Malta International Airport Plc

Earnings Release • Jul 27, 2017

COMPANY ANNOUNCEMENT

Malta International Airport plc (the "Company")

Announces updated Forecast and Financial Targets for 2017

Date of Announcement	27 July 2017
Reference	261/2017
In terms of Chapter 5 of the Listing Rules

QUOTE

Malta International Airport's revised projections indicate that circa 5.8 million passengers are expected to pass through the terminal by the end of the year, establishing a new traffic record for the airport.

In the first half of the year, Malta International Airport had already registered 2,639,712 passenger movements, amounting to an increase of 20 per cent over the same period in 2016.

This solid six-month performance encouraged the company to revise its original forecast announced in January, taking into account the growth rate reached so far, traffic developments for the winter season, and trends observed in the aviation industry.

MIA CEO Alan Borg presented this forecast at a press conference, noting that while passenger numbers have recently been experiencing an increase across all months, Malta International Airport will be persisting in its efforts to ascertain that the upcoming winter season maintains the momentum gained thus far.

"Considering that we celebrated our 5 millionth passenger milestone only last December, closing off this year with 5.8 million passenger movements would constitute the biggest all-time leap - of over 750,000 passengers - in annual traffic. This is the result of enhanced connectivity and increased capacity; two priorities that, together with our stakeholders, we continuously strive to improve," said Mr Borg.

Detailed traffic results for the first half of 2017 revealed that June was the third consecutive month to register over half a million passenger movements. The growth experienced in the first six months was bolstered by an upturn of 15 per cent in aircraft movements and 19 per cent in seat capacity.

Despite the increase in seat capacity, with over 3 million seats available on flights operated to Malta International Airport in the first six months, a healthy seat load factor (SLF) was maintained, which stood at 80.7 per cent.

Looking ahead, important developments for winter 2017-18 include the introduction of four new winter routes operated by Ryanair and EasyJet, and the extension of a number of routes from summer into winter by Air Malta, Wizz Air and Aegean Airlines. In addition to this, increased flight frequencies during the upcoming season will also be offered by SAS, Lufthansa, Vueling, and Jet2.

By the end of the year, the airport will have invested €16 million in its infrastructure, with the heftiest injection being in the terminal reconfiguration project. Completed project milestones include the opening of a new La Valette lounge, a reconceived observation deck, and the security screening area relocation. Upon conclusion of the project's first phase, the terminal will also be furnished with 8 additional check-in desks and a new baggage handling system (BHS).

The company's financial targets for the year were also revised as follows;

Total Revenue is expected to reach over €79 million EBITDA is expected to reach over €45 million Net Profit is projected to reach over €23 million Capital Investments are estimated at €16 million Net Debt is estimated to be NIL.

Annual taxes and dividend contributions to government are expected to be in the region of €16 million.

UNQUOTE

Signed: Louis de Gabriele COMPANY SECRETARY Note

Some changes in data collection have come into effect as from January 2017, with the numbers reported being marginally different to those reported in previous years. This, however, does not have a material impact on our reported results. If further details are required, kindly contact the Marketing & Brand Development team via communications@maltairport.com.

About Malta International Airport

Malta International Airport is the only airport serving the Maltese Islands, connecting the tiny island state to more than 80 destinations in Europe, North Africa and the Middle East, through over 30 partner airlines. With 97% of all Malta's tourists flying through it, the airport handles more than 5 million passengers and over 15,000 tonnes of freight annually. Since becoming fully operational in 1992, the terminal has received continuous investment and now accommodates more than 20 retail outlets, 14 catering establishments and parking for over 1,500 cars. Malta International Airport owns SkyParks Business Centre, which contains nearly 10,000m² of Malta's hardest working office space and 4,000m² of retail and amenities for the business and local community. The building is eco-certified by BREEAM and has become one of Malta's most sought-after corporate addresses.

For more information, visit www.maltairport.com. Alternatively, follow us on Facebook (facebook.com/maltairport).