Press Releases

TAV served 21 m passengers in nine months

TAV served 21 m passengers in nine months

In the first nine months of the year, TAV Airports served 10 million international passengers and 11 million domestic passengers.

TAV Airports announced its operational and financial results pertaining to the first nine months of the year.
 

TAV Airports Holding Executive Board Member & CEO Sani Sener stated “Aviation is the sector that has been the most affected by the Covid-19 pandemic. At the peak of the pandemic lock downs in April and May, we saw our passenger numbers drop to nearly zero due to the border closings. Our main task since March has been to take the necessary cost cutting actions fairly between stakeholders, shareholders, investors and our employees. We have done our best with regards to this balance. With a very quick response, we decreased our cash OPEX 55% in the second quarter and 53% in the third quarter. I would especially like to acknowledge our employees and sub-contractors for making this possible.

 

Pandemics are very clearly defined in our contracts as a ‘Force Majeure’ event. Therefore, we have made the relevant applications to the aviation authorities that we partner with for compensation of our lost revenue based on these clauses. Compensation methods which may differ from contract to contract could be in the form of time extension, rent postponement or other methods to compensate for our losses.

 

As of July 2020, Turkish Airports, Tunisia and Macedonia have reopened to international flights. Georgia is partially open with full opening expected in November and partial reopening of Medinah Airport to international flights took place in September with scope expected to enlarge in November. Zagreb kept open during the pandemic.

 

The mutual inclusion of countries and or cities in each other’s respective ‘Covid-19 green lists’ that designate ‘safe countries’ with no quarantine requirements is what drives the recovery level in each reopened airport.

 

As more countries were added to the mutual green list with Turkey, we saw a material rebound in traffic which mainly started in August 2020. Despite the limited number of countries with mutual green lists with Turkey, in September 2020, on a monthly basis, Antalya recovered 45% of international passengers and Bodrum recovered 59% of international passengers vs. 2019. The fast recovery that materialized in the course of 8 weeks demonstrates the existence of pent-up travel demand for short-haul budget destinations even with the pandemic still not over. This gives us evidence that the recovery in our airports could be very fast once we start to normalize.

 

We have received the pre-approval from IFC and EBRD for the loans to use in the financing of the Almaty transaction. The final work that needs to be done before the close of Almaty transaction is nearly complete and we plan to close the transaction in the fourth quarter of 2020. Almaty’s revenue is less dependent on tourism and more dependent on cargo and transit traffic of airlines crossing Asia on the New Silk Road. With these defensive characteristics, Almaty’s financials were much less affected by the pandemic compared to the airports in our portfolio. As a perpetuity with no renewal risk, Almaty will be a valuable addition to our portfolio.

 

We are also very close to finalizing the Tunisia debt restructuring talks the details of which we will disclose once the deal closes. Turkish Government has taken fast and decisive precautions to stop the loss of employment during the pandemic. The latest package disclosed will also be very instrumental in keeping employment high and returning to the growth path outlined in the New Economic Program.

 

As we navigate our Company through these unprecedented times, we can count on our strong balance sheet and the unwavering support of our employees, shareholders and business partners to whom I would like to express my deepest gratitude.”

 

KEY PERFORMANCE INDICATORS

 

 (in EURm) 

9M19

9M20

 Chg%

Revenue

583.7

228.5

-61%

EBITDA

234.4

16.9

-93%

EBITDA margin (%)

40.2%

7.4%

-32.7 ppt

  Net Profit From Continuing Operations

98.3

(196.2)

nm

  Net Profit from Discontinued Operations

51.8

(4.4)

nm

  Total Net Profit

150.1

(200.6)

nm

Number of passengers (m)

71.5

21.0

-71%

- International  

45.7

10.0

-78%

- Domestic  

25.9

11.0

-58%

 

(*) All commercial traffic of Istanbul Ataturk Airport was transferred to the New Istanbul Airport on April 6th, 2019. As per IFRS 5.13, Revenue and EBITDA reported after the closure have been restated to exclude the results of TAV Istanbul. TAV Total pax numbers reported after closure also do not include the results of Istanbul Ataturk Airport.

 

About TAV Airports

TAV Airports provides integrated services in all areas of airport operations, with a global footprint at 100 airports in 30 countries. A member of Groupe ADP, TAV Airports is part of the leading airport management platform globally that served 218 million passengers in 2019. Through its subsidiaries, TAV is active in airport service businesses, including duty-free, food and beverage, ground handling, IT, private security and commercial area management. The company is quoted on Istanbul Stock Exchange.

 

For further information: Erhan Üstündağ,
+90 212 463 30 00/2097 and +90 530 228 80 59,
erhan.ustundag@tav.aero
www.tavhavalimanlari.com.tr
http://ir.tav.aero