Malta International Airport plc (MIA) on Wednesday (today) announced that it has recorded €62.2 million in pre-tax profit in 2023, as air travel demand continues to increase.

The results were published in MIA’s Annual Report for 2023, closing the year with a record 7.8 million passenger movements, a rise of 33.4 per cent in traffic over 2022, in line with MIA’s expectations. Additionally, the airport stated that it also handled 27.3 per cent more aircraft movements in 2023 than in the previous year, and also had a 29.1 per cent increase in seat capacity.

Malta’s tourism and hospitality industries have benefitted from pent-up demand following the COVID-19 pandemic, with surges in tourist arrivals, not just via air travel, but also through cruise ships. This prompted Tony Zahra, President of the Malta Hotels and Restaurants Association (MHRA) to note that the tourism sector's situation in 2023 was "better than anticipated."

This was also evident through MIA’s results, as at group level, its total revenue amounted to €120.2 million, an increase of 36.6 per cent or €32.2 million when compared to 2022’s results.

The aviation segment was the primary contributor, accounting for 68.5 per cent of revenue, with the airport greatly benefitting from the high demand in air travel. Revenue from the retail and property segment totalled €37.6 million, 27.7 per cent more than in 2022, while the remaining portion of revenue came from other activities.

On the other hand, staff costs were also on the rise, going up to €14.3 million from 2022’s €10.1 million. MIA stated that this was largely a result of the growth in headcount required to meet operational needs and to deliver services to the increased number of passengers. This was amplified further following the end of Government’s Wage Supplement Scheme in 2022, together with salary increases.

In fact, MIA employed an average of 417 employees in 2023, translating to an increase of 17.6 per cent over the previous year. As at the end of the year, the total headcount stood at 435. Employee turnover rate for MIA stood at 11.9 per cent, a marginal improvement when compared to 2022 (12.1 per cent).

Other operating expenses also increased, rising by 33.8 per cent to €30.7 million. Passenger-related costs, namely the costs for the provision of customer assistance, passenger screening and cleaning services, increased with the traffic, while increases in costs for VIP and lounge services in 2023 were mainly driven by the 57.1 per cent rise in lounge guests over the previous year. MIA also invested heavily in the maintenance and servicing of the airport’s existing infrastructure during the year, with these totalling €4.1 million.

MIA’s total assets as at the end of the year totalled €330.6 million, significantly higher than the €285.1 million recorded at the end of 2022.

The Board of Directors is recommending the payment of a final net dividend of €0.12 per share on all shares settled as at close of business on 15th April 2024, with the dividend being paid by no later than 31st May 2024. This follows the net interim dividend of €0.03 per share that was paid in 2023.

Additionally, MIA also announced that Gayle Lynn Callus will no longer be holding the position of Head of Retail, Property, Marketing & Communications, but he will still be assisting CEO Alan Borg, as necessary, primarily focusing on the airport’s marketing and communications functions.

Mr Lynn Callus had occupied the position since August 2023, having first joined MIA in 2018 and occupied a number of roles.

Mr Borg will be assuming responsibility for the retail and property segment of MIA in the interim.

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Written By

Fabrizio Tabone

Fabrizio has a passion for the economy and technology, especially when it comes to innovation. Aside from this, he also has a passion for football and movies, and so you will often find him either with a ball to his feet or at the cinema checking out the latest releases.