Our financial results are largely determined by the growth in passenger numbers and cargo volumes and the associated developments in air transport movements. With regard to Amsterdam Airport Schiphol, the largest and principal airport within Schiphol Group, we expect that there will be little or no increase in passenger numbers and air transport movements in 2008 because of the introduction of the Air Passenger Tax on 1 July. Cargo transport is expected to grow by 4% to 1.67 million tonnes. This expectation is based on the assumption that the world economy and the Dutch economy will not go into recession, that the aviation industry will not be hit by crises similar to those that have occurred in the past, and that the current negative developments in the financial markets will not have any major repercussions on the aviation sector.
No material changes in staff numbers are expected in 2008.
Investments in 2008 are estimated to be approximately EUR 550 million. Half of this amount will be spent on aviation facilities at Amsterdam Airport Schiphol. Financing charges will consequently increase. Given the repayment commitments, the funding of these extensive investments, the available cash resources and the projected cash flow from operating activities, we will attract debt capital in 2008 in order to meet our funding requirement.
We expect that the net result for 2008, excluding the fair value gains or losses on property, will be lower than the net result for 2007.
Schiphol, 13 February 2008
The Board of Management