Athens International Airport S.A. (AIA) Earnings Call Transcript & Summary

Ladies and gentlemen, thank you for standing by. I am Geli, your Chorus Call operator. Welcome, and thank you for joining the Athens International Airport conference call and live webcast to present and discuss the Flash Note Full year 2024 Financial Results and Strategy Update. [Operator Instructions] The conference is being recorded. [Operator Instructions]. At this time, I would like to turn the conference over to Mr. George Eleftheriou, Manager, Investor Relations. Mr. Eleftheriou you may now proceed.

Thank you, Operator. Good afternoon, ladies and gentlemen, and good morning to those of you listening to us across the globe. Welcome to our conference call of Athens International Airport Flash Note Financial Result for 2024. Please note that the digital playback of the conference will be available from about 1 hour after the conference call has ended until March 6, 2025. Today, I'm joined by our CEO, Mr. Ioannis Paraschis; our CFO; Mr. Panagiotis Michalarogiannis; our CSO; Mr. George Kallimasias; and our Director of Finance, Mrs. Nadia Xirogianni. Also, let me mention that our presentation is available on our website at the section of quarterly results in the Financial Information. And with that, I would like to give the floor to our CEO.

Thank you, George. Thank you, everyone, for attending today's call on the basis of yesterday's flash notes, where we present our 2024 unaudited financial results, and a very positive strategy update for the company and its shareholders. We will turn to Page 4 of the presentation. 2024 has been a record year for Athens Airport. We handled 31.85 million passengers, a growth of 13% versus previous year. Our traffic mix characteristics remain predominantly O&D, International Passengers and Leisures. All these characteristics have contributed to an above-average rebound and growth in the post-pandemic era in other European airports as well, but very much so in Athens. Our traffic growth translates to record financial results. On the right-hand side of the slide, represents our revenue growth to EUR 665 million, both segments, the Air and Non-Air segment profited from improved revenues. Just to highlight here that when compared to 2023, the year included a compensation and a taxable compensation of EUR 20 million from the Greek state for the losses incurred in the second half year of 2020 during the pandemic. Now improved revenue performance and the good cost performance translated in improved EBITDA. And you are familiar with our adjusted EBITDA margin where we exclude the -- include our fixed part of the Grant of Rights Fee and exclude the COVID compensation, EUR 424.8 million in terms of EBITDA, and EBITDA margin is 63.8% among the highest in the airport space in Europe. That translates obviously to significant profit after tax and the decision of our Board to propose to the AGM for distribution, a dividend of approximately EUR 0.78 per share. On the next slide, #5, we see the growth versus '23, which we commented about, but at the same time, we see a very remarkable growth when compared to 2019, which was the record year pre-pandemic, important to note here that most of the growth came through the international segment was 15.7% versus '23 as opposed to 7.3% in domestic. On the next slide, we see some comparisons, which indicate that Athens strongly outperformed the European average airport space versus the average growth versus '23 in Europe was 7.4%. We had a 