(AOF) – ADP announces that Paris Airport traffic (Paris CDG and Paris Orly) is up 8.3% in October 2023 to 8.9 million passengers, or 96.0% of 2019 traffic. first nine months, this traffic is up 17.2% to 84.46 million passengers, or 91.8% of 2019 traffic. The group’s traffic, including data from TAV Airports, will be communicated subsequently, from the publication of Turkish airport traffic by the Turkish Airport Authority (DHMI).
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The strong points of value
– World number 1 in airport management with more than 280 million passengers;
– Turnover of €2.8 billion divided into 5 divisions – the aeronautical activities of the 3 Paris airports, shops & services, the real estate activity of the terminals (ADP being one of the largest land owners on the island -de-France), international and other activities;
– Economic model aiming to become a leader in the design, construction and operation of airports and relying on the 3 Paris airports, the 27 airports managed around the world as well as agreements with airlines;
– Capital held 50.6% by the French State, ahead of the Dutch Shiphol (8%) and the Vinci group (8%), Augustin de Romanet, general director, chairing the board of directors of 15 members;
– Tense financial situation, with a debt of €8.3 billion as of June 30, 2022, i.e. a leverage effect of 6.4 (but guaranteed by the State).
Challenges
– “2025 Pioneers” strategy:
– infrastructure: +80% of departures on time, multimodal connections,
– concessions: average maturity stabilized at 30 years;
– Innovation strategy focused on telecom & mobility services via Hub One:
– global digital ecosystem centered on data, via 100 international routes and the “smartization” of airports,
– partnership with Saclay in sustainable projects – call for concrete projects before the establishment of a Green Innovation Hub in 2024 at Roissy airport,
-120 experiments including 30 industrialized;
– Environmental strategy of carbon neutrality in 2030 for ground operations: improvement of air quality, waste recovery, use of 10% low-carbon energy and preservation of surfaces for biodiversity;
– Launch of 3 joint ventures: with Air Liquide in services and engineering for the transition to hydrogen in airports, with JC Decaux for the management of advertising activities and with Lagardère for that of retail points of sale in Paris;
– Continued recovery of air traffic in 2022 – rate of 80.9%, vs 2019, pre-covid year, for the group and 80.2% for Paris Aéroport – and expenses per passenger, of €26.1 .
Challenges
– Strong correlation to the financial health of airlines, notably EasyJet and AirFrance-KLM, 1st and 2nd operators in Paris;
– End of HubLink industrial cooperation between Aéroports de Paris and the Dutch Schiphol, leading by May 2023 to the end of cross-shareholdings;
– Review of international activities;
– After a near doubling of turnover at the end of September, 2nd increase in 2022 objectives: operating margin to + 34.5%, and 2023 ambition of a debt leverage effect of between 5 and 5.5 thanks to a decline in investments in Paris.
Results weakened again for European companies
While fuel represents up to 35% of their costs, professionals estimate that European airlines are not expected to return to profit before 2023 or 2024 at the earliest. These players predict that energy prices would remain high at least until 2023. The International Air Transport Association (IATA) announced a forecast of cumulative losses of $9.7 billion in 2022 for airlines to across the world we will still have to wait until 2023 to see a return to profits on a global scale, particularly due to the surge in oil costs and the increase in labor costs. Positive point: travel demand seems to be resisting the uncertainties caused by the international economic and political situation. However, uncertainties regarding Covid, the war in Ukraine, as well as rising prices are increasing last-minute reservations. According to Iata, only 8% of international reservations made at the end of May went beyond September.
The social climate is deteriorating in low-cost airlines
These companies are benefiting from a very strong recovery. They had already managed to monopolize 40% of air traffic in 2021, this proportion could even rise to 50% this year. However, strike movements have affected the activity of Volotea, EasyJet and Ryanair, with confrontations over remuneration and working conditions. Generally speaking, the sector is facing a shortage of personnel. After having severely cut their workforce in 2020 and 2021, companies and airports must urgently recruit to support the resumption of activity.