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Oslo Airport, Gardermoen (photo: Avinor)

Norway’s airports swing back to profit

Avinor reverses a negative first-half result. And there’s also news about Haugesund, Fagernes and Oslo airports.

More passengers and more non-aviation income contributed to a rise of 3.4% in Norwegian airport operator Avinor’s revenues in the second quarter, leading to profit after tax for the first six months of NOK 183 million (€18.8 million).

The group’s operating income in the second quarter amounted to a little over NOK 3 billion, compared with NOK 2.95 billion for the same period in 2017.

The NOK 183 million profit for the first half of the year compares to minus NOK 230 million for the corresponding period in 2017. The positive swing was primarily due to high one-off costs in the second quarter of 2017, Avinor explained.

“For the first half of the year, Avinor delivered secure and good operations, while at the same time continuing to reduce costs and increase operating revenues,” said CEO Dag Falk-Petersen. “This provides a solid base for the well-functioning aviation system in Norway.”

The savings from the group’s “modernisation programme” are exceeding the targets, Avinor says, with the cost savings target being NOK 600 million per year from 2018 in relation to the previous long-term plan from 2013.

Although the goals are expected to be achieved “by a good margin”, work continues on cost-reducing measures and efficient operations.

Airport outsourcing
Avinor highlights some other recent news. It has been decided, for example, that the airport development company Lufthavnutbygging AS and Widerøe Ground Handling AS will be responsible for the operation of Haugesund Airport for 20 years from March 2019 via a newly established company.

Meanwhile, operations at Fagernes Airport ceased on July 1, as no companies came forward to take over its operations. However, as requested by the Ministry of Transport and Communications, Avinor will ensure it can be operated commercially for the next three years, such as through sporting aviation.

And, as a result of the increased volume of traffic to and from non-Schengen destinations, a decision has been made to expand terminal capacity at Oslo Airport. The project entails a 28,000sqm extension of the east pier and new aircraft stands. The target completion date is the first half of 2022.

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