Pandemic: Second Loss-Making Year for Budapest Airport

EUR 25 million more in revenues and 22 million EUR less in losses – this is a concise summary of Budapest Airport’s financial year 2021. Despite a 20% increase in passenger traffic last year and a 36% increase in air cargo volume compared to 2020, the company operating Ferenc Liszt International Airport ended the second year of the coronavirus pandemic with a significant loss.

According to a statement by the company, it closed the 2021 financial year with net revenues of EUR 143 million and a loss of EUR 87.6 million.

The report notes that 2021 was another disastrous year for the aviation industry, but marginally better than the first year of the pandemic, 2020. Last year, European trends in passenger traffic were in line with expectations, as the recovery from the severe crisis caused by the coronavirus pandemic began in the second half of the year. Airline capacities and, in parallel, traffic at airports recovered steadily, but passenger numbers were still far below 2019 levels. In the air cargo segment, however, cargo volumes reached unprecedented heights, thanks to the speed, reliability and safety of this mode of transport.

The start of the recovery is also reflected in Budapest Airport’s financial results; the company posted a 21% increase in net revenue to EUR 143.3 million compared to the previous year, ending last year with an overall 20% lower loss of EUR 87.6 million. Budapest Airport continued to make up some of this major revenue shortfall caused by the decline in passenger numbers with record cargo traffic and stable property revenues from tenants whose operations were not influenced by passenger traffic, such as aircraft maintenance companies and integrators. This demonstrated the strength and the significance of the diversification strategy pursued by the airport in recent years.

However, it is important to emphasize that the figures continue to reflect the challenge that the second year of the pandemic posed for aviation. Despite this, Budapest Airport spent EUR 36.6 million on developments last year, bringing the total investments in capacity expansion, infrastructure and sustainability over the past three years to more than 200 million EUR, and increased wages by an average of 13% from March 2022. In parallel, Budapest Airport also commenced preparations for the reopening of Terminal 1 and the construction of the new Terminal 3. The total value of the two investments will exceed EUR 1 billion.