Flughafen Zürich: Noida Comes Online, but 2026-27 Profits Face the Takeoff Tax

Strong H1 traffic and record revenue mask the cost of the Indian expansion and new airport charges.

FHZN.SW · Earnings Call · 2026-08-28

Strong H1, but the Pendulum Swings

Flughafen Zürich reported its strongest ever first half, with revenue up 5% to CHF 674 million and EBITDA climbing 4% to CHF 374 million. Passenger volumes at Zurich Airport rose 6% to 15.8 million, driven by robust local demand that more than offset a 30% slump in Middle East travel. “The first half of 2026 delivered the strongest half year result in the company's history.” — Lukas Brosi, Host / Executive (likely CEO or similar senior role) · 2026-08-28 Yet management's guidance for the full year points to flat EBITDA and lower net profit as the Noida International airport ramps up and new airport charges take effect. The company also faces a broader disciplined approach to capital allocation, with heavy investments in infrastructure projects like the new Dock A and the landside passenger zones, which will temporarily disrupt commercial activity.

Noida: The Growth Story with a Near-Term Cost

The headline event was the long-awaited commercial opening of Noida International on June 15. The company touts it as a key milestone for the International business, but the ramp-up has been slower than hoped due to geopolitical tensions and airspace closures. CFO Kevin Fleck quantified the impact: “With 1 million passenger, we expect a negative contribution this year and then a breakeven is expected next year in 2027.” — Kevin Fleck, Chief Financial Officer (CFO) · 2026-08-28 The airport is expected to add roughly CHF 80 million in annual depreciation and financing costs from 2027, pressuring group profitability. Management remains confident in the long term, citing India's favorable demographics and open aircraft orders. They are also considering bringing in a strategic partner to fund Phase 2 expansion, but they are not rushing: “We are not in a hurry. We wait for the right momentum and the right partner to assess a potential partnership.” — Lukas Brosi, Host / Executive (likely CEO or similar senior role) · 2026-08-28 Beyond Noida, the company is tightening its portfolio. It agreed to sell its 12.75% minority stake in Belo Horizonte to ASUR, generating a one-time gain of roughly CHF 17 million before taxes. This aligns with the strategy of focusing on majority holdings with operational control. Dividend policy is also under scrutiny; management signaled that if net profit falls this year, the dividend will likely be lower.

We will stick to our dividend policy because we believe it's the right balance between investing, being an attractive shareholder and also kind of a reliability towards the capital market to have kind of a guidance where the dividend goes.
Kevin Fleck, Chief Financial Officer (CFO) · 2026-08-28

The company also reaffirmed its long-term ambition of reaching CHF 3 billion revenue by 2040, with the international business contributing up to 50% of group revenue and EBITDA.

Costs and Charges: The Near-Term Squeeze

The near-term headwinds are twofold: a ~10% reduction in airport charges starting October 2026 and the operational costs of Noida. Management expects Zurich operating costs to slow in H2, but international costs will rise. The geopolitical environment remains a wildcard; the operating hour situation in Zurich improved with political backing, but the Middle East conflict continues to affect traffic. The company is navigating a period of heavy investment and strategic transition, balancing immediate profitability against long-term growth. As CEO Lukas Brosi noted in the prepared remarks, "We have now an operation of a little bit more than 2 months" at Noida, and the outlook remains uncertain. The market will watch whether the slower ramp-up is merely a delay or a permanent shift, but the company's underlying traffic trends in Zurich remain solid, reinforcing confidence in its ability to generate sustainable cash flows.