Financial performance

The increasingly precarious security situation in North Africa and Turkey and the political tensions between Turkey and the Russian Federation marked the business year 2016. Travel patterns changed as a result. Compared with the previous year, 29 percent fewer tourists flew to Egypt and Tunisia and 23 percent fewer to Turkey. Nevertheless, traffic volume in German airspace grew by 2.6 percent to 3,108,761 IFR flights.

Net income came in at €86.6 m (2015: €123.6m). Profit was influenced by the impact of converting the charges-related cost-base to IFRS and the resulting remeasurements for occupational pensions.

Last year, DFS earned its revenues from two sources. The main source of revenue is generated by collecting charges from aircraft operators for air navigation services in line with the principles of the International Civil Aviation Organisation (ICAO) and EUROCONTROL. The regulated sub-area of en-route services has been subject to economic regulation in the form of a performance system that has laid down binding charges in accordance with EU regulations since 1 January 2012. At the beginning of 2015, the sub-area of terminal services was also transferred to a system of economic regulation. As was the case until the end of 2014, the charges are still set by means of a statutory instrument of the Federal Government.

The second source of revenue comes from other DFS business activities.

* The bonds issued by DFS are only listed on the Luxembourg stock exchange. For this reason, DFS chose Luxembourg as its home Member State in keeping with Article 2 of Directive 2004/109/EC on the harmonisation of transparency requirements in relation to information about issuers whose securities listed to trading on a regulated market.