Amsterdam Airport Schiphol (AMS) has announced a 6 billion EUR investment plan aimed at enhancing its infrastructure, working conditions, and service offerings over the next five years.
This investment, the largest in the airport’s history, is designed to improve the experience for both passengers and airlines, ensuring Schiphol maintains its status as a leading global hub.
The investment plan covers 2024 to 2029. It includes extensive maintenance and renovation of aviation infrastructure, passenger and employee facilities, and implementations to enhance working conditions.
The plan extends previously announced investments, with significant upgrades intended for key infrastructure components such as Pier C, the baggage basement, climate-control systems, escalators, aircraft stands, and taxiways.
Additionally, the investment includes the completion of Pier A and the commencement of new construction projects, including a new baggage basement.
Pieter van Oord, CEO of Schiphol Group said:Our infrastructure is the foundation of our service, but it is currently far from what we want to offer our passengers as a quality airport in the Netherlands. We have a major investment plan of 6 billion because it is crucial to bring back passenger satisfaction and top service to our airlines. At the same time, we need to restore the balance between the benefits and burdens of Schiphol. We are and will remain committed to reducing our noise impact on our surroundings and to improving the working conditions of all employees at our airport.
This investment plan follows a significant recovery in passenger numbers, including a 9% increase in the first half of 2024, This has brought the total to 36.1 million across Royal Schiphol Group’s airports.
Amsterdam Airport Schiphol alone welcomed 31.8 million passengers, reflecting an 11% rise compared to the same period in 2023. The number of flights also increased by 12% to 230,417, though this remains 5% below pre-pandemic levels.
Schiphol Group’s financial performance is also on the mend, with an underlying net result of 99 million EUR in the first half of 2024. However, the operational cash flow after investments remains negative, at 188 million EUR.
Despite a successful operational period during May and the summer holidays, overall passenger satisfaction is still not at the desired level, underscoring the need for the upcoming investments.
CFO Robert Carsouw said:Although it is encouraging to see that our financial results are improving and that our balance sheet is strong, our overall financial performance is not yet satisfactory. Increasing operational costs and the investment portfolio put heavy pressure on our current and long-term cash flows. It is in everyone’s interest that Schiphol once again becomes a high-quality airport with robust infrastructure and excellent service to our passengers and airlines. Our investment plans of 6 billion euros in the next five years are larger than ever before and fundamental to achieve this. Realising our ambitions require a significant step-up and acceleration of our operational cash flows, without losing focus on our competitiveness.
