Flughafen Wien AG
Solid November traffic figures underpin sound operations
Topic: Yesterday, FWAG released Nov '23 traffic results in line with seasonality and our estimates.
In November, 2.67m passengers (+14% yoy; 92% of 2019 levels) were handled by FWAG, in line with seasonality and our estimates (eNuW: 2.63m). While the 8pp gap to 2019 levels can be explained by a strong base effect, (exceptional growth of low cost carriers during winter 2019/20), the company can nevertheless show solid double-digit growth compared to Nov '22, which experienced a strong recovery thanks to decreasing COVID measures in Europe.
With 35.2m passengers handled YTD, the old guidance (Jan '23) of 32-34m passengers has already been overachieved and the renewed guidance (Aug '23) of 36.5m passengers seems to be conversative as well. Clearly, the better than expected COVID recovery lead to strong momentum during the summer, but also the recently published winter flight plan should bode well for the ongoing winter traffic. In sum, this should lead to 37.8m passengers for FY '23e (i.e., 2.6m in Dec '23e), according to our estimates.
The old financial guidance from Jan '23 of € 830m sales, € 325m EBITDA and € 150m net income (before minorities) was renewed to "significantly more" in Aug '23 and has been overachieved per 9M, but has not been specified since. Our estimates of € 887m sales, € 387m EBITDA and € 185m net income are based on a conservative view on Q4'23e and should therefore leave some upside.
For FY'24e we expect the passenger growth momentum to slow down (eNuW: 38.2m passengers, +1.2% yoy) to normal levels, due to macro uncertainties and potential heat up of conflicts, which would impact air travel, but also the strong base effect. On the other hand, the statutory passenger and aircraft fees (c. 40% of sales) will increase by 9.7% as of Jan '24, which should lead to solid top-line growth of 9% yoy even with flat passenger volumes.
In sum, we continue to like FWAG's operating performance, but see limited upside to the share price at current levels. Hence, we reiterate our HOLD recommendation with unchanged PT of € 46.00, based on FCFY'24e.