Passenger charge reductions weighed on revenue as the airport revised its approach to capacity expansion.
By Dimitris Zopounidis
Athens International Airport (AIA) recorded further passenger growth in the first half of 2026, alongside lower revenue and profitability. The results, released on 9 September, reflect the effect of temporary passenger charge reductions on aeronautical income, together with higher operating expenditure. They also introduce a revised approach to airport expansion, with investment phased to limit disruption and preserve options for additional capacity.
Passenger traffic reached approximately 15.8 million, up 4.5% compared with the first half of 2025. Revenue and other income, excluding construction services associated with the expansion programme, declined by 2.8% to €299.6 million. Adjusted EBITDA fell by 7.6% to €168.5 million, with a margin of 56.2%, while profit after tax decreased by 11.6% to €81.4 million.
| Indicator | H1 2025 | H1 2026 | Change |
|---|---|---|---|
| Passengers, million | 15.1 | 15.8 | +4.5% |
| Revenue and other income, €m | 308.2 | 299.6 | −2.8% |
| Aeronautical revenue, €m | 230.5 | 219.2 | −4.9% |
| Non-aeronautical revenue, €m | 77.7 | 80.4 | +3.5% |
| Operating expenditure, €m | 118.4 | 123.7 | +4.4% |
| Adjusted EBITDA, €m | 182.3 | 168.5 | −7.6% |
| Adjusted EBITDA margin | 59.2% | 56.2% | −2.9 pp |
| Profit after tax, €m | 92.2 | 81.4 | −11.6% |
Source: AIA H1 2026 results. Figures and changes as reported; rounding may affect differences. Revenue and operating expenditure exclude IFRIC 12 construction services. Adjusted EBITDA includes the €7.5 million fixed concession fee for the six-month period. pp = percentage points.
The main explanation for the revenue decline is the temporary 30% discount on the Passenger Terminal Facility Charge, applied from 1 October 2025 to 30 April 2026. Aeronautical revenue consequently fell to €219.2 million. Combining the reported revenue figures with passenger growth implies an approximately 7% decline in total revenue per passenger, calculated from the published data. Higher traffic therefore coincided with lower average income per passenger during the period.
This outcome needs to be read within the airport’s regulatory arrangements. AIA operates under a dual-till framework, separating regulated aeronautical activities from non-aeronautical business. As described in the results, aeronautical profitability is subject to a maximum cumulative after-tax return based on 15% of the relevant regulated capital, with EU inflation adjustments and a mechanism for carrying forward unearned permitted returns. The company linked the charge discount to aligning aeronautical profitability with this framework. The return ceiling applies to regulated capital rather than to revenue, and non-aeronautical activities are outside this restriction.
Traffic growth also moderated during the half-year. Following an 8.1% increase in the first quarter, growth slowed to 2.2% in the second. AIA attributed the slowdown primarily to disruption associated with the conflict in the Middle East. Across the six months, domestic traffic increased by 5.1% and international traffic by 4.2%. International traffic declined by 0.9% in April, which the company mainly associated with suspended Middle East services, before returning to growth in the following months.
Non-aeronautical activities provided a substantial share of earnings. Revenue increased by 3.5% to €80.4 million, while the segment generated €44.1 million in profit after tax. It represented 26.8% of total revenue but 54.1% of net profit, according to the company’s segment allocation. Commercial activities contributed €52.2 million in revenue, up 4.2%, supported by food and beverage outlets, specialty retail and improved concession terms.
The effect of construction on commercial income is already visible in parking. Revenue from vehicle parking declined by 4.5% to €11.1 million, mainly because the closure of the P1 short-stay car park reduced available capacity during construction of the multistorey facility. Additional Economy parking capacity partly mitigated the loss. This provides a concrete example of the revenue that can be affected while an airport builds new infrastructure.
Operating expenditure rose by 4.4% to €123.7 million, broadly matching passenger growth, although individual cost categories moved differently. Third-party fees and expenses increased by 15.0% to €50.4 million, reflecting additional operating requirements and cost pressures. Utility expenditure fell by 37.3% to €4.5 million, which AIA associated with energy-saving initiatives under its Route 2025 programme. Lower utility costs and a reduced variable concession fee partly offset expenditure increases elsewhere.
Against this background, the board has changed the implementation approach for the expansion programme. The existing plan for capacity of 40 million passengers annually remains the reference scheme. AIA will assess alternative configurations, including options beyond that capacity, with any modification conditional on demonstrated strategic and economic benefits, technical compliance and the necessary approvals.
The immediate actions include discontinuing the current Early Contractor Involvement tender process and launching an open construction tender for the first phase of the 40 million passenger programme. This phase covers the South Wing of the Main Terminal Building, expansion of the Satellite Terminal Building and associated works. A separate tender for the initial phase of the northern terminal expansion is planned for the second half of 2027. The North-West Apron, multistorey car park and new VIP terminal projects continue, with completion scheduled for 2027.
AIA expects capital expenditure for capacity expansion through the end of 2030 to total €950 million at 2026 prices. This estimate has a defined time horizon and should not be treated as the final cost of every potential development beyond 40 million passengers. The revised approach retains flexibility over subsequent phases while advancing projects intended to address nearer-term capacity needs.
The commercial implications are significant. AIA cited passenger volumes, Entry/Exit System implementation, air traffic control constraints and construction challenges among the reasons for reconsidering delivery. Its current planning envisages approximately 60% more commercial space by 2030–2031. Given the contribution of non-aeronautical activities to net profit, protecting existing commercial operations during construction has a direct financial rationale. The parking results already illustrate why the sequence of works matters.
The financing position also requires attention to timing. AIA issued a €500 million senior unsecured bond on 24 June 2026, with a seven-year maturity and a 3.75% annual coupon. Cash and cash equivalents reached €825.5 million at the end of June, largely reflecting the bond proceeds. On 31 July, €423.2 million was used to refinance existing borrowing. The June cash balance therefore included funds awaiting refinancing, which limits its usefulness as a measure of additional investment capacity.
Net debt stood at €690.8 million on 30 June, compared with €614.0 million at the end of 2025. The ratio of net debt to adjusted EBITDA for the preceding twelve months increased from 1.6 to 1.8 times. The second year of the scrip dividend programme also added €83.25 million to aeronautical capital. Management stated that existing financing arrangements and the dividend reinvestment programme cover funding needs through 2030.
Cash generation presents a further distinction. Net cash from operating activities declined to €83.3 million from €92.0 million. AIA’s alternative free cash flow measure increased to €127.5 million from €92.3 million, reflecting lower capital expenditure of €40.9 million, compared with €90.0 million a year earlier. That measure deducts capital expenditure from adjusted EBITDA; it differs from operating cash flow and does not incorporate working-capital movements, interest and tax payments.
For the full year, AIA raised its passenger growth forecast from a low to a mid-single-digit rate and maintained guidance for approximately €200 million in net profit. Management expects revenue per passenger from aeronautical charges and the airport development fund to remain broadly stable in 2026. It also expects broadly stable non-aeronautical revenue per passenger. These remain forecasts. The next tender results and approved designs will provide firmer evidence of the capacity to be delivered within the €950 million investment envelope through 2030.
Source: Athens International Airport S.A., H1 2026 Financial Results, 9 September 2026. Revenue per passenger change is calculated from reported revenue and traffic growth.
