Flughafen Wien AG (WBO:FLU) (H1 2025) Earnings Call Highlights: Strong Revenue Growth Amid ...

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Revenue: Increased by 7.4% in H1 2025. Net Profit: Rose by 6.2% in H1 2025. EBITDA: Up by 3.3% in H1 2025. EBITDA Margin: Declined due to high cost increases, especially in personnel expenses. Passenger Growth: Increased by 4.7% in the group. Personnel Expenses: Increased by 12% due to non-consolidation of Gate 2 and other factors. Net Liquidity: Decreased from EUR511 million to EUR398 million due to dividend payouts. Equity Ratio: At 68.7% despite a reduction in equity. CapEx: Increased to EUR140 million, with full-year expectations around EUR300 million. Malta Airport Revenue: Increased by 11.6% with EBIT up by 11%. Retail and Properties Revenue: Center management and hospitality up by 9%, parking up by 8%, rentals up by 7%. Passenger Service Charge: Expected reduction of 4.6% in 2026. Landing Fees: Expected reduction of 2.15% in 2026. Free Cash Flow: Improved due to proceeds from the disposal of investments. Handling and Securities EBIT: Decreased to EUR0.5 million from EUR2.3 million in H1 2024.

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Release Date: August 19, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Revenues increased by 7.4% and net profit rose by 6.2% in the first half of 2025. Positive contributions from Malta exceeded expectations, with strong passenger growth and new airline partnerships. The Terminal 3 Southern Expansion Project is on time and within budget, expected to be operational by the first half of 2027. Airport City projects are progressing well, with new companies and facilities enhancing the airport's infrastructure. Operational performance has improved, with Vienna Airport being one of the most punctual in Europe and Austrian Airlines leading in punctuality within the Lufthansa Group.

Negative Points

EBITDA margin decreased due to high cost increases, particularly in personnel expenses. Expected reduction in passenger charges and landing fees in 2026 due to the expiration of COVID special regulations. Handling and security segments face challenges due to rising staff costs and competitive pressures. Regulatory burdens, such as European Regulation 2019/225 and sustainable aviation fuels, could increase ticket prices significantly. Uncertainty remains regarding the third runway project due to ongoing legal and regulatory challenges.

Q & A Highlights

Q: Regarding traffic at Vienna, weve seen negative performances in both June and July. Could you tell us the share of Middle East traffic in those months and the development excluding Middle Eastern routes? Also, any updates on future airline capacity to Vienna? A: The Middle East traffic, particularly from Tel Aviv, significantly impacts Vienna as many passengers transit to the US. We will provide exact figures soon, but we expect improvements with growing transfer passengers. For future capacity, Austrian Airlines will receive Boeing 787-9 aircraft, indicating slight seat growth in Vienna. They plan to phase out Embraer aircraft by 2028, focusing on 787 and A320neo models.

Story Continues

Q: You mentioned offsetting the impact of reduced passenger charges through cost reduction and efficiency improvements. Can you elaborate on these measures? Also, is the anticipated 3% drop in charges for 2026 still valid? A: We aim to offset the impact significantly, though not fully by 2026. Measures will focus on personnel costs, which have seen steep increases. Efficiency improvements will be crucial. The anticipated 3% drop in charges for 2026 remains valid, and we are preparing to address this challenge.

Q: Any updates on the new runway in Vienna? Are there regulatory decisions pending? A: There are no new developments. The highest administrative court is still reviewing whether extending the building period is part of the permission process. This decision is crucial for many projects. It's been 16 months since the motion was submitted, and we await their decision.

Q: Regarding potential cost savings for 2026, can personnel expense savings be achieved without affecting airport punctuality? Also, what are the expectations for personnel costs in the second half of the year? A: We do not plan to hire additional staff broadly. Cost savings will come from various small measures, including automation and process improvements. We aim to maintain punctuality while becoming more efficient. Personnel cost increases should stabilize, with hiring slowing down due to expected flat passenger growth.

Q: What is the potential for passenger growth in 2026, particularly concerning China? A: Passenger numbers from China are still below 2019 levels, but China is not a major market for us, representing only 3.6% of East Asia's market share. While we hope for growth, China's impact is limited.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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