13% growth, but more importantly, when compared to '19, where the European airport market recovered with 1.8% versus '19 only last year, we demonstrated a growth of 24.5%. Also in the lower part of the slide, very important to note that most of our growth comes from the nonpeak quarter, not the third quarter. And that is in line with our strategy for a smoother profile of traffic throughout the year avoiding extreme summer peaks. On the next slide, Slide #7, very important part of our strategy update. Given the traffic growth over the last year, we have been working with our design and engineering teams on the 33 million annual passenger expansion and the 40MAP expansion, and we identified a clear opportunity to accelerate and optimize the expansion program and realize significant benefits. So the numbers that you are probably familiar with from the 33MAP to be completed by '28, EUR 650 million on '22 prices, and the 40MAP for [ 700 ] are now being combined into a smoother expansion phase to be completed by 2032, and deliver a capacity of 40 million annual passengers. This new approach will accelerates the delivery of 40 million passengers capacity versus by '32 versus previously the mid-30s, in the Non-Air space development in such a way, we will expand our currently 13,500 square meters to 34,000, a significant improvement compared to the previous expansion program, which would deliver only 22,000. So we have a growth of 150% in terms of commercial space, very, very important for our nonregulated activities revenues. At the same time, we are able to realize commercial and cost synergies in terms of CapEx from combining the 2 phases, while at the same time, delivering earlier on the 33 million annual capacity that previously planned, this being now scheduled for the first half year of 2028. So we have an incremental delivery of additional capacity. Now when it comes to the financing of this expansion phase to the 40MAP, we developed a program that allows us also to use equity for the financing of this phase. This Air Activities Capital Increase is important because this allows us additional returns as per our regulation that led our Board to propose from this year's dividends of EUR 235.9 million to propose a Scrip Dividend Programme, out of which EUR 100 million will be the minimum offered to the shareholders and voluntary -- excuse me, EUR 135.9 million will be the minimum cash and EUR 100 million will be a voluntary Scrip whereas we aim for the next 3 years from '26 to '28 to offer another EUR 140 million from future dividends in terms of the Scrip Programme. At this point, I think it is important to highlight, as we have indicated also in our flash notes through this increase of the Air Activities Capital, we end for respective returns consistent with our regulatory framework. As mentioned already, we will increase our Air Activities potential, added delivery of increased commercial space and additional revenue. And that allows us obviously, with the debt that we have already in place and the additional equity to retain a healthy balance sheet with net debt-to-EBITDA ratio between 2x and 3x and not to exceed 3.5x. Important also indicated on this slide to mention that our cornerstone for shareholders, both AviAlliance and HCAP have informed us today that based on the flash notes, they are favorable and they intend to participate in the Scrip Programme. And with that, I hand over to Nadia for the financial performance, more details on the financial performance of the year.

