The new law is expected to materially reduce the MAG claimed by AENA.

Dufry Group’s duty free and duty paid shops at 26 airports in Spain are expected to benefit after a legal change modifies the concession fees paid to Spanish airport operator AENA.

Spain’s Congress passed a law yesterday (23 September) that alters how minimum annual guarantees (MAGs) are calculated across all of the country’s airports by linking them to actual passenger numbers.

Under the new law, MAGs on contracts are not owed for the period concerning 15 March 2020 to 20 June 2020 and will be proportionally reduced from 21 June 2020 by comparing the lower volume of passengers at Spain’s airports with 2019 passenger levels.

The amendment will last until traveller volumes return to 2019 levels in a move ‘expected to have a positive financial impact on Dufry’, said the global travel retailer in a statement.

Versus 2019, passenger numbers at Spanish airports have dropped by around 72% in 2020 and by around 68% in August year-to-date in 2021.

“The P&L impact in 2021 and going forward will depend on the recovery of the passenger numbers at the Spanish airports,” the Dufry statement added. “The specific accounting treatment under IFRS 16 and its timing as well as the impact on the cash flow are currently being reviewed.”

As reported, Dufry renewed its concession agreements with the 26 airports under the auspices of AENA two years ago.

TRBusiness has reached out to AENA and Dufry for further comment.