TAV Airports reports 15% duty free revenue increase in first half of 2021

By Andrew Pentol |

TAV Airports Holding Executive Board Member & CEO Sani Sener.

TAV Airports has reported a 15% increase in duty free revenue during the first half of 2021 to €5.9 million/US$ 7 million. Duty Free revenue in the same period last year amounted to €5.2 million/US$6.1 million.

The airport operator which manages 15 airports in six countries, including Ankara-Esenboga and Ismir-Adnan Menderes in Turkey and Tbilisi and Batoumi in Georgia, attributes the duty free revenue increase to a surge in spend per passenger.

During the first half of the year spend per passenger rose 17% to €9.1 from €7.8 during the previous corresponding period in 2020.

Total revenue in H1 2021 increased 10% to €155.9 million from €141.9 million in H1 2020, while net profit surged a whopping 115% to €23.2 million.

A member of Groupe ADP, TAV Airports served eight million domestic and 5.1 million international passengers in the first half of the year.

PRODUCTIVE FIRST QUARTER

TAV Airports Holding Executive Board Member & CEO Sani Sener said: “We had a very productive first quarter of 2021, during which we received two-year time extensions and rent deferrals for our Turkish airports from DHMI and booked a one-off gain of €109 million as a result of Tunisia debt restructuring.

“With the highest quarterly EBITDA since 2019, the second quarter of 2021 became operationally our best since. As the third quarter is seasonally the strongest in our business, we are looking forward to a solid next quarter with the continuation of quarantine-free travel availability using our airports.”

Total TAV Airports revenue rose 10% to €155.9 million in H1 2021.

Quarantine-free travel from Turkey to Germany became possible in the first week of June and from Turkey to Russia in the last week of June.

On 11 June, Poland also lifted quarantine restrictions for travellers from Turkey. Currently, TAV’s Turkish airports can welcome visitors from Russia, Germany, Ukraine and Polish. Visitors from these countries combined comprise 65% of the airport operator’s international passengers travelling to Turkey.

Duty Free spend per passenger increased 17% to €9.1 in the first half of 2021 compared to €7.8 in the previous corresponding period last year.

Sener continued: “North Macedonia entered the European Union’s green list in June and quarantine-free travel also became possible for many Georgian markets.

“With these developments, there was a notable pick-up in our passenger numbers in June, the full effect of which we expect to see from July onwards.”

RECOVERY PREDICTION

The recovery level in the first half of July was ‘significantly above’ June and in line with TAV’s expectations. According to preliminary July numbers, Antalya served 59% of international passengers in the first 20 days compared to the same period in July 2019 (Preliminary July partial results may differ significantly from final reported pax for the complete month).

Sener remarked: “We have always told our investors that recovery in our airports would be very quick once restrictions were lifted, which is what we are witnessing. According to Eurocontrol numbers, among all European countries, Turkey has recovered the fastest compared to July 2019 in terms of daily flights.

TAV Airports manages 15 airports in six countries, including Ankara-Esenboga (pictured) and Ismir-Adnan Menderes in Turkey.

“With these favourable tailwinds behind our operations, we had revenue of €95m in the second quarter of 2021 which was the highest quarterly revenue since the start of the pandemic.”

Reflecting on the early impact of the pandemic and how the company came to terms with it, Sener recalled: “Our first priority was to protect the health of our employees and our guests. With working from home and best-in-class precautions we managed this well.

“As we are getting ready to gradually normalise, I would like to thank all our employees, shareholders and business partners for their hard-work and continuous support during these historically challenging times.”

ATÜ Duty Free runs the duty free programme at Tbilisi International Airport, part of the TAV Airports portfolio.

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