Key Czech Aeroholding Companies Generate Operating Profit of CZK 4.9 Billion in 2017

“The year-on-year EBITDA growth of 600 million Crowns predominantly reflects the economic results of the Group’s key asset, Prague Airport, which experienced growth in passenger numbers and thus generated revenue. The year-on-year increase in gross operating profit was also fuelled by the efficient management of operating costs thanks to which we were able to increase employee salaries and continue with planned repairs of the airport infrastructure,” Václav Řehoř, Chairman of the Czech Aeroholding Board of Directors commented on the results, adding:

“I consider the first quarter of the year a success for the entire Group, too. Aviation business revenue grew significantly (+ 7%), together with continued growth in the number of transported passengers and aircraft movements. In terms of non-aviation business, the current economic results were positively influenced by the growth in lease-generated and airport lounge-generated revenue (+ 15%). On the other hand, our salary costs continued to grow, too, while we carried on investing in safety, modern technologies and increases to the existing capacity of airport terminals. This will all be reflected in the whole year results,” as he commented on the start of 2018.  

The gross economic result of the mother company of Czech Aeroholding and its key asset of Prague Airport grew by 15% year-on-year, from CZK4 billion to CZK 4,9 billion. The results were positively influenced primarily by a year-on-year growth in the number of handled passengers of 18% (a total of 15.4 million passengers), thanks to which the aviation business revenue grew by 15%. Following the launch of operations of the new shopping zone in Terminal 1 and additional service improvements, alongside other factors, the revenue generated by commercial activities grew by 15%, too.

The handling-generated operating profit, i.e. profit from passenger and aircraft handling provided at Václav Havel Airport Prague by Czech Airlines Handling (CSAH) to almost half the airport servicing air carriers, grew by 8 million CZK to 161 million CZK. The results were influenced primarily by the growth in volumes within the areas of handling, aircraft defrosting, aircraft refuelling and call centre operations for airlines. Thanks to higher revenue and reductions in operating costs, it was possible to increase employee salaries and expand the offer of employee benefits.

Czech Airlines Technics (CSAT), following a successful change in company strategy, continued to grow thanks to long-term relationships with its key customers and guaranteed maintenance work volume, primarily in the areas of aircraft base and landing gear maintenance. In 2017, the company’s EBITDA reached CZK 125 million. Last year, CSAT launched its fifth base maintenance line, resulting in investments in new equipment and stand refurbishing as well as the hiring and training of new employees to run the line. The construction of the new space for line maintenance, the purchase of a spare landing gear set and investments in company certifications, including employee training for the new Boeing 737 MAX and Airbus A320neo aircraft, were among other significant company investments.

In 2017, EBITDA of key Group companies grew by 601 million CZK to 4.9 billion CZK year-on-year as follows:

* Czech Aeroholding, Joint Stock Company (CAH), Prague Airport, Joint Stock Company (PA), Czech Airlines Handling (CSAH) and Czech Airlines Technics (CSAT)

** EBITDA – Earnings Before Interest, Taxes, Depreciation and Amortization