Okay. Thank you, again. I will give you some more color on the financial performance of 2024. So in slide -- in the next slide, you can see the revenue performance. As the CEO said, the impressive traffic growth plus the very successful performance of the commercial activities resulted in significant revenue level that we recorded EUR 665.5 million in 2024, which is an increase of 10.2% compared to 2023, but if we exclude the one-off compensation impact that was recorded in 2023, the EUR 20 million of the growth is 14%. The Air Activities, the regulated segment is actually the 76% of our total revenues recorded and this increased in line with traffic growth. So as you see the revenue -- the Air revenue per passenger is at EUR 15.9 per passenger as expected and as more than last year. The very good development is the increased revenue per passenger of the nonregulated segment, which actually has this uncapped profitability potential, and this is good news to the EUR 4.8 per passenger in 2023 turned, in 2024, to EUR 5 per passenger, an impressive 18.9% growth. This is mainly driven by a very good performance of the terminal retail revenues for various reasons, mainly due to the successful expansion of the international flight schedule to high-yield market, and of course, this affected spending per passenger to improve financial terms of renewed agreements, the introduction we had of new contracts throughout the year and all the inflation. So if we go to the next slide, on top of the very good revenue performance, we continue to focus on cost discipline. However, we address all the additional requirements we need to handle the traffic levels and to keep providing attractive service levels to our customers. Overall, we recorded in 2024, total operating expenses at EUR 225.7 million, this includes the variable portion of the Grant of Rights Fee, which is the concession fee that the company pays to the Greek state. This increased year-on-year because this is based on a higher profitability. If we exclude this, the remaining part of the operating expense increased compared to the previous year by 8.2%, and the growth comes as a result of the additional resources in-house and outsource we required to handle as we said, the traffic levels and the service levels we want to keep plus the inflation and minimum salary increases in Greece as of 2024 that affected by outsourcing contracts we have. Still, however, you will see that the operating cost per passenger, so excluding the Grant of Rights Fee provides a significant benefit year-on-year. So from EUR 6.1 per passenger it ended up to EUR 5.84 per passenger in 2024. So the combination of the performance of the revenues and the operating cost drives the very solid EBITDA base that we recorded in adjusted terms, and as Ioannis said, the adjusted EBITDA, which is a metric we keep track on excludes the -- any one-off items as the compensation received by the Greek state and also takes into account the fixed portion of the concession fee, which is a EUR 15 million every year. So the adjusted EBITDA we recorded in 2024 is at the level of EUR 424.8 million, with a significant adjusted EBITDA margin, very strong 63.8%. And after accounting also for the remaining fixed cost elements of the income statement, we end up at net income of EUR 235.9 million with a growth of 11.5% compared to previous year if we take out the compensation benefit. So this means that the earnings per share, which is -- which will be also the equivalent of the dividend distribution EUR 0.78 per share this year. If we go to the next slide to see some more details on the status of the regulated team. As we said, we recorded in 2024 total net income, EUR 235.9 million, this derives from the performance of both Air Activities and Non-Air Activities. We gave you a range since we are in the process of finalizing the breakdown between Air activities and Non-Air activities, so the net profit that comes from the air activities is within the range of EUR 143 million to EUR 148 million, which implies a turn negative of 26% to 27%, a bit lower than the previous year since we meet -- we had to invest on the cost side to keep the service levels. And this also means that taking into account the status of Air Activities still in the previous year, the remaining Carry Forward amount at the end of 2024 is in the range of EUR 19 million to EUR 24 million that we will target, of course, to recover in the following year. And this completes the overall picture of financial performance, and I give the floor to George to tell you more details on the restricted programs and the outlook.

