First quarter 2025: Increased earnings and traffic

27 May 2025 12:00 CEST

"The strengthened earnings are driven by traffic growth, adjusted airport
charges, and an improved operating margin through strict cost management and a
clear revenue agenda," says CEO Abraham Foss at Avinor.

The group's earnings improved in the first quarter of 2025 compared to the first
quarter of 2024. Adjustments to airport charges effective from February 2025
have resulted in higher fee revenues. Additionally, both a traffic growth of 6.0
percent and increased revenue per passenger contribute positively.

Total operating costs for the quarter amounted to NOK 2,215 million,
representing an underlying increase of 4.9 percent (adjusted for other costs).
This is mainly explained by general price and wage growth, but partly also by
increased traffic activity. Total operating revenues for the quarter amounted to
NOK 2,904 million, representing an underlying growth of 16 percent (adjusted for
other revenues). The result for the first quarter of 2025 includes other items
with a positive net effect of NOK 8 million compared to a negative net effect of
NOK 68 million in the first quarter of 2024.

Avinor continuously works to adjust costs to ongoing operations. However, a
significant portion of the group's cost base is relatively fixed and necessary
to maintain safe and stable operations as required by the societal mission, as
well as to perform government-mandated tasks. The group's adjusted EBITDA for
the first quarter of 2025 was NOK 689 million, which is an increase of NOK 299
million compared to the first quarter of 2024.

There is still dialogue with the Ministry of Transport regarding the follow-up
of the recommendations from KPMG in the independent company review conducted in
2024. This includes, among other things, the scope Avinor will have to optimize
its own operations and cash flow, financing of tasks that Avinor performs for
other sectors, as well as capital structure and dividend policy.

Traffic growth
11.4 million passengers traveled through Avinor's airports in the first quarter
of 2025, an increase of 6.0 percent compared to the first quarter of 2024.
Growth in domestic and international traffic was 5.4 and 6.8 percent,
respectively. International traffic accounted for 38.8 percent of the total
number of passengers in the first quarter of 2025, compared to 38.5 percent in
the same quarter the previous year.

The largest increase comes from regional airports, with Tromsø leading the way.
Oslo Airport experienced an increase of 5.2 percent from the same quarter last
year, while Stavanger Airport had the weakest development with only 0.6 percent
growth. Trondheim grew the most among the four major airports, with 5.8 percent.
Avinor expects moderate traffic growth, up to 57 million passengers in 2031.
International passenger traffic to Norway is expected to have good growth, while
domestic traffic levels off. New travel patterns and new customer groups affect
Avinor's commercial revenues and impose changed requirements on the service
offerings at the airports. Avinor's traffic and commercial revenues are exposed
to changes in traffic volume driven by both reduced supply from airlines and
reduced demand for air travel from the market. Traffic and financial forecasts
take into account the mentioned market outlooks to the best of their ability.

Several major investment projects
There is close follow-up and continuous focus on prioritizing the project
portfolio. Avinor is undergoing a major change agenda with several large ongoing
investment projects. Particularly, investments in upgrading baggage handling
systems at Oslo Airport and government-mandated projects related to the renewal
of airspace control and monitoring systems contribute to high investments.
Additionally, the two major construction projects of new airports in Bodø and Mo
i Rana are ongoing, as well as upgrades to the airports in Tromsø, Evenes, and
Andøya.

The changed security policy situation with new requirements for the national
total defense in general, and the Norwegian Armed Forces in particular, may lead
to ongoing premise changes that represent a risk of increased costs for
development projects that interface with the Armed Forces.

Contact:
Abraham Foss, CEO, +47 479 01 111
Petter Johannessen, CFO, +47 400 03 003
Hilde Vedum, Finance Director, +47 995 00 534

More information:
Access the news on Oslo Bors NewsWeb site

647624_Avinor Q1-2025 eng.pdf