Notes to the financial statements

The 2025 financial statements of Zurich Airport Ltd., based in Kloten, have been prepared in accordance with the accounting provisions of the Swiss Code of Obligations (CO).

As Zurich Airport Ltd. prepares consolidated financial statements in accordance with accepted financial reporting standards (IFRS accounting standards), it has omitted to present disclosures on interest-bearing liabilities, disclosures on auditors’ fees, a cash flow statement and a management report in these financial statements in accordance with the statutory provisions. As in the previous year, the average number of full-time equivalents was over 250 in the reporting period.

The financial statements were prepared in Swiss francs (CHF). Unless indicated otherwise, amounts are stated in millions of Swiss francs (CHF million). Due to the rules on rounding up or down, individual figures may not add up to precisely the sum total stated. This may also mean that individual amounts round to zero.

Capitalised expenditure is now reported as part of total revenue. The corresponding prior-year figures have been adjusted.

The significant valuation principles that have been applied but are not prescribed by law are described below.

With respect to formal expropriations, the reporting of noise-related costs in the financial statements is a complex matter due to a multitude of relevant legal bases, unclear or pending case law and political debate. Especially in the case of formal expropriations, this financial reporting requires significant assumptions and estimates concerning the capitalisation of the respective intangible assets and the obligation to recognise provisions for the related costs.

Costs for formal expropriations qualify as an intangible asset under the accounting provisions of the Swiss Code of Obligations. They are recognised as assets at the latest on the date on which the counterparty has attained an enforceable claim and the intangible asset is amortised using the straight-line method over the remaining term of the operating licence (May 2051). Adequate provisions are recognised for current liabilities arising from sound insulation and resident protection measures. Any balance of revenue from noise charges after deduction of noise-related costs (compensation for formal expropriations, sound insulation and resident protection measures, operating costs, financing costs and amortisation) is transferred to the provision for aircraft noise (see note 8, Provision for aircraft noise).

Zurich Airport Ltd. has received a total of around 20,000 noise-related claims for compensation, of which just over 5,000 were still pending at the end of 2025. Around 450 of these cases are currently being examined by the Swiss Federal Assessments Commission.

The rulings by the Swiss Federal Supreme Court in the first half of 2008 on fundamental issues related to formal expropriations enabled Zurich Airport Ltd. to estimate the total cost of compensation for formal expropriations for the first time, in spite of the remaining uncertainties regarding the accuracy of this estimate. In further rulings in 2010, the Swiss Federal Supreme Court definitively set the cut-off date for the foreseeability of approaches from the east as 1 January 1961 and, in 2011, it ruled definitively on the method used to calculate a decline in the market value of investment property. In 2016, the Swiss Federal Supreme Court handed down two rulings in test cases regarding claims for compensation relating to eastern and southern approach routes and, in 2018, it handed down two rulings in test cases regarding cooperative ownership. Based on these Swiss Federal Supreme Court rulings and other fundamental issues that have been decided, Zurich Airport Ltd. undertook a reappraisal of costs for formal expropriations at these dates, which in each case led to an adjustment to both the provision for formal expropriations and the intangible asset from the right of formal expropriation. On 22 November 2019, the Swiss Federal Supreme Court handed down a ruling in test cases regarding the period of limitation on claims for compensation in Oberglatt. This Swiss Federal Supreme Court ruling and other fundamental issues that have been decided enabled Zurich Airport Ltd. to undertake a reappraisal of the outstanding cost of compensation for formal expropriations as at 31 December 2019.

With respect to sound insulation and resident protection measures, Zurich Airport Ltd. is required to implement sound insulation measures in the area where it claims exemptions from noise limits (threshold values). In this context, the Federal Office of Civil Aviation (FOCA) has initiated a night-time noise abatement procedure. The area with exemptions under the Sectoral Aviation Infrastructure Plan adopted by the Federal Council on 23 August 2017 is to be extended. In 2018, the Board of Directors approved further sound insulation measures in this context.

As at the reporting date 31 December 2025, Zurich Airport Ltd. has recognised, in the financial statements according to the provisions of the Swiss Code of Obligations, in connection with the noise issue, intangible assets from the right of formal expropriation of CHF 20.8 million (previous year: CHF 21.5 million) and a provision for aircraft noise of CHF 428.2 million in total (previous year: CHF 426.8 million).

Revenue recognition

Revenue is recognised by Zurich Airport Ltd. when the service has been rendered, it is probable that economic benefits will flow to the company and those benefits can be measured reliably. In addition, the significant risks and rewards of ownership have to be transferred to the recipient of the service. Revenue from fixed-rent tenancy agreements is recognised on a straight-line basis over the term of the agreement. Conditional rental payments (including turnover-based tenancy agreements) are recognised on an accrual basis based on the turnover generated by the lessee, in which case a minimum rent may be applied. If lessees are granted significant lease incentives (e.g. rent concessions), the equivalent value of the incentive is recognised on a straight-line basis over the original or remaining lease term.

Inventories

Inventories mainly comprise operating supplies and consumables necessary for the maintenance and repair of property, plant and equipment and are stated at cost or, if lower, at net realisable value. The weighted average method is used for the valuation.

Financial assets of the Airport Zurich Noise Fund

The financial assets of the Airport Zurich Noise Fund comprise essentially quoted bonds. They are initially recognised at cost (fair value plus directly attributable transaction costs). The securities are subsequently measured at amortised cost, with gains and losses recognised in profit or loss. A fluctuation reserve is not recognised.

Property, plant and equipment

Property, plant and equipment is stated at acquisition or production cost less accumulated depreciation and impairment. With the exception of land, which is not depreciated, items are depreciated over their estimated useful life using the straight-line method. The useful life for each category is as follows:

If there are indications that they are impaired, the carrying amounts are reviewed and, if necessary, adjusted.

Leases

Leases are accounted for by applying the concept of control. In doing so, a lease contract is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of the leased item to Zurich Airport Ltd. as lessee. All other leases are operating leases. At the commencement date of a finance lease, the value of the leased item is recognised as a right-of-use asset and as a lease liability in the same amount. The right-of-use asset is depreciated and the lease liability amortised over the lease term. In the case of an operating lease, the lease payments are recognised directly in profit or loss at maturity.

Other intangible assets

Other intangible assets are stated at cost less amortisation. They are amortised over their estimated useful life (three to five years) using the straight-line method. If there are indications that they are impaired, the carrying amounts are reviewed and, if necessary, adjusted.

Treasury shares

At the date of acquisition, treasury shares are recognised at cost as a deduction from equity. In the event of their sale at a later date, the gain or loss is credited or charged directly to voluntary retained earnings.

Investments comprised the following as at the reporting date:

The equity interests stated are also the share of the voting power in the investees listed.

Zurich Airport International AG, the wholly-owned subsidiary responsible for advising, operating and/or owning airports and airport-related companies throughout the world, holds all the investees existing in this context (with the exception of those in Venezuela).

In 