Thank you, Nadia. Before going on the Scrip Dividend details, one more slide to sum up our very positive performance with a couple of charts comparing us with airport peers. On the left-hand side, you can see the traffic growth compared to other airports in -- from the base year 2019 until 2024. With regards to traffic growth and compared to all European airports with traffic of exceeding 25 million passengers, we are #1 in the growth of all these, what we call major airports. And you can see also here compared to some of the peers, you can see significant difference -- positive difference on the compounded annual growth rate. On the right-hand side, with regards to our financial performance, we also demonstrate very high profitability in terms of EBITDA margins compared to peer. This is -- this chart shows 2023 EBITDA margins. Our adjusted EBITDA margin in '23 was about 63% -- 62.9%, '24 was a little higher at 63.8%. So you can see from this chart that we also demonstrate considerably higher margins in terms of EBITDA compared to other airport peers. If we move to the next slide, 15, a few more details about the Scrip Dividend Programme for 2025. As mentioned earlier, our Board unanimously approved the distribution of 100% of our net profits, the net profits of EUR 235.9 million in '24, which equals approximately $0.78 per share, and EUR 100 million of this dividend, distributable dividend will be in the form of a voluntary Scrip and the rest, EUR 135.9 million will be in cash. The pricing terms and the calculation methodology for the price will be in line with market prices, but will be announced at the second quarter of the year after the Annual General Assembly. So some important dates for -- with regards to the milestones of the Scrip Dividend, first of all, on the 24th of March this year, we are going to -- the Board will approve the annual report and the financial statements and we will publish them and the AGM will be invited. The AGM will take place on the 14th of April, where the program -- the Scrip Dividend Programme is expected to be approved. And the exact methodology of price and the termination of the election period will be announced on the 17th of April following a Board resolution on the extraordinary share capital increase. And with that, we can move to the next section of the outlook for the year. Let's go to Slide 17. First of all, with regards to traffic forecast, we've seen spectacular growth over the last couple of years. We expect a reduction in the growth rate. And actually, we -- our forecast for 2025 is in the mid-single digit levels for passenger growth, and we expect to gradually converge to low single-digit growth rates in the long term. Another important development and important for 2025 is the fact that we have announced that in the summer period of 2025, we will change our status from non-coordinated to schedule facilitated in order to address capacity constraints with regards to a traffic control. This means that the growth will come mostly to the off-peak hours during the summer in a controlled manner. And we will also -- we have also announced that we will implement incentives to drive additional traffic in the off-peak hours. In terms of guidance on the financial performance following the full utilization of the Carry Forward amount due to the exceptional traffic and financial performance, we expect that the adjusted EBITDA margin for 2025 will decrease by approximately 100 basis points, which is slightly below our long-term target for 60% loss of adjusted EBITDA margins. We also expect incremental activities revenues from the equity increase following the Scrip issuance. And finally, on the net income for '25 and '26, we expect that we will have a net income in the order of approximately EUR 200 million annually, which includes the remaining -- the utilization of the remaining Carry Forward amount plus the additional return from Air Activities investments that we mentioned earlier from the Scrip profit. Moving on to the Expansion Programme, a few further details on the accelerated CapEx program, as mentioned earlier by the CEO, which mainly the acceleration of the terminal in a single space, the 40 million passenger capacity developed in a single space. In the central picture, you can see what our terminal is expected to look like after the completion of this space. It relates to approximately 68% increase of our floor space, by an expansion in towards the both sides of the terminal to the north to the south. And we expect that we will have faster delivery, earlier delivery of the 33 million passenger capacity by the first quarter of -- by the first half of 2028. It also features additional increased the retail space from the previous plan over the 33MAP featured approximately 60% increase in retail space. Now we project a retail space increase of approximately 150%. So moving from 13,500 square meters to approximately 34,000 square meters. The other 2 projects are also on track. We are actually completing the tender process in a few weeks, we will be awarding the construction for the development of the new multi-storey car park, which is a nonregulated activity and will provide additional None-Air Activities revenues expected to be completed by the second quarter of '27 and the additional aircraft parking positions also expected to be developed in the second quarter of '27. I think it's important to mentioned 2 things here. First of all, that our -- our expansion is based on an approved Master Plan and does not require any development of new runways or taxiways. So it's mainly terminal buildings and the 2 additional projects that we mentioned here. And in terms of cost, the other important thing is that in terms of cost, we expect that the full development of the 33 and 40MAP, as we see here. will cost approximately EUR 1.3 billion in terms of 2024 prices will be to last to the greater extent, recoverable by Air Activities revenues and is expected to be fully amortized within -- and recovered within the concession period. And if we move on to our ESG developments, we are on track with ambitious program for becoming net zero -- 100% net zero carbon by the end of the year. We have awarded last year development and construction of the last phase of the photovoltaic park is under process and is underway and is expected to be completed before the end of the year on time for the target, which will allow us to have 100% of our electricity produced on site. And we also have on track, the other 2 pillars of Route 2025 program, which is electrification of our vehicle fleet and the installation of heat pumps to replace natural gas consumption by clean electricity. And with that, I give the floor again to our CEO for the final remarks.

