Avinor in 1st quarter: Modernisation programme and expansion projects on schedule

Avinor in 1st quarter: Mmodernisation programme and expansion projects on schedule

Avinor - May 13, 2016 07:10 BST

Air traffic at Avinor's airports increased by 2.7 per cent, while the operating result comprised NOK 71 million in Q1 2016, compared to NOK 143 million for the same period last year. Avinor's modernisation programme is on schedule, with a goal of annual savings of NOK 600 million from 2018. In 2017 the expansions of Bergen Airport and Oslo Airport will be completed.

Air traffic at Avinor's airports increased by 2.7 per cent, while the operating result comprised NOK 71 million in Q1 2016, compared to NOK 143 million for the same period last year. Avinor's modernisation programme is on schedule, with a goal of annual savings of NOK 600 million from 2018. In 2017 the expansions of Bergen Airport and Oslo Airport will be completed.

“We provide good and safe operations, our expansion projects are on schedule, and we are set to reach our cost-saving targets. We are very pleased with this. As in previous years, the first few months of the year have yielded a poor result. Aviation is linked to the overall economy, and this is evident from the industry's results,” says CEO Dag Falk-Petersen of Avinor.

Air traffic through Avinor’s airports in the first quarter of 2016 increased by 2.7 per cent compared to the corresponding period last year. The increase is most pronounced in international traffic, while offshore helicopter traffic continues to decline. Avinor Air Navigation Services saw a reduction in income from overflights over Norway of 1.9 per cent in Q1.

The Group’s operating income for the period was NOK 2,288 million, and the result after tax was NOK -2 million. The result after tax was reduced by NOK 39 million compared to the corresponding period last year as a consequence of reduced operating income, increased project costs carried over the income statement and increased depreciations. The group's underlying operating costs showed a decline of 4.9 per cent compared with the same period last year.

Improving operations

In early 2015 Avinor decided to implement a extensive modernisation programme. For the 2015-2018 period a goal has been set of combined cost cuts amounting to NOK 1.5 billion, with NOK 600 million in cost savings per year from 2018. The programme's forecast for gains as of March 2016 is ahead of schedule.

Good operations

The Group’s operations are be safe and reliable, with average regularity of 99 per cent and punctuality of 89 per cent over the last 12 months.

Expansion projects on schedule

Expansion projects at Oslo Airport Gardermoen and Bergen Airport Flesland are on schedule in terms of progress and budget. The project at Gardermoen is approximately 92 per cent complete, and Flesland is approximately 81 per cent complete as at 31/03/2016. Both projects are expected to be completed on budget in 2017 as planned.

Avinor is responsible for the 46 state-owned airports and air navigation services for civilian and military aviation in Norway. This network links Norway together - and links Norway to the world.

Avinor is a driving force in environmental work in aviation and a driving force to reduce the combined greenhouse gas emissions from Norwegian aviation. The company has a leading role in the work on developing and delivering biofuel for aircraft. Every year Avinor contributes to safe and efficient travel for around 50 million airline passengers. Around half travel to and from Oslo Airport.

More than 3,000 employees are responsible for planning, developing and operating airports and air navigation services. Avinor is funded by aviation fees and commercial sales at the airports.