during 2016 while Greek residents grew even more impressively
(+15%), largely supported by competitive air ticket prices.
As a result of all the above, airport’s traffic reached 20.02 million passengers in 2016 exceeding prior-year
levels by 1.9 million, a significant increase of 10.7%. Furthermore, the strong growth of transfer passengers
by 12% is a key highlight of AIA’s operational performance. The number of flights amounted to 189.1
thousand surpassing the respective 2015 levels by 7.4%.
Year 2016 was a new record year both in terms of traffic and of financial performance. Growth in operating
performance managed to offset changes in the cost structure deriving from the Airport Development
Agreement (i.e. increase in Grant of Rights Fee and indirect taxes) and extraordinary losses (impairment
loss of financial assets). Overall, in 2016 the Company recorded Profit before Tax (PBT) of € 189.1 million.
Given the additional short term financial obligations for the Airport Company arising from the recent
positive developments in connection with the concession extension a distribution of € 40.5 million as
dividend to its shareholders is proposed.
Financial Statements as at 31 December 2016 (Amounts in Euros unless otherwise stated)
3 of 57
Reporting by the BoD to the Annual General
Meeting of the Shareholders
Dear Sirs,
It is a pleasure to welcome you today to the 21st Annual Ordinary General Meeting of the Shareholders of
Athens International Airport S.A. (AIA), during which we shall review the year 2016.
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 21st 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.
During 2016 the global air transport industry continued to show a solid performance despite the economic
and political instability in many parts of the world. Year 2016 can be best appreciated if seen in two halves,
the first being marked by subdued economic activity and terrorist attacks, while the second witnessing
traffic picking up, most probably as a result of the travelling public accommodating to the uncertain
environment as well as of a moderate upturn in the global economic cycle. On a global level, assisted by
low oil prices, airlines expanded their capacity and achieved healthy profitability with net profit margins in
2016 at the level of 5.1%, according to IATA. In addition, consumers benefited from lower travel costs and
more routes offered and RPKs increased overall by 6.3%. ACI also reports robust traffic gains worldwide
during 2016 at 5.5%, whereas passenger traffic across the European network posted an average growth of
5%. The total European growth was attributed to EU airports that showed a passenger rise of 6.7% contrary
to non-EU airports that posted an average decline of -0.9%, largely affected by reduced traffic at Turkish
airports and a weak performance of Russian airports.
For Athens International Airport, 2016 proved to be another milestone year, since not only passenger traffic
recorded an all-time high performance and enjoyed a strong rise, but it also surpassed the 20 million mark.
Both domestic and international passengers achieved record levels, while record levels were also reached in
foreign residents’ international arrivals that for the first time exceeded 4.5 million.
The aforementioned results are attributed to a dynamic expansion of the international route network of
the airport’s home base carriers and the successful performance of Greek and foreign visiting carriers,
combined with strong passenger demand dynamics. More specifically, despite the generally volatile market
environment and the initial unfavourable indications for incoming tourism, traffic dynamics of the second
half of the year were strong for both international and domestic tourism, in line with the global industry
trends. In the case of Athens and Greece, this positive outcome could partly be attributed to holiday
makers lately shifting from previously popular destinations facing turmoil to safer ones. Overall, foreign
residents demonstrated a rise of 8% during 2016 while Greek residents grew even more impressively
(+15%), largely supported by competitive air ticket prices.
As a result of all the above, airport’s traffic reached 20.02 million passengers in 2016 exceeding prior-year
levels by 1.9 million, a significant increase of 10.7%. Furthermore, the strong growth of transfer passengers
by 12% is a key highlight of AIA’s operational performance. The number of flights amounted to 189.1
thousand surpassing the respective 2015 levels by 7.4%.
Year 2016 was a new record year both in terms of traffic and of financial performance. Growth in operating
performance managed to offset changes in the cost structure deriving from the Airport Development
Agreement (i.e. increase in Grant of Rights Fee and indirect taxes) and extraordinary losses (impairment
loss of financial assets). Overall, in 2016 the Company recorded Profit before Tax (PBT) of € 189.1 million.
Given the additional short term financial obligations for the Airport Company arising from the recent
positive developments in connection with the concession extension a distribution of € 40.5 million as
dividend to its shareholders is proposed.
Financial Statements as at 31 December 2016 (Amounts in Euros unless otherwise stated)
3 of 57
