Aena Loses 126.8 Million Its First Red Numbers

Aena Loses 126.8 Million Its First Red Numbers

The airport manager Aena lost a total of 126.8 million euros in 2020 , its first red numbers since 2012 , compared to a net profit of 1,442 million in 2019, according to a statement to the National Securities Market Commission (CNMV), which also reflects a drop in income by half.

The limitations derived from the coronavirus pandemic cut the number of passengers at the network’s airports – including those in Luton (United Kingdom) and the six aerodromes of the group in northeast Brazil – by 70.9%, to 89.3 million in 2020 , up from record numbers a year earlier .

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For this reason, the company’s revenues were reduced by almost half: from 4,503.3 million in 2019 to 2,242.8 million in 2020. Derivatives from airport activity fell by 1,908 million (67.1%) and commercial and real estate did it in 209 million (15.9%) in the middle of a conflict over the rents of the premises during the pandemic .

Aena warns that in the short term there are no signs of recovery in traffic due to the new wave of infections in Europe and the restrictive measures applied by the different European countries, so “it is not possible to anticipate when the recovery “despite the fact that the airlines hope to fly back in summer .

Gross operating profit plummets
The group’s gross operating profit (ebitda) fell 74.2% , from 2,766.2 million in the previous year to 714.6 million in 2020, with a margin of 31.9% compared to the previous 61.4%.

Aena recorded income from the Guaranteed Annual Minimum Income (RMGA) for 635.5 million, including those corresponding to the period of the first state of alarm (198.6 million) since there is a contractual right to receive these income.

Revenues evolved positively in duty free stores , with an increase of 39 million (11.3%) and in restaurants, with a slight growth of 0.2%.

In activities not subject to this income regime, Aena recorded decreases of 34.9% in vehicle rental; 68% in car parks, due to the reduction in passenger traffic, and 73.9% in VIP services , because the lounges and business centers were closed and only some began to open as of July.

During the past year the airport manager maintained an average workforce of 8,961 employees , slightly higher at the end of 2019 (8,695 people).

Savings and investment plan
The company has defined a cost saving plan based on the renegotiation of operational service contracts, the elimination of expenses and the stoppage of new non-essential hires, which has reduced monthly cash outflows by around 43 million euros. Accumulated savings for the April-December period totaled 404.7 million .

In addition, the company temporarily suspended the investment program , with a monthly reduction in average cash outflows of about 52 million euros, although the plan was restarted in June. The investment carried out was 435.7 million.

Aena has cash and credit facilities amounting to 2,065.6 million euros, a figure to which is added the possibility of making issues through the Euro Commercial Paper (ECP) program of up to 900 million euros, of which 845 million euros are available.

Now the company is renegotiating contracts for the rental of stores, vending machine restoration services, financial services in relation to the guaranteed minimum rent with different formulas depending on the activity periods (prior to the alarm state or later) of 2020 and until September 8, 2021. Thereafter, pre-pandemic conditions will resume.

Incentives to airlines
Aena continues with its policy of commercial incentives to promote the flight schedules of the airlines. Thus, the Board of Directors has approved a new extraordinary incentive for the recovery of operations for the summer season of 2021. This measure, which will be applied between April 1 and October 31, encourages the recovery percentage that exceeds certain certain thresholds.

For the first three months, the established recovery threshold is 30% and, for the last four months, 45% . All operations carried out from these percentages will be incentivized in their landing rate in the same percentage of their recovery, according to Aena.

The incentive assumes that companies will receive a discount on the average monthly landing rate for all operations that exceed the established levels, regardless of the number of passengers they transport.

Likewise, in March the rates corresponding to 2021 will come into force , to which the National Commission of Markets and Competition (CNMC) has given its approval for their freezing, after recovering deficits from previous years.

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