Avinor fourth quarter 2022: Positive developments for Norwegian aviation

10 Feb 2023 14:54 CET

A total of 44.7 million passengers travelled to, from or via Avinor’s airports
in 2022. This is a doubling of air traffic measured by the number of passengers
compared to 2021. Passenger figures for 2022 are nevertheless 17 per cent lower
than in 2019.

Air traffic through Avinor’s airports in 2022 measured by passenger numbers
increased by 99 per cent compared to 2021. The number of aircraft movements in
2022 increased by 27 per cent compared to 2021. This is still 9 per cent lower
than in 2019.

Changed travel habits
“Consequences of changes in travel habits, uncertainty due to the war in
Ukraine, high inflation, a long waiting time for Norwegian passports, increased
interest rates and industrial action and capacity issues in aviation, have
contributed to traffic failing to return to pre-pandemic levels,” says Executive
Vice President of Avinor, Abraham Foss.

In the first half of 2022, the tourism segment had the highest increase. In the
last half of the year, however, the business traveler segment had a substantial
increase. At the year end both of these segments were at an almost equal level,
but still behind the 2019 volumes.

A continued difficult financial situation for Avinor
The equity ratio, calculated in accordance with the articles of association, is
39.1 percent at year-end. For 2023 the equity requirement has been adjusted
downwards from 40 to 37 per cent.

“Scaling up operations to meet increased traffic volumes is carefully balanced
against increased operating costs. In addition, the project portfolio is being
continuously assessed and prioritised. An extraordinarily strong increase in
prices for building and construction projects represents an increased risk in
Avinor’s project portfolio,” Foss says.

Operating revenues in 2022 amounted to NOK 10,389 million, an increase of 11.5
per cent compared to 2021.
Total operating expenses in 2022 comprised NOK 9,609 million, compared to NOK
8,485 million in 2021, which represents an increase of 13.2 per cent.

“It is particularly an increase in volume-dependent costs for personnel and
security, as well as strong growth in power costs that contribute to a high
percentage increase in operating costs. Cost developments must therefore be
viewed in the context of significantly higher traffic and generally high price
increases for several input factors in 2022,” Foss says.

For 2022, the Group recorded a profit after tax of NOK 402 million, compared to
NOK 208 million in 2021. The result for 2021 included government grants of 3,800
million before tax, while Avinor has not received government grants in 2022.

These events marked the past year
In 2022, Oslo Airport was the most punctual for departures among Europe’s 20
largest airports and was also named the best airport in Europe in terms of
landings that save emissions and reduce noise.

The roll-out of remotely operated towers is making good progress. After the
transfer of operations at Svolvær Airport at the end of January 2023, a total of
nine airport towers are remotely operated from the tower centre in Bodø.

In December 2022, Avinor’s Board of Directors approved the development of a new
airport in Bodø. A partnership between Bodø municipality, the Norwegian Armed
Forces and Avinor has led to the decision that will see Avinor build a new
airport that is scheduled for completion in 2029. The cost framework for the
project is NOK 7.2 billion, of which Avinor will contribute NOK 2.6 billion.

The preparatory construction work for the new airport in Mo i Rana started in
September 2022. A process is ongoing to reach an agreement for full access to
the site before further construction work can start. The project has a cost
framework of NOK 3.3 billion that is funded by other players than Avinor.

Greater awareness of security related to critical Norwegian infrastructure has
led to increased focus on illegal drone activity. There have been several
observations of the illegal use of drones around Avinor’s airports, which has
led to some airports closing for shorter periods.

“Avinor is continuing reinforced measures to monitor the situation. Apart from
this, reduced traffic in Norwegian airspace means that the outbreak of war in
Ukraine has not led to significant operational consequences,” Foss concludes.

More information:
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582076_Avinor_Q4 Rapport 2022_EN.pdf