SWEDEN. Passenger traffic at Swedish airports rose +7% in April from the same month last year, Dagens Industri has reported, citing figures from Luftfartsverket (LFV). The result represents a turnaround for the Sweden’s aviation authority which has seen passenger traffic decline -14% overall in the past two years.
Stockholm Arlanda Airport, north of the capital, saw the largest recovery, with traffic up +10% year-on-year last month.
During the first three months of 2004, the total number of passengers at LFV airports increased by +1%. The increase in passenger numbers on international routes was clearly visible during the latter part of 2003 and has accelerated, according to LFV. However, domestic travel has not kept pace as the number of passengers on domestic flights decreased by -3% during the first three months of 2004.
Arlanda, which represents around 50% of Sweden’s air traffic, will swing to a profit of at least SEK50 million (US$6.7 million) this year, compared with a SEK100 million (US$13.4 million) loss 2003, Arlanda Airport director Kerstin Lindberg Goeransson said, according to the paper. “Before the end of the year, we hope to get further direct routes to the US and Asia,” she said.
Luftfartsverket announced losses of SEK16 million (US$2.1 million) for the first three months of 2004. This was less than budgeted and less than last year’s result of SEK5 million for the same period. LFV now expects 2004 as a whole to be a profitable year.
Deterioration in profit compared with 2003 has been mainly due to the increased service and capital costs of new installations that have been brought into service, mainly at Arlanda Airport, according to LFV’s director general Lars Rekke. LFV’s current action plan is progressing as planned and has so far achieved more than SEK500 million (US$66.8 million) in improved earnings.
“Traffic development at our airports varies greatly,” said Lars Rekke. “Bromma and Arlanda recorded a combined increase of +3% in the first quarter, whilst passenger figures at the smaller airports were down by between -15% and -20%.”
LFV investments for the first quarter of 2004 were more than halved and amounted to SEK155 million (US$20.7 million) compared with SEK313 million (US$41.8 million) for the same three months in 2003. LFV’s major projects at Arlanda and within the Air Navigation Services are nearly completed therefore the organisation expects to maintain a lower investment level in the future.
Meanwhile a review of Jönköping, Karlstad and Norrköping airports continues. They form the basis of an in-depth study of Luftfartsverkets’ airport structure, whilst further cost-cutting action at Kalmar, Ronneby, Sundsvall-Härnösand and Ängelholm airports, LFV said, will not be necessary.
Two main criteria have decided the choice of these airports. The first is that these three airports are unprofitable even after the inclusion of the positive effects experienced by, for example Stockholm Arlanda Airport, in the form of the LFV airport system. The second is the overall cost, this includes travel time for the traveller, which is higher by air than car or train. LFV says weakened economic activity in the country has contributed to the negative development of air travel.
LFV initiated a review of its airport structure in the summer of 2003. This review is looking into airports’ development prospects, their national economic value as well as the commercial aspects. Establishing passenger travel practices and willingness to pay also formed part of the review.
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