Vienna Airport (VIE) welcomed 29.5 million passengers in 2023, marking a 24.7% increase over 2022 numbers and achieving 93.3% of its pre-pandemic performance in 2019.
Airport officials described 2023 as the "second best traffic year in the history" of VIE during a press briefing on January 19th.
The strong rebound builds on the gradual easing of COVID-19 travel restrictions and pent-up demand for air travel across Europe.
Management emphasized VIE’s operational excellence, highlighting its status as the most punctual hub in the Lufthansa Group.
Upbeat Forecasts for Passenger Traffic and Financials in 2024
Management expects 30 million passengers at VIE this year alongside consolidated net profits of €210 million on €970 million in revenues.
Officials also projected a 19.1% year-over-year increase in earnings before interest, taxes, depreciation, and amortization (EBITDA) to over €390 million in 2024.
“Revenue is expected to rise to €970 million, the consolidated net profit for the year should increase to at least €210 million, and EBITDA will be up to more than €390 million, which underlines the strong financial standing of the completely debt-free company,” said Günther Ofner, Member of the Management Board.
To support its growth, management plans to double capital expenditures over 2023 levels to over €200 million on quality and sustainability initiatives.
This includes moving ahead with the Southern Expansion of Terminal 3, which will add 70,000 square meters of space when completed in 2027.
Focused Growth Brings 700 New Airport Jobs
The upbeat forecasts come alongside a boom in on-site business projects that added 700 jobs at the airport in 2023.
Officials expect strong continued job growth in 2024 amidst the airport’s expansion.
However, management also noted headwinds from an upcoming European Union (EU) requirement to mix sustainable fuels starting in 2025.
“An action plan is urgently needed” to develop the production capacities required to meet the regulation, Ofner said.
Core Traffic Figures Show Strong Momentum
In addition to the 29.5 million overall passengers, the airport also reported a 28.2% increase in origin-and-destination (O&D) travelers to 22.8 million alongside a 14.3% rise in transfer passengers to 6.6 million.
These gains drove aircraft load factors up 2.8 percentage points to 80.5%, exceeding pre-pandemic levels.
The top destinations reflect a continued rebound in leisure and visiting friends and relatives (VFR) travel.
Antalya, Mallorca, and Barcelona topped the list of vacation spots while Bangkok, New York, and Taipei led long-haul routes.
Officials noted particular strength in traffic to Italy, Greece, and Turkey.
Flughafen Wien Group Adds International Reach
VIE’s increase outpaced the performance of the overall Flughafen Wien Group, which includes VIE and the company's investments in Malta and Kosice airports.
The group handled 38 million passengers, up 26.2% while surpassing 2019 levels by 6.7% at Malta Airport and 12% at Kosice Airport in Slovakia.
December Caps Year of Strong Monthly Gains
VIE’s December passenger count rose 13.9% year-over-year to 2.2 million travelers, capping off a year of strong month-over-month gains.
Officials cited the ongoing momentum as a positive sign for continued strong traffic development in early 2024.
With vaccination rates rising and travel demand still recovering from the pandemic, Vienna Airport appears poised to reach its lofty growth targets for 2024.
However, potential economic headwinds and the sustainability initiatives required by EU regulations pose challenges to maintaining the strong momentum.
New Terminal to Ease Future ETIAS Approval Rush
The expansion of Vienna Airport takes on added significance with the upcoming launch of the European Travel Information and Authorization System (ETIAS) visa waiver program in May 2025.
When launched, ETIAS will require pre-travel clearance for visitors from over 60 countries currently enjoying visa-free access to the EU.
The industry expects a flood of applications in 2024 and early 2025 as travelers seek approval ahead of planned 2025 summer vacations.
Vienna Looks to Attract Digital Nomads and Students
Besides improvements for leisure and business visitors, Vienna Airport’s growth supports government initiatives to woo location-flexible remote workers and international students.
The country is currently expanding its red-white-red card program to facilitate longer-term residency for qualified workers and entrepreneurs.
Students also enjoy streamlined immigration policies alongside world-class universities.
With its competitive economy, central European location, and expanding global connectivity through Vienna Airport, Austria stands positioned as an emerging immigration destination.
Vienna Airport Enters New Stage of Expansion
With passenger volumes nearing pre-pandemic levels, Vienna Airport enters 2024 positioned for a new stage of terminal expansions, job growth, and financial gains.
However, macroeconomic uncertainty and new EU sustainability rules pose hurdles to uncomplicated growth.
After completing repayment of all outstanding debt by year's end of 2023, management must maintain tight control of expenses while balancing service quality with sustainability initiatives over the coming years.
Their ability to master these challenges will determine if Vienna cements itself as one of Europe’s best airports.