Flughafen Zürich AG concluded the half year 2013 with a profit of 10.1 million Swiss francs, a minus of 87 percent. The one-off effect resulting from the restructuring of non-current financial liabilities decreased the profit by 73.3 million Swiss francs. Revenues increased by 2.7 percent to 469.4 million Swiss francs and EBITDA grew by 1.3 percent to 245.3 million Swiss francs compared to the figure of the previous year’s period. Total passenger volume increased by 0.1 percent.

Traffic figures
Zurich Airport was used by a total of 11.8 million passengers (plus 0.1%) in the period from January until June 2013. While the number of local passengers increased by 1.6 percent, the transfer volume fell by 2.5 percent. The transfer share was at 33.8 percent in the first half year of 2013.

Flight movements saw a decline of 4.0 percent to 128’509 arrivals or departures. The seat load factor increased from 72.5 percent to 73.6 percent while the average number of passengers per flight rose by 2.7 percent to 106 passengers. Compared to the previous year’s period freight declined by 2.7 percent to 204’606 tons.

Revenues
Total revenue increased by 2.7 percent to 469.4 million Swiss francs compared to last year’s figure. Despite the stagnation in traffic volume, revenue from the aviation segment increased by 1.5 percent to 287.9 million Swiss francs. Revenue from the non-aviation segment grew by 4.7 percent to 181.5 million Swiss francs compared to last year’s period.

With taking over a controlling stake of A-Port Operaçiones in January 2013, the Chilean management company is now fully consolidated. In the first half year 2013, A-Port Operaçiones contributed with 3.7 million Swiss francs revenue to the consolidated non-aviation segment.

One-off effect on financial liabilities
In May 2013, the Japanese Private Placement of 2003 was repaid in full ahead of schedule. In addition, the instrument for hedging the currency risks associated with future interest payments and repayments from this loan was discontinued. For refinancing purposes, Flughafen Zürich AG placed a new bond with a 10-year maturity in April. The restructuring of non-current financial liabilities resulted in a one-off financial expense after tax of 73.3 million Swiss francs. The restructuring will lead to significantly lower interest costs in subsequent years. Excluding this effect, the company would have posted a 4.0 percent higher profit of 83.4 million Swiss francs for the reporting period.

Operating costs
Operating costs rose by 4.3 percent to 224.1 million Swiss francs in the first half year of 2013. The first-time consolidation of A-Port Operaçiones had an impact of 3.4 million Swiss francs. Apart from this one-off effect, the increase was mainly triggered by higher employer restructuring contributions to the BVK Pension Fund. Also the harsh winter period made an impact on higher operating costs. Sales, marketing and administration costs could be reduced significantly as a result of strict cost management.

Noise compensation
In the first half of 2013, a total of 18.7 million Swiss francs whereof 10.3 million Swiss francs for formal expropriations and 8.4 million Swiss francs for sound insulation and resident protection were paid out of the Airport Zurich Noise Fund. In the prior year reporting period, the payments totalled at 6.7 million Swiss francs. This year, payments could be advanced substantially.

Negotiations over Airport Charges
The negotiations conducted for the first time at Zurich Airport in accordance with the new Ordinance on Airport Charges failed to reach an agreement by the negotiation parties. The negotiations were initiated on February 25, 2013 and extended by the maximum of two months on June 24th, 2013, on demand of all negotiation parties. Flughafen Zürich AG will now submit an Airport Charges proposal for examination and approval to FOCA. The decision by FOCA is not expected before October 2013.

Real Estate Project “The Circle”
The preliminary project has been concluded by the end of June 2013. The project was further refined and additional security regarding investment costs could be reached. Based on these achievements, Flughafen Zürich AG decided to start construction planning as next project phase. The pre-letting quote for the first phase has reached 30 percent so far and shall be increased to 50 percent by the start of construction in the end of year 2014. The first phase shall be completed by 2018, with the first building sections usable in year 2017. In the first half of the year 2013, potential debt and equity investors were addressed. In the second part of this year, a selected number of interested parties will go through a due diligence with the aim to conclude financing contracts by the end of year 2013.

Outlook
Flughafen Zürich AG expects a stagnating, moderate at the most growth in passenger volume for the year 2013. Air traffic movements (ATMs) are expected to decrease again. Excluding the one-off effects during 2012 and the one-time restructuring expenses for financial liabilities this year, Flughafen Zürich AG expects the result of the financial year 2013 to be slightly above the prior year’s level.