The operator added Pier A will be completed and new construction projects, such as the new baggage basement, will start.

Royal Schiphol Group has released its 2024 interim results, wile concurrently announcing the biggest investment plan in the airport’s history, to improve its infrastructure, working conditions and service towards passengers and airlines.

Between 2024 and 2029, Royal Schiphol Group has said it plans to invest €6bn over the next 5 years, buoyed by recent upturn in its operating results after a challenging few years.

Important parts of the airport infrastructure, including: Pier C; the baggage basement; climate-control systems; escalators; aircraft stands and taxiways, are due to undergo major maintenance or need renewing.

“Although it is encouraging to see that our financial results are improving and that our balance sheet is strong, our overall financial performance is not yet satisfactory,” said Robert Carsouw, CFO of Royal Schiphol Group.

Carsouw added: “Increasing operational costs and the investment portfolio put heavy pressure on our current and long-term cash flows. It is in everyone’s interest that Schiphol once again becomes a high-quality airport with robust infrastructure and excellent service to our passengers and airlines.

Our investment plans of 6 billion euros in the next five years are larger than ever before and fundamental to achieve this. Realizing our ambitions require a significant step-up and acceleration of our operational cash flows, without losing focus on our competitiveness.”

Resilience in the face of adversity

In the first half year of 2024 31.8 million passengers (+11%) flew to, from or via Amsterdam Airport Schiphol, the number of flights to and from Schiphol was 230,417 (+12%), and the total number of passengers at Royal Schiphol Group airports in the Netherlands increased by 9% to 36.1 million.

Concessions especially saw a meteoric 41.5% jump in revenue year-on-year (yoy) to €133m for H124,  mainly driven by the acquisition of Kappé in January 2024 and an increase in passenger numbers across the board.

Schiphol Group acquired 100% of the outstanding share capital in Kappé Nederland B.V. (including its subsidiaries) and Kappé Logistics B.V. (Kappé), and the transaction closed as of 18 January 2024.

In the first half year, Royal Schiphol Group’s underlying net result was €99m, though operational cashflow after investments rested at negative €188m.

Group revenue increased by €194m (22.7%), from €854m for the first half year of 2023 to €1.04bn for the first half year of 2024.

Royal Schiphol Group noted the higher revenue was mainly driven by a continued increase in passenger numbers and ATMs (Air Traffic Movements) compared to the first half year of 2023.

In the first six months of 2024, Schiphol invested €468 million euros in assets, an increase of 52% compared with the first half of 2023 (€308m). The most significant investments in the first half of 2024 were: the development Pier-A; the redevelopment of Lounge 1; the execution of a multi-year maintenance plan; and runway maintenace (including its Kaagbaan overhaul).

Concession challenges

Despite increases in passenger and ATMs, the average spend per passenger on retail airside at Amsterdam Airport Schiphol decreased by 9.8% from €13.56 in the first half year of 2023 to €12.23 in the first half year of 2024.

Pieter van Oord, CEO of Royal Schiphol Group, commented: “In my first three months, I am impressed by the resilience and passion of our colleagues. We are proud to once again fulfill our crucial role in connecting the Netherlands to the rest of the world. Every day our colleagues do their utmost for the passengers.

They make the difference, with a successful May and summer holiday as good examples. Unfortunately, they are not helped by the state of our infrastructure.”

CEO Pieter van Oord: “We need to restore the balance between the benefits and burdens of Schiphol. We are and will remain committed to reducing our noise impact on our surroundings and to improving the working conditions of all employees at our airport.”

Food & beverage spending per departing passenger decreased with 1.3% from €6.09 to €6.01, with this flat operating results primarily attributable to the ongoing redevelopment of Lounge 1, as well as a €103m (16.2%) increase in underlying operating expenses from €636m to €739m for H124.

Van Oord continued: “Our infrastructure is the foundation of our service, but is currently far from what we want to offer our passengers as a quality airport in the Netherlands. We have a major investment plan of 6 billion because it is crucial to bring back passenger satisfaction and top service to our airlines.

JVs and court rulings

Royal Schiphol Group enjoyed solid growth across several of its associates and joint ventures, especially Brisbane Airport and Hobart Airport, whose passenger numbers further increased in H124.

Hobart Airport saw a record-breaking number of passengers in the first three months of 2024, driven by strong demand during the Australian summer holiday period, while growth at Brisbane Airport was driven by a relative outperformance of the international market with new capacity and destinations added to the route network.

As such, the underlying share in results of associates and joint ventures increased by €4m to €14m in the first half year of 2024.

On 20 March 2024, the Dutch court gave the verdict in a lawsuit between Stichting Recht op Bescherming tegen Vlieghinder (a foundation advocating for the right to protection against noise nuisance from air traffic) and the Dutch State.

According to the judge, the Dutch government had not sufficiently protected the interests of people living near Schiphol in recent years, and together with Schiphol and other stakeholders, the Minister of Infrastructure is now working on legislation in response to this ruling.

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