Copenhagen Airport has recently provided an update on its expectations for the remainder of 2023, taking into account the continuous growth in passenger numbers.
The airport’s management has also acknowledged the temporary agreement reached between Naviair and air traffic controllers, which has contributed to reducing the uncertainty regarding passenger operations.
Outlook for Revenue Growth
Considering the factors mentioned above and the current trajectory of passenger growth, Copenhagen Airport’s management now anticipates the total number of passengers to exceed 26 million by the end of 2023, up from the previous estimate of 25 million.
This upward revision in passenger numbers has led to an adjustment in the expectations for revenue growth as well. The updated forecast for revenue growth stands at 13% for the full year 2023, as compared to the earlier projection of 10%.
It is important to note that the outlook for revenue growth remains uncertain due to various factors, including the geopolitical landscape and macroeconomic conditions.
Volatility in energy prices and increasing interest rates are among the factors that could impact travel sentiment and potentially have a negative effect on Copenhagen Airport’s financial outlook.
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Outlook for Profit Before Tax
In the event that passenger levels reach the projected 26 million, the airport’s profit before tax is expected to range between DKK 300 million to DKK 350 million, a significant increase from the previous estimate of DKK 150 million to DKK 200 million.
This positive adjustment in profit before tax is primarily attributed to the growth in passenger numbers. However, it should be noted that this growth will be partially offset by rising operating costs and interest levels compared to the previous year.
The anticipated increase in cost levels can be attributed to several factors. These include the expected rise in passenger-related activities, regulatory requirements, salary increase expectations, and inflation.
Despite these challenges, the management remains optimistic about the overall financial performance of Copenhagen Airport.
Outlook for Capital Investments
Copenhagen Airport has revised its investment level, including capitalized interest, to approximately DKK 1.6 billion for the year 2023, slightly lower than the initial estimate of DKK 1.7 billion.
The investment plan for 2023 is centered around the expansion of Terminal 3, which accounts for roughly half of the total investment.
The remaining half will be allocated to projects aimed at enhancing capacity, safety, security, and compliance within the airport infrastructure.
By making strategic investments, Copenhagen Airport aims to accommodate the growing number of passengers while ensuring a seamless travel experience and maintaining the highest standards of safety and security.
Conclusion
Copenhagen Airport has updated its expectations for the remainder of 2023, based upon the continued growth in passenger numbers.
The airport management foresees a passenger level exceeding 26 million, leading to an upward adjustment in revenue growth to 13% for the year.
Additionally, profit before tax is expected to range between DKK 300 million to DKK 350 million if passenger levels meet the projected target.
The airport also plans to invest around DKK 1.6 billion in various projects, focusing on expanding Terminal 3 and improving capacity, safety, security, and compliance.
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