Flughafen Wien AG Records Stellar Traffic Results, Yet NuWays AG Maintains 'Hold' Recommendation

Flughafen Wien AG (FWAG) has reported its March 2024 traffic statistics, showing significant passenger growth, surpassing NuWays AG's forecasts. The airport operator saw a 12% year-on-year increase in group passenger numbers to 2.88 million, led by a remarkable 30% growth in Malta and an 8% increase at Vienna, despite a strike by Austrian Airlines' staff. These results have propelled strong Q1 2024 expectations, with projections of overall sales growing by 17% year-on-year to €212 million due to both a statutory increase in airport charges and passenger growth.

Looking ahead, FWAG anticipates even stronger performance in the second and third quarters of 2024, driven by the busy summer months, with projections indicating a potential outperformance compared to the previous summer. This suggests a promising year for FWAG, as travel demand continues strong and airlines expand flight capacities. However, despite this optimistic start and the expectation of a record year in terms of passenger numbers and financial performance, NuWays AG maintains a 'Hold' recommendation on FWAG, with a target price of €58.00, citing the company's current valuation as reflective of its performance.