Royal Schiphol Group publishes annual results 2017

Schiphol reaches the limit of air transport movements

Today, 16 February 2018, Royal Schiphol Group publishes its results for 2017. The net result, in line with the previous forecast, is 8.7% lower than in 2016 and amounts to 280 million euros (2016: 306 million euros).

Royal Schiphol Group President & CEO Jos Nijhuis: 'The aviation sector performs a pivotal role in society. The surge in air traffic at our airports continued in 2017. Indeed, Amsterdam Airport Schiphol has now nearly reached the maximum number of air transport movements permitted. This calls for new agreements on the long-term safe, smart and sustainable development of aviation beyond 2020 to enable us to continue fulfilling our socio-economic role – connecting the Netherlands to the rest of the world. We are continuously investing in our airport infrastructure, such as the new pier and terminal, to ensure a high level of quality for travellers and airlines. Until this extra capacity becomes available, we will continue to take further operational measures to avoid bottlenecks at peak times. Today we are working hard to provide quality and are laying a solid foundation for tomorrow's operations: Perform Today, Create Tomorrow.'

The main reason for the lower net result are the operational measures required to accomodate the growth in passenger numbers and to maintain the same level of quality. The existing infrastructural capacity has been fully utilised. This required relatively costly operational measures leads to an increase in operating expenses and puts pressure on the Aviation results. Revenue increased by 2.4% to 1,458 million euros. The effect of the

7.1% fall in airport charges at Schiphol as at 1 April 2017 was compensated to a considerable extent by the 7.7% rise in passenger numbers. The market developments in the real estate sector were positive leading to an increase in the value of our real estate portfolio, despite a fair value loss on two cargo buildings. The result includes an amount of approximately 25 million euros to be settled with the airport charges for the 2019-2021 period (2016: 52 million euros).

Key developments

• Amsterdam Airport Schiphol saw the passenger volume rise by 7.7% to 68.5 million. The number of air transport movements at Amsterdam Airport Schiphol, at 496,748, has practically reached the annual limit of 500,000 set for the period up to and including 2020. Cargo volumes increased to 1,752 million tonnes (+5.4%).

• Following successive reductions (totalling 23% over the past three years), the airport charges will see a 5.4% increase effective 1 April 2018.

• Total revenue from concessions and parking is up. Average retail spending per departing passenger in the shops behind the security checks at Schiphol fell from 13.65 euros to 13.35 euros (-2.2%). At the same time, average spending per departing passenger in catering facilities rose from 4.32 euros to 4.68 euros (8.4%).

• The result on the sale of the Hilton Hotel was 26 million euros (18 million euros net).

• The contribution of international activities to the net result amounts to 100 million, in particular by Groupe ADP and Brisbane Airport Corporation. This is 36% of the total net result.

• The development of Lelystad Airport is proceeding according to plan. This development is desperately needed to be able to fulfill the selectivity policy.

• Eindhoven Airport saw a 19.5% increase in passenger volume to 5.7 million passengers.

• Effective 1 January 2018, the Schiphol Group airports meet all their energy requirements with energy from Dutch wind farms.

The full document (PDF) is available to download.