Thank you, George, for the summary. We can say that 2024 has been a record year, very strong traffic growth, 13% and very robust profitability. We decided on a 100% dividend payout proposal to the AGM with significant yield based on the EUR 0.78 per share. We decided to accelerate the port expansion and delivery for demand capacity earlier than originally planned by 2022, while we gradually be delivering incremental steps modules of capacity towards the final completion of the program. That allows us to generate higher activities profits due to the increase in equity through the Scrip Dividend Programme. And substantially higher Non-Air Activities revenues from additional commercial space than previously expected. So all in all, in terms of strategy outlook, we believe that the -- while continuing to deliver a world-class experience at Athens Airport to our passengers. We also -- through the accelerated expansion program to be able to create significant value for the company and our shareholders. And with that, thank you very much, and we are here to answer questions, which we assure that you will have. Thank you.

[Operator Instructions] It's from the line of Caburrasi Carlos with Kepler Cheuvreux.

I have 3, if I may. First, on the Scrip Dividends, given that you've already had conversations with your shareholders, could you shed some light on the acceptance rate you are expecting during the 2025-'28 period? And could we also assume that this option may be extended beyond 2028? Second, on the expansion plan acceleration, the paramount to be invested over the 33 and 40MAP, this EUR 1,350 based on 2022 costs. Now it's going to be EUR 1,280 even though the plan is going to be more aggressive as we can see with the commercial space. So could you give us some color on how this is going to work? And where do you expect to see CapEx savings? And the final question, if traffic continues to outperform expectations throughout the new investment plan, will we end up seeing an integration of the 50MAP into this new phase?

So yes, we will distribute the questions in the team here. In terms of the acceptance rate, we expect obviously from -- as we said from our cornerstone shareholders to participate, so as they account for 75.5%. We expect that the -- also a partial acceptance from the free float. So all in all, significant acceptance of the program. So in terms of the second question, in terms of the overall CapEx budget by integrating the 2 phases into one, we will realize CapEx savings because we -- it was obvious from the analysis performed by our design and engineering teams that a 2-step approach would require us to build parts in the airport, we would have to demolish in order to continue with the next space that is expected to deliver savings and the team may also complement on this one. And I would say that with regard to the third question, the 50MAP space remains -- is something which is not for the -- within our medium-term planning, it remains something which would be examine towards the end of the concession period.

If I may add on the cost savings, yes, -- so EUR 1.3 billion that you mentioned in the -- by adding the 2 phases of [indiscernible] we have provided guidance during the IPO, these were in 2022 prices, whereas these are more current '24 prices with a significant construction inflation, especially in '22. So we estimate considerable savings, which are in the order of EUR 200 million compared to the initial -- addition of the 2 phases from construction synergies.

The next question is from the line of Lobbenberg Andrew with Barclays.

Congratulations on some strong results. Can I come back to the question that my colleague just asked on the Scrip Dividend. He said is it possible you might continue the Scrip Dividend Programme beyond the beyond the 4 years that you've announced or perhaps asking the same question in another way, I know you're balancing the interest of different stakeholders here, but introducing the Scrip Dividend Programme clearly is quite value-accretive for shareholders. So how did you decide on this scale of the Scrip Programme? Why wouldn't it be a bit higher and that would be -- create more value for shareholders. Then the other question I would just like some discussion on is the aviation revenue per passenger. I think in the flash note, you referenced that you expect aviation revenue per passenger to come down in 2025. And yet the tariffs are flat but you've got some incentives. So can you give us any guidance on the scale of unit revenue aviation revenue decline that you expect for 2025?

Thank you, Andrew. On the questions, would we plan to -- for more Scrip that what we announced now. No, that is not part of our planning. Number two, what is the basis about which we decided on the size. This is the [indiscernible] of our need for Air Activities expansion and what the regulation allows in line with our debt levels. So it is something which is fully in line with our regulation. As you know, the prior regulation as a priority for debt, but based on special criteria allows us, but obviously, equity cannot be injected abusively, let's put it this way. The other question was about the levels of charges. Yes, as we have indicated any adjustments, as Nadia indicated from the depletion of the Carry Forward amount and which obviously will be also offset to an extent by the additional, the accretion of our ability to generate Air Activities profits from the Scrip. But any adjustment there will be done through temporary incentives. Nadia, do you want to...

And the target is -- our planning now that we are designing the temporary incentives, they will be significant of the overall target of the profitability of the Air Activities segment in 2025, we target to be at the 15% return of equity, the Air Activities Capital -- renewal Air Activities Capital plus the full depletion of the remaining balance of the Carry Forward amount at the end of 2024. So this gives you an overall picture for their activities. And this is why we also provided the guidance of the targeted overall net income for both Air Activities and Non-Air Activities at the level of EUR 200 million for next year and 2026.

We do not plan for any over earnings. Let's put it this way. And I'm sure you know what we mean.

