Flughafen Zürich (AO) | Hold | Management remains optimistic despite industry uncertainty

Research evidence excerpt

Flughafen Zürich (AO) | Hold | Management remains optimistic despite industry uncertainty

y has some projects in the pipeline to reduce complexity (extensions

and taxiways reconfiguration).

The delayed commissioning of Noida positively impacted FY 2025 earnings, contributing to an exceptionally high dividend. The

company will stick to the dividend policy and will not maintain last year's dividend per share as a floor level.

What’s new?

Management does not anticipate any jet fuel shortages in Switzerland. By law, the federal government maintains strategic

reserves equivalent to three months of supply, which have not been used tapped to date. In addition, fuel providers are

reportedly confident about supply conditions.

Around 95% of Switzerland's fuel imports originate from Northern Europe (Amsterdam, Antwerp, Rotterdam and northern

Germany), regions that are estimated to source approximately 25-30% of their oil through the Strait of Hormuz

The company expects to provide more visibility on its international ambitions later this year. Management highlighted that it

recently participated in the Rio Galeão Airport tender in Brazil, ultimately won by Aena, and noted that new opportunities are

emerging in India.

Over time, the company is likely to bring in a partner for Noida, although management stressed that it should not be expected in

the short-term as "it is not necessary during Phase 1". The company has acknowledged significant investor interest in the asset.

Our investment view

The company appears well-positioned to benefit from strong traffic momentum in Zurich, alongside the solid outlook for Noida.

Despite the upcoming investments, FCF generation should remain solid and reinforce attractive mid-single-digit dividend yields