The Avinor Group

Interim financial report 2nd quarter 2021

Fewer aircraft movements and passengers result in sharp decline in traffic revenues and commercial revenues.

Compared to the second quarter of 2020, air traffic measured in number of passengers increased by 68.2 per cent. Measured in aircraft movements, it increased by 39.9 per cent. For the half year, the level was 77 per cent lower than the level in 2019, measured in terms of the number of passengers, and reduced by 49.6 per cent compared to the first half of 2020.

-Towards the summer season 2021, there has been an increase in travel activity, as a result of increased vaccination rates and easing of entry restrictions. At the same time, an increase in infection pressure and the prevalence of more contagious viral mutations mean that there is still uncertainty about how traffic will develop in the long term,CEO Abraham Foss emphasizes.

The vaccination program, decisions by the authorities related to documentation requirements and infection control regulations, test regime and travel restrictions, as well as the airlines' outdoor planning, determines when traffic will stabilize at an increased level.

New contracts

As part of Avinor's own financing, efforts are being made to secure and develop commercial earnings. In June, it became clear that Travel Retail Norway and Airport Retail Norway have won tenders to operate duty-free at Avinor's airports in the period 2023-2027.

Avinor has awarded the contract for a new baggage facility at Oslo Airport to the supplier BEUMER Group. The total contract value, including an operating agreement of 25 years, is approximately NOK1.4 billion.

Development in Bodø and Helgeland

The pre-project for a new airport in Bodø has been completed and submitted to the state for quality assurance and decision-making. The new airport will be financed through contributions from the state, Bodø municipality and Avinor. The Ministry of Transport has received a report with external quality assurance (KS2) of Avinor's pre-project for the new airport.

In the revised national budget, a limit of NOK 3.3 billion has been entered for a new airport in Mo i Rana, including a local contribution of NOK 600 million. The Ministry of Transport has specified the conditions for the local contribution. Avinor is in the process of obtaining the necessary licenses and permits for the project, as well as mobilizing the building organization.

Return to self-funded business

In the second quarter of 2021, Avinor received a grant of 1.450 million NOK, which is recognised in its entirety as a grant from the state. In the same period last year, the grant was NOK 2,100 million.

 -Avinor's goal is to ensure that the Group can do without operating subsidies as quickly as possible and will continue its efforts to streamline operations to ensure the Group's financial strength in the longer term. Avinor's strategic priorities, including the level of operating costs and investments, will be adapted to a long-term situation picture for aviation, Foss concludes.

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Om The Avinor Group

Avinor is a wholly-owned state limited company under the Norwegian Ministry of Transport and Communications and is responsible for 44 state-owned airports.

Avinor has taken a leading role in reducing climate gas emissions from the aviation industry, including the development of electric aircrafts and supplying sustainable jet-biojetfuel.

Avinor provides safe and efficient travels for around 50 million passengers annually, half of which travel to and from Oslo Airport.

Over 3000 employees are responsible for planning, developing and operating an efficient airport and air navigation service. Avinor is financed via airport charges and commercial sales.  The air navigation services is organized as ​subsidiary wholly-owned by Avinor. Avinor's headquarter is in Oslo.

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Growth in overall air traffic but domestic traffic decreases10.5.2023 12:00:00 CEST | Pressemelding

Some 3.7 million passengers passed through Avinor’s airports in April. This represents an increase of two per cent compared with April last year. Nevertheless, passenger figures remain twelve per cent lower than in the same month in 2019, which was the last normal year prior to the pandemic. The number of aircraft movements in April of this year was one per cent lower than in the same month last year.

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