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5th June, 2020

Budapest Airport reinvests profits

Budapest Airport (BA) reported a Ft 29 billion profit for 2019, up from Ft 24.5 billion a year earlier but the airport operator decided to channel the entire amount back to is operations instead of paying out a dividend as in 2018, Mfor writes.

Revenues surged from Ft 95 billion in 2018 to Ft 110 billion, as passenger traffic grew to a record high of 16.2 million.

Despite the massive profits, the company came under fire from the government. “Poor operation, maximum profit,” Prime Minister’s Office leader Gergely Gulyás declared at a press conference in the summer of 2019.

There were rumours that the campaign against operator BA was the start of an effort to help Lőrinc Mészáros acquire the company.

BA carried out management changes at the top with a new CEO and new leader at the helm of corporate communications and government relations.

Negotiations have begun and the company has committed itself to making significant investments.

The criticism has died away and the fact that the company decided not pay out profits to shareholders may have also played a part, Mfor adds.

The majority owner of BA, with a 55.4% stake, is German company AviAlliance, which was bought by a Canadian pension fund.

Sources regularly consulted, with abbreviations used in text: Népszabadság (N); Magyar Hírlap (MH); Világgazdaság (VG); Napi Gazdaság (NG); Magyar Nemzet (MN); Népszava (Nsz); Kossuth Rádió news (KR); nightly TV news (TV).

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