2 High-level revenues, costs, staff and balance sheet data

2.1 Revenues and traffic

This chapter provides a preliminary overview of high-level revenues, costs and staff data provided in ANSPs ACE 2023 data submissions.

Total ANS revenues in 2023 amounted to €10 784M. Most en-route revenues come from the collection of en-route charges (95.4%, see left pie chart). The proportion of terminal revenues from charges is lower (72.1%, see right pie chart), as additional income may directly come from airport operators (18.1%) through, for example, a contractual arrangement between the ANSP and the airport operator.

En-route	%	Gate-togate revenues (€ M)	%	Terminal
8 216	95.4%	Income from charges	72.1%	1 567
n.a.	n.a.	Income from airport operators	18.1%	393
1.0	0.01%	Income from the military	0.04%	0.9
61	0.7%	Income in respect of exempted flights	2.3%	51
60	0.7%	Income from domestic goverment	3.8%	83
213	2.5%	Financial income	2.5%	55
59	0.7%	Other income (incl. exceptional revenue item)	1.1%	24
8 610	100%		100%	2 174

Figure 2.1: Breakdown of gate-to-gate ANS revenues, 2023

Across the Pan-European system, traffic in 2023 (measured in composite flight-hours) was +11.0% higher than in 2022 but remained -3.7% lower than in 2019. In the meantime, total gate-to-gate revenues increased slightly more than traffic (+12.9%, or +€1 229M) and remained -3.8% lower than in 2019.

Figure 2.2: Composite flight-hours (left) and gate-to-gate ANS revenues (right) of the Pan-European system, 2018-2023 (real terms)

At ANSP level, traffic in 2023 recovered to varying degrees from the crisis caused by the COVID-19 pandemic (see Figure 2.3). At the higher end, composite flight-hours were +63% and +38% above 2019 levels for Sakaeronavigatsia and Albcontrol respectively. While at the lower end, traffic remained -43% and -39% below 2019 levels for MOLDATSA and LGS respectively. The war in Ukraine continued to cause airspace closures and reciprocal sanctions on air carriers, which impacted traffic flows in Europe. This inevitably impacted the levels and trends of ACE indicators for the most affected ANSPs.

Figure 2.3: Changes in composite flight-hours between 2019 and 2023

Looking forward, the recent EUROCONTROL Seven-Year Forecast shows that traffic may remain below pre-pandemic levels until at least 2025.

2.2 Costs

The ACE benchmarking analysis focuses on the specific costs of providing gate-to-gate ATM/CNS services, which amounted to €9 697M in 2023. Operating costs (including staff costs, non-staff operating costs and exceptional cost items) accounted for some 84% of total ATM/CNS provision costs, while depreciation costs and the cost of capital represented around 16%.

	En-route		Terminal		Gate-to-gate
	€ M	%	€ M	%	€ M	%
Staff costs	5 027	66.2%	1 434	68.1%	6 461	66.6%
ATCOs in OPS employment costs	2 442	n.a.	689	n.a.	3 131	n.a.
Other staff employment costs	2 585	n.a.	745	n.a.	3 330	n.a.
Non-staff operating costs	1 304	17.2%	368	17.5%	1 673	17.3%
Depreciation costs	745	9.8%	176	8.3%	921	9.5%
Cost of capital	499	6.6%	121	5.8%	621	6.4%
Exceptional items	15	0.2%	7	0.3%	22	0.2%
Total ATM/CNS provision costs	7 591	100.0%	2 107	100.0%	9 697	100.0%

Figure 2.4: Gate-to-gate ATM/CNS provision costs at Pan-European system level, 2023

Total ATM/CNS provision costs rose by +2.9% (+€272M) in 2023, reflecting cost increases for 27 out of 38 ANSPs. A rise in staff costs (+€309M) was the main source of the increase in 2023, with six ANSPs accounting for 76% of the overall change in staff costs (ENAIRE, DHMI, LFV, Skyguide, ROMATSA and NAV Portugal). However, staff costs remain -3.0% lower than 2019 levels and as such total costs are - 3.6% lower given the large proportion for which staff costs account.

Figure 2.5: Changes in gate-to-gate ATM/CNS provision cost categories (real terms)

In 2023, the six largest ANSPs in terms of costs (DSNA, DFS, ENAIRE, NATS, ENAV and DHMI) bore some 58% of the total Pan-European gate-to-gate ATM/CNS provision costs, while the six smallest ANSPs accounted for some 1% (see bottom left part of Figure 2.6).

Trends in ATM/CNS provision costs at Pan-European system level

Figure 2.6: Changes in ATM/CNS provision costs (real terms)

2.3 Staff

The Pan-European ANSPs employed a total of 53 060 staff in 2023 (comprising 52 221 staff providing ATM/CNS services and 839 internal MET staff). Some 17 368 staff (33%) were ATCOs working on operational duties, split between ACCs (55%) and APP/TWR facilities (45%). On average, 2.0 additional staff are required for every ATCO in OPS in Europe.

Figure 2.7: Breakdown of total gate-to-gate ATM/CNS staff at Pan-European system level, 2023

In 2023, the number of ATM/CNS staff increased by +1.0% or +537 FTEs compared to 2022. It however remained -1.5% lower than in 2019.

Trends in gate-to-gate ATM/CNS staff at Pan-European system level

Figure 2.8: Total gate-to-gate ATM/CNS staff per staff category

The overall change in staff numbers observed between 2022 and 2023 mainly reflects changes in the following staff categories:

ATCOs in OPS (+231 FTEs, or +1.3%), although this increase is partly offset by a reduction in ATCOs on other duties (-154 FTEs, or -6.8%);
OPS support (non-ATCOs) (+122 FTEs, or +3.1%); and,
Technical support staff for operational maintenance, monitoring and control (+112 FTEs, or +1.3%).

All other staff categories showed an increase in reported staff numbers, as shown in Figure 2.8. The highest proportional increase (+5.0%) was in ab-initio trainees, suggesting that some ANSPs increased recruitment of trainees for ATCO positions in 2023.

Compared to 2019, the number of ATCOs in OPS was +0.7% higher in 2023, while the number of support staff was -2.5% lower. The overall reduction in support staff was mainly driven by a -6.6% decrease in administrative staff (-600 FTEs), partly compensated by a +25.0% increase in the number of on-the-job trainees (+240 FTEs).

2.4 Balance sheet structure and capital expenditures

ANSP balance sheets in 2023 comprised €9 159M in capital and reserves and €5 891M in borrowings. Capital expenditure amounted to €1 186M in 2023.

Figure 2.9: Capital & reserves and borrowings (left) and capital expenditures (right) of the Pan-European system, 2018-2023 (real terms)

As shown in previous sub-sections, the increase in revenue (+€1 229M) outpaced the increase in provision costs (+€272M) by +€958M in 2023. It appears that this amount has been predominantly used to reduce debt by -11% (-€721M) and, to a lesser extent, increase capital and reserves by +2% (+€193M) relative to 2022.

On the other hand, capital expenditures, which were scaled down in 2020 and 2021 due to liquidity issues and uncertainty as a result of the COVID-19 pandemic, remained at a relatively low level compared with 2018-2019.

ANSPs’ cash and liquidity situation is outlined in more detail in Chapter 5.