FRANCE. Groupe ADP is forecasting a fall of -55-65% in passenger traffic year-on-year across its network from April to December, and a revenue hit of €2 billion to €2.5 billion in the same period.
The company updated the market on its latest assumptions as it revealed Q1 revenues to the end of March (see below). The figures above include traffic at the two major Paris airports, TAV Airports and Airport International Group (in Jordan).
As reported, at Paris Charles de Gaulle, since 30 March only terminals A, C, 2E Hall K and 2F are open for commercial flights. At Paris Orly, commercial traffic is temporarily suspended since 1 April. Only three airports operated by TAV Airports remain open to commercial flights, although only partially (Ankara, Antalya and Izmir). The other airports of the group, except Liège airport, are either closed or subject to restrictions.
Groupe ADP said it is aiming to stabilise the financial situation of the group by reducing current operating expenses for 2020 by €270 million.
The company also said that rental and leasing expenses for unoccupied premises in the closed terminals will not be due. It added: “Groupe ADP will take into consideration the difficulties endured by its customers to adapt the payment conditions applicable to them.”
In Q1, retail & services revenue climbed by +19.8% but this was due to the impact of a full consolidation (since April 2019) of Société de Distribution Aéroportuaire and of Relay@ADP figures in Groupe ADP revenues. Excluding this consolidation, the revenue from this segment would have fallen by -16.7%. Revenue per passenger in airside shops was up by +3.5%, at €20.
The Q1 trend for retail featured three distinct periods, said Groupe ADP:
– January 2020 with “intense growth, notably marked with an exceptional performance of luxury”;
– February 2020 marked by the first signs of crisis and notably the strong decline in flights with China;
– March 2020 in sharp decline with a big decline in traffic and the closure of non-essential retailers from 15 March onwards.
Consolidated revenue at group level was down by -5.6% to €911 million (and down by -15.1% excluding full consolidation of Société de Distribution Aéroportuaire and of Relay@ADP, as noted above).
Passenger traffic at the group fell by -10.1% to 44.5 million. Paris Aéroport traffic (Paris Charles de Gaulle and Paris Orly) fell by -20.9% to 18.8 million passengers.
Aéroports de Paris SA – Groupe ADP Chairman and CEO Augustin de Romanet said: “This first quarter has been marked by the Covid-19 pandemic, the scale and effects of which have continuously amplified. In this context, Groupe ADP took full measure of the crisis and its priorities have been to ensure the safety of its employees and customers. Furthermore, the group quickly engaged an important operational and financial optimisation plan in order to stabilize its financial situation but also to take account the situation of its airlines customers and its providers.
“All the group’s activities having been heavily affected in March, [and] the decline in traffic has amplified in April and [will remain] at a low level in May. A gradual recovery is expected from June onwards. The key to this recovery will be to restore confidence among travellers, mainly by reassuring them on the sanitary conditions which will be ensured on departure, on board and on arrival.
“This is a matter involving all of the aviation sector, which thus should focus on restoring in a coordinated manner this confidence ecosystem. I would like to pay tribute to the commitment and spirit of responsibility of the employees of the group during these challenging times.”
