15 November 2022
Solid performance driven by the recovery of air traffic volumes and growth in the non-regulated market
Rome, 15 November 2022 - The Board of Directors of ENAV S.p.A., in their meeting held today under the chairmanship of Francesca Isgrò, approved the Interim Financial Report as at 30 September 2022.
The first nine months of 2022 were characterised by a marked recovery in air traffic, especially in the summer season. In Italy, the overall result, compared to the corresponding period of 2021, for the en-route and terminal service units, showed an increase of over 86%. The growth of the Italian air traffic was in line with the European average.
The Chief Executive Officer Paolo Simioni commented: We can say that the nine months 2022 results confirm 2022 as the year of recovery for our sector. Air traffic in Italy in the summer season returned to pre-pandemic levels and we expect to close the year with approximately 96% of 2019 volumes. The Company is continuing with investments to modernise the airspace infrastructure, always ensuring safety, punctuality, and quality of service. The strategy we have implemented in order to grow in the non-regulated market is providing positive results. The work order in Qatar is the high spot for 2022 and our technicians are now ready to support the Qatari staff in the management of the airspace during the World Cup. Point of pride for ENAV and for Italy.
En-route traffic, expressed in service units, increased by 86.6% in the first nine months of 2022 compared to the same period in 2021. Domestic air traffic (flights with departure and arrival at Italian airports) recorded an increase in service units of 52.5%, whereas the service units for international air traffic (flights departing from or arriving at a foreign airport) recorded an increase of 119.8%, while the overflight (flights crossing Italian airspace without landing) grew by 86.9%.
Terminal traffic in the firt nine months of 2022 grew by 86.1%, in terms of service units, compared to the corresponding period of 2021. The increase in traffic volumes was common throughout Italy. Charging zone 1, relating to Rome Fiumicino, saw an increase of 125.6% compared to the same period of 2021. Charging zone 2, represented by the airports of Milan Malpensa, Milan Linate, Venice Tessera and Bergamo Orio al Serio recorded an increase in service units of 84.6% in the first nine months of 2022. Charging zone 3, which includes all the other national airports, recorded a 76.4% increase in service units.
Total consolidated revenues, in the first nine months of 2022, amounted to €714.4 million, an increase of 21.6% compared to the same period in the previous year, mainly as a result of the strong recovery in the number of flights, especially during the summer season. Revenues from operations increased by 106.5% and amounted to €705.8 million.
The balance component had a negative impact of €16.2 million due to the trend of partial “returns” to carriers, having generated more service units in the final reckoning than had been planned in the performance plan. It should also be emphasised that the balance component between 2021 and 2022 is not fully comparable, because in 2021 the balance was determined by applying the provisions for the 2020-2021 combined-period following EU Regulation 2020/1627 dated 3 November 2020, and in compliance with the efficiency percentage targets provided with the Decision 2021/891. In 2022, on the other hand, there was a return to traditional tariff regulation based on the traffic risk mechanism.
Revenues from the non-regulated market reached €26.5 million, an increase of €6.1 million (+30%) compared to the first nine months of 2021, mainly due to revenues related to support activities to the Qatar Civil Aviation Authority for airspace management during the FIFA World Cup 2022, the modernisation and installation activities of systems at Libyan airports as well as checks on radio assistance systems installed at some airports in Greece and Qatar.
Total operating costs, in the first nine months of 2022, amounted to €494.6 million, an increase of 12.2% compared to 30 September 2021, mainly due to increased activities related to the recovery of air traffic. Personnel costs amounted to €400.9 million, an increase of 10.5% compared to the same period of last year. In particular, the fixed portion of remuneration remained substantially in line with 2021 while the variable portion recorded an increase of 67.4% mainly attributable to the increase in overtime for operational personnel to manage the increase in traffic volumes, especially during the summer season.
Consolidated EBITDA amounted to €219.8 million in the first nine months of the year, up by 49.7% compared to the same period of 2021. EBITDA margin of 30.8%.
Consolidated EBIT amounted to €131.2 million with an EBIT margin of 18.4%.
The net consolidated result in the first nine months of 2022 stood at €91.8 million, an increase of approximately €50 million compared to 30 September 2021.
Net financial debt at 30 September 2022 stood at €429 million, out of which €253 million non-current, showing an improvement of €54.6 million compared to the figure recorded at 31 December 2021. The reduction in net financial debt is mainly due to the effect of income and payment dynamics related to day-by-day operations which produced a positive cash flow, directly related to the recovery of air transport activities which produced higher inflows from the Parent Company’s core business.
the mechanism that enables ENAV to partially recover from or partially return to carriers, the lost proceeds from Tariffs resulting from the application of EU regulations and national legislation.
For the year 2022, the Company expects to return to approximately 96% of the en-route service units of 2019, the last pre-pandemic year, and to record a total revenue increase of approximately 15% year-on-year, also including a growth of approximately 15% in the revenues from the non-regulated market. EBITDA is expected to show an increase of approximately 25% year-on-year. Investments in 2022 will be approximately €90 million.