It will not work without debt. Prague Airport wants a general loan of up to 7 billion
The company’s representatives believe that they will achieve the fulfillment of financing conditions, relying at the same time on their long-term financial stability, previous management steps, their low credit risk credit rating at Aa3 with stable provision and previous year’s operating and economic results. rust. For example, in 2019 we have a profit of around three billion crowns. Last year, the airport has not yet announced the economic results, which were already marked by the crisis.
In addition to the company’s existing commitments, the airport also wants to use its money to finance its further sustainable development. Therefore, it wants to follow the so-called elements of the ESG, ie the principle of sustainable business, for the prepared projects, which, according to the airport, is also flourishing domestic banks. “Prague Airport can have its long-term active approach not only to sustainable development, but also to ecology or social issues. In addition, in combination with the best rating of the Moody’s Investors Service agency for a European airport, this will give us very good conditions and more advantageous financing, ”said Václav Řehoř, Chairman of the Board of Directors of Prague Airport.
The airport will thus provide information services to banks. In addition to basic reports on profit and management, it will also contain reports on, for example, the airport’s approach to ecology or socially sustainable business and other projects.
“The whole world is moving to the fact that investors and banks are already requiring companies to do these ESG reports. This actually pushes companies to create a better environment for life. And we also have to do that, “added Řehoř. For example, Prague Airport is part of the Destination 2050 sustainability initiative, which aims at carbon-neutral aviation in Europe by 2050.
Hard effects of covid
Air traffic has had to reduce the coronavirus crisis for more than a year. Last year, after years of record passenger numbers, Prague Airport lost 79 percent of its passengers compared to 2019. In total, it handled 3.66 million, which means that in the last 25 years.
The airport responded to the crisis at the beginning, when they began to review their costs. For example, limited sub-infrastructure at terminals, laid off part of the staff, saved on energy materials, labor costs and other areas. “On the other hand, we were counting on a crisis and we were ready for it. We have had record years behind us, we have saved up, we have acted responsibly, thanks to which we were able to finance the operation of the airport from our own resources last year for nine months of decline. We did not reach for an external source in the form of a loan until December, “said Řehoř.
The slowdown continues so far this year as well, with a year-on-year decline of 90 percent to 251,000 checked-in passengers in the quarter. According to current expectations, the situation should gradually improve during the summer.