en.Wedoany.com Reported - The French government and Groupe ADP have reached an agreement on a new economic regulatory agreement (ERA), clearing the regulatory path for a €8.2 billion (approximately $9.7 billion) investment plan to modernize Paris airports.
The ERA, covering the period from 2027 to 2034, was finalized after months of negotiations between Groupe ADP, the French Civil Aviation Authority, airlines, and the French transport regulator (ART). The proposal still requires final consultations with airlines and a binding opinion from ART before it can be signed, with the plan set to take effect on January 1, 2027.
Philippe Pascal, Chairman and CEO of Groupe ADP, stated that this investment plan is the largest investment program in the history of Paris airports. He noted that this investment will significantly enhance the competitiveness of Paris airports, and as key infrastructure, these airports are vital assets for the nation's attractiveness and economy.
The investment plan will be implemented in three phases between 2027 and 2034. The initial projects will focus on optimizing the passenger experience by improving border control and security screening processes, while subsequent phases involve optimizing existing infrastructure, adding new capacity, and improving multimodal transport. Specific projects include expanding border control facilities, extending the automated people mover system at Paris Charles de Gaulle Airport, upgrading baggage handling systems, and developing new boarding facilities at Paris Orly Airport.
Under the terms of the agreement, the average annual increase in airport charges will be inflation plus 2.1 percentage points over the eight-year period. Groupe ADP's initial proposal had been inflation plus 2.6 percentage points.
The agreement was announced alongside Groupe ADP's first-half 2026 results. The results showed that attributable net profit more than doubled year-on-year to €312 million, driven mainly by gains from the partial sale of its stake in India's GMR Airports. Revenue rose 1.6% to €3.22 billion over the same period, while recurring EBITDA declined 1% to €1.02 billion. Group-wide passenger traffic edged up 0.2% to 179.2 million passengers, with Paris airports seeing a 0.5% increase to 51.6 million passengers.
Due to ongoing Middle East conflicts putting pressure on aviation demand and airline capacity, the airport operator has lowered its full-year outlook. Groupe ADP now expects Paris airport passenger traffic growth of approximately 0.5% in 2026, down from its previous forecast of 1.5% to 2.5%. Meanwhile, its recurring EBITDA guidance has been revised down to between €2.30 billion and €2.35 billion, compared with a previous expectation of more than €2.35 billion. The company stated that cost-saving measures launched in the second quarter are expected to generate savings of €40 million to €60 million, with the benefits mainly materializing in the second half of the year. Despite the weak near-term outlook, Pascal believes the ERA provides the certainty the group needs for its next investment cycle.