The next question is from the line of Ramamoorthy Harishankar with Deutsche Bank.

Maybe a couple of clarifications to start off with. The Scrip Dividend that you might end up having for this year, does it [ burn ] the 15% return for the full year? Or is it prorated for when it's added to the equity? And then when we talk about the EUR 140 million of future Scrip Dividends, would it be -- how is it going to be phased? Is it going to be front loaded? So maybe another $100 million for the next year? Is that the right way to think about it? And continuing on this point on Scrip Dividends, do you need the airlines to kind of agree to this mechanism of adding to the equity? Because presumably, that impacts the charges. Maybe I'll pause here and come back to you with a couple more, but...

Okay. Starting from your last question and then addressing the other ones, I think Nadia will have the answers. As you probably know based on our regulation, we are at the end of the responsible for setting the charges. Obviously, we need to demonstrate that we by the regulation included in the concession agreement. And therefore, we always need to have the proper legal and auditors backing in doing so. So we announced our charges. We also will complete our consultations. What we said is -- what we say is that what we plan is fully in line with that regulation. We have informed our regulator about this as well. But in our case, the regulator has no saying unless an airline would object and therefore, they would have to opine. This is exactly the same process that we have followed this year already with the adjustment of charges when the ADF was reduced from 9 to 3 -- from [ EUR 12 to EUR 3 ] and we adjusted our charges, respectively. That was exactly the same process. So we have the full legal and audit baking for the process required in line with regulation.

Now as regards to the first question, the enticement of 15% of the additional Air Activities Capital, we start from the, let's say, the moment that we will increase the Air Activities cover. So we expect for 7 or 8 months depending on the timing. So it will be equivalent in the time of the year that we will have this Air Activities equity. And as regards the future planning for the additional Air Activities Capital, it's -- the plan is front-loaded, but our consideration in general is that in the following years, we will try to have also a significant share of cash dividend. So most probably, we will try to distribute it as based on this consideration, let's say.

Sensible, very sensible. Maybe just a couple more. In terms of OpEx per pax for the near term, I believe you've come in quite commendably lower than what we thought you might end up landing at. So any guidance for OpEx per pax in the near term? And maybe one last thing. In terms of the retail space becoming operational in terms of the capacity expansion, is that also going to be in a linear fashion? Or is that going to be more sudden and step increase?

As regards to the OpEx passenger, we remain with our guidance that we will need to invest with more resources in-house and outsource to address the traffic levels and taking into consideration our terminal capacity level. So we expect that we will have on the passenger level, no further, let's say, savings in the future. And in relation to the retail revenues, the upside will be more modular, let's say, step-up increase volume the completion of the additional terminal retail space that we will build.

Exactly -- will be as the various elements of the terminal will be delivered. So it's not going to be linear, but we will have gradual deliveries and the first month will be in '28 with the delivery of also capacity of approximately 33 million to 34 million passengers in the terminal.

The next question is from the line of Maglione Dario with BNP Paribas.

I have 2 questions, actually maybe 3. I'll start with the first one. At the EPS level, if I sit in 2028, will this Scrip Dividend be dilutive or accretive as a rough estimate? Second question on commercial revenue per passenger. For 2025, you said you expect a limited upside. What exactly does that mean? If you like flat or maybe small growth year-on-year? And what's the outlook during the construction phase. And maybe last question. Again, regarding a Scrip Dividend, what if you can place the full amount, EUR 240 million? What are the alternatives?

Commenting on the last question, the EUR 240 million is the maximum offering. Obviously, there is also a tax there of about 5%. And obviously, the final amount will -- of equity will also depend on the uptake. So we -- the number, obviously, that we are targeting is not to EUR 240 million, but something below that. We are very confident that we will raise that based on the comments we made earlier. And...

