Increased Traffic and Revenues

Ljubljana Airport is satisfied with its preliminary non-consolidated accounting statements for 2005. In comparison to the previous year, 2005 concluded with a 16 percent increase in passenger traffic, 14 percent higher operating revenues and 25 percent higher operating results.

Traffic at Ljubljana Airport increased in 2005. The number of passengers carried increased by 16 percent, which is the result of several years of effort and marketing campaigns. The year ended with 1,218,896 passengers served and 37,767 aircraft takeoffs and landings. One of Ljubljana Airports strategic goals includes increasing the share of passengers carried by foreign airlines in the coming years. In 2004, 20 percent of passengers were carried by foreign airlines, and in 2005 this share increased to 30 percent. In comparison to 2004, in 2005 two percent less freight was transported. The decrease in cargo traffic stopped in the second half of the year and the trend took an upward turn.
Operating revenues followed the growth in the number of passengers carried and in comparison to 2004 were 14 percent higher (surpassing the annual plan by 5 percent). Operating expenses were 10 percent higher than last year (2 percent below the annual plan). The operating result amounted to SIT 1.957 billion and was 25 percent higher than last year (and 23 percent higher than planned). Adding financial and extraordinary income to and subtracting financial and extraordinary expenses from the operating results, the operating result before taxes was SIT 2.462 billion, which is 7 percent more than last year (and exceeds the annual plan by 9 percent). The tax on profits for 2005 amounted to SIT 493 million, which was 87 percent higher in comparison with the previous year, and was also expressed in the significant growth in the actual tax rate on profits, which amounted to 20 percent in 2005, compared to 11 percent in 2004. The reason for this is a lower amount of applicable tax benefits for investment in tangible fixed assets and intangible long-term assets in 2005 in comparison to 2004, which derived primarily from lower investments in real estate and the legally defined lower rate of these benefits. The net operating result in 2005 amounted to SIT 1.969 billion and is a good 3 percent lower in comparison to 2004, which is the result of a greater tax burden on profits (and exceeded the annual plan by 6 percent).
The average AELG share price in 2005 was 24 percent higher than in 2004. There was a 30 percent increase in trading of Ljubljana Airport shares in comparison to the previous year.

Notable events last year at Ljubljana Airport include the completion of construction of the parking garage with its business wing, the purchase of 8 ha of land for further airport expansion and the adoption of two spatial implementation acts that provide the conditions for future development of airport and airport-related programmes. These include a site plan for rerouting the main road and the spatial planning conditions for the area adjacent to the airport.
Ljubljana Airport is planning moderate growth in 2006. There are plans for a 6 percent increase in aircraft takeoffs and landings, a 5 percent increase in passenger traffic, a 4 percent increase in freight and a 4 percent higher operating result. Much attention will be focused on realizing the investment plan. The beginning of construction for the first phase of the new passenger terminal and the expansion and modernization of manoeuvring areas will be a large financial investment. A second important project is the beginning of preparations for the construction of a business logistics centre on a 20-ha area for the development of tourism, marketing, warehousing, production and commercial offices connected with airport activities.

Brnik, 1 March 2006