Lithuanian Airports: operating revenues are up, expenses are down
2015 was the first year when Vilnius, Kaunas and Palanga airports operated jointly as the network of Lithuanian airports. It was the year which did not only see a record number of passengers reaching 4.2m but also a double increase in net profit. Compared to 2014, it soared up 74% to EUR 2.1m.
Over a year the revenues of Lithuanian Airports rose 12% to EUR 24.5m. Aeronautical revenues accounted for over 60%, showing a 10% increase compared to the results of 2014. It was determined by the expanded route network – last year the airports handled 15 routes more compared to the year before; additional flights on the most popular routes were introduced as well. There will be even more flights during the summer season this year - 19 airlines operate flights to 65 destinations in 54 cities and 26 countries in Europe and beyond it from Lithuanian airports.
The route development fund founded at the initiative of Lithuanian Airports was a substantial contribution to the launch and development of new routes. Its investments are targeted at the increase of the country's accessibility by direct flights, in particular those routes which are essential for the country’s economic growth, development of business relations and international projects as well as promotion of inbound tourism.
In 2015 the non-aeronautical revenues of Lithuanian Airports amounted to EUR 9.2m. The new services such as Subway snack bar, Švyturys bar, pharmacy and others and the improvement of the quality of existing services determined a 15% annual growth in non-aeronautical revenues. One of their major sources – the lease of premises in airport terminals.
“The annual operating results of Lithuanian Airports are yet another proof that the merger of Vilnius, Kaunas and Palanga air gateways was the right strategy. Our performance is rising; we are now all in pursuit of the same strategic goals – much attention is paid to the development and quality of the services provided, while financial stability is ensured through both the increase of revenues and the management of operating expenses,” said Gediminas Almantas, Managing Director of Lithuanian Airports.
In 2015 the enterprise’s operating expenses were 7% lower than expected and accounted for EUR 16.2m. Over a year Lithuanian Airports spent EUR 7.8m for investments. Most of them, i.e. over 70%, were spent for modernisation, development and acquisition of buildings and structures. What is more, projects targeted at the development of airport services, modernisation of infrastructure, aviation security and flight safety were put into effect.
Lithuanian Airports’ EBITDA margin accounted for 34% for 2015, whereas the net profit skyrocketed 74% compared to the previous year and accounted for EUR 2.1m.