On the second question, if I understood correctly, you were asking about the commercial revenues per passenger in the following year. So what we have given some guidance, let's say, in the past, we were expecting some disruption in the commercial revenue per passenger. This did not really happen. So we managed to even increase the revenue per passenger of the commercial than Non-Air within 2024. Our target now is, again, not to see disruptions and diminishing revenue per passenger, we expect we will target to have this stable before we see the significant increase following the realization of the expansion, both on terminal retail spaces and multi-story car parking. And then...

I think on the first question on the -- whether the -- even after any dilution effects in '28, whether the ABS will be accretive in the impact of the dividend there over the Scrip will be accretive. The answer is yes, we expect that the impact will be positive.

[Operator Instructions] The next question is from the line Wojtal Marcin with BOA.

Could you please explain why your funding strategy for capacity expansion has changed over the last 12 months? I believe a year ago, you were guiding for CapEx to be funded 100% with debt issuance. And now you are talking about debt issuance, but also equity issuance. So is that mostly because your CapEx plan is now larger and accelerated? Or it has more to do with the fact that you can now include equity issuance proceeds in your regulatory equity balance and earn a return of up to 15%? Or is it actually a combination of both?

Good question. As we've indicated in the past, the regulation puts a clear reference on debt and our program will comprise 2 phases, a phase up until 2028 for the 3 months based on the traffic profile that we were forecasting back then. And then, let's say, the idle period and then a recommencement of the expansion towards the 40MAP in the mid-30s based on the profile we presented. However, based on the very strong traffic growth, we have, as we mentioned, worked on the different implications of that and our ability to cope with traffic growth. And we showed a clear benefits of harmonizing these phases into and optimizing them into one up until 32. That generates a different profile of investments and based on that different profile of investment, we satisfied the criteria included in our regulation for the inclusion also of equity for the partial financing, and that is an important change. That's why we -- apart from the -- in the flash note we felt obliged to inform our shareholders and the investor community about it because this is a change, but a very positive strategy update.

The next question is a follow-up question from Mr. Maglione Dario with BNP Paribas.

This one is 2 on traffic. So how concerned shall we be about the capacity constraints and the works at the terminal? Will we have an impact on traffic in the midterm, while the traffic growth -- while the construction is ongoing. And then second question on the impact of the engine Pratt & Whitney 1000G on the airlines. Do you expect -- I mean, do you expect like an improvement like airlines cutting back these planes anytime soon?

Well, I think as we indicated, we have seen very strong traffic growth, and we are able to cope with the traffic growth. And we expect traffic to ease going forward. And as we indicated also and explained, we are applying a number of measures in order to be able to accommodate like the, for example, scheduled facilitation in order to be able to grow in the off-peaks. Obviously, we don't have any capacity issues when we talk about the off-peaks, off-peak days off-peak seasons. However, we need to cope with the peaks. And what we expect is that no disruptions in terms of the projected capacity growth. And as we said, we do not expect things to move on with 13% on an annual basis. Let's bear this in mind. And the second question was about the Pratt & Whitney engine. Actually the Pratt & Whitney engine problem was very, very pronounced in '24. And as you saw -- and you know that also our homebase airlines have also partially invested in fleet suffering from the Pratt & Whitney problem, but they were able to cope and expand significantly. And based on what they informed us for next year, the growth and the investment in the airport will be even higher as they recover from the Pratt & Whitney engine issue. So we do not expect to be impacted by that negatively. As I said, we saw this year, 13% growth despite that issue being out there.

[Operator Instructions] There are no further questions at this time. I will now turn the conference over to Mr. Paraschis for any closing comments. Thank you.

Well, thank you very much for attending this call. And as indicated, we will have a number of announcements coming up around the implementation, the distribution of dividends of our implementation Scrip Dividend Programme, and we will have more chances, again, to talk. And we thank you very much for your interest in Athens International Airport. Thank you.

Ladies and gentlemen, the conference is now concluded, and you may disconnect your telephone. Thank you for calling, and have a pleasant evening.