EARNINGS TREND

The CAA’s Profit for 2005

The CAA’s profit for 2005 came to 22.2 million euros. The profit target set for the CAA by the Council of State was 19.1 million euros. The actual profit also far exceeded that of the previous year (15.0 million euros). This excellent result was mainly founded on greater than expected growth in international traffic as well as positive developments in the CAA’s other business activities. The higher profit than 2004 is also explained, in addition to the above, by the modest increase in operating costs.

The Civil Aviation Administration’s turnover for 2005 was 243.1 million euros, amounting to an increase of 9.2 million euros over the previous year. Most of this increase, 5.1 million euros, came from a rise in traffic earnings, while the rest, 4.1 million euros, came from growth in commercial earnings. The growth in traffic earnings is explained almost entirely by the rise in the volume of international air traffic. Almost 2 million euros of the extra commercial earnings too, can be attributed to the increase in demand for services resulting from the extra passenger numbers.

Actual operating expenses for 2005 came to 180.7 million euros. Operating costs were slightly below budget (181.5 million euros) as well as being lower than those of 2004 (181.0 million euros). The decrease in operating expenses compared to 2004 was primarily explained by the fact that the costs for 2004 contained a 5.7 million euro obligatory reserve which in itself raised the overall operating costs for 2004. Discounting the cost reserve, the growth in operating costs for 2005 came to 5.4 million euros (3.1 %).

Although the rise in personnel costs has altogether been moderate, cost pressures have increased both in security control and airport maintenance. The biggest rises in operating expenses were caused by the enormous rise in fuel prices as well as the increased use of anti-skid chemicals necessary because of the inclement winter season.

CAA Group Result for 2005

Turnover for the CAA Group in 2005 came to 258.6 million euros (246.0 million euros in 2004). Turnover rose by 5.1 %. Group operating expenses amounted to 188.2 million euros (184.3 million euros), a rise over the previous year of 3.9 million euros. Group profit reached 25.8 million euros, an improvement of 11.9 million euros over 2004 (13.9 million euros). Changes in Group profit arose mainly from CAA profits.