Avinor Group, a State-owned company managing most of the civil airports in Norway, reported improved earnings in the first quarter of 2025 compared to the first quarter of 2024. Adjustments to airport tariffs, effective from February 2025, led to increased revenue from fees. Additionally, both a 6.0% growth in traffic and an increase in revenue per passenger contributed positively.

Total operating costs for the quarter amounted to NOK 2,215 million, up 4.9% (excluding other costs). This increase is mainly due to the general rise in prices and wages, but also partly due to increased traffic activity. Total operating revenues for the quarter reached NOK 2,904 million, reflecting a 16% growth (excluding other revenues). The result for the first quarter of 2025 includes other items with a net positive effect of NOK 8 million compared to a net negative effect of NOK 68 million in the first quarter of 2024.

Avinor is continuously committed to aligning costs with ongoing operations. However, a significant portion of the Group's baseline costs are relatively fixed and essential to maintain safe and stable operations, as required by its corporate mission, as well as to fulfill activities mandated by government directives. The Group’s adjusted EBITDA for the first quarter of 2025 was NOK 689 million, an increase of NOK 299 million compared to the first quarter of 2024.

A dialogue is still ongoing with the Ministry of Transport regarding the follow-up on the recommendations from KPMG’s independent business review conducted in 2024. This includes, among other matters, the scope in which Avinor should optimize its operations and cash flow, the financing of activities Avinor performs for other sectors, as well as the capital structure and dividend policy.

Traffic Growth

In the 1Q2025, Avinor airports handled 11.4 million passengers, marking a 6.0% increase compared to the first quarter of 2024. Domestic and international traffic grew by 5.4% and 6.8% respectively. In the first quarter, international traffic accounted for 38.8% of total passenger numbers, up from 38.5% in the same quarter the previous year.

The largest increase was at regional airports, led by Tromsø. Oslo Airport recorded a 5.2% increase compared to the same quarter last year, while Stavanger Airport experienced the weakest development, with growth of just 0.6%. Trondheim saw the highest growth among the four main airports, with an increase of 5.8%.

Avinor forecasts moderate traffic growth up to 57 million passengers by 2031. Strong growth is anticipated in international passenger traffic to Norway, while domestic traffic is expected to stabilize. New travel models and emerging customer segments affect the Group’s commercial revenues and necessitate changes in service offerings at airports. Avinor’s traffic and commercial revenues are exposed to traffic volume fluctuations caused both by reductions in airline capacity and declines in air travel demand from the market. Traffic and financial forecasts take into account, to the best of their ability, the market outlooks mentioned.

Various Important Investment Projects

There is careful monitoring and continuous focus on defining project portfolio priorities. Avinor is undergoing a significant transformation program with several ongoing investment projects. Notably, investments in modernizing baggage handling systems at Oslo Airport and government projects related to renewing airspace control and monitoring systems contribute to high investment levels. Additionally, two major projects involving the construction of new airports at Bodø and Mo i Rana are underway, along with upgrades at Tromsø, Evenes, and Andøya airports.

The changed security policy situation, with new requirements for overall national defense and particularly for the Norwegian Armed Forces, may lead to ongoing premise changes representing a risk of increased costs for development projects interacting with the military, concludes an official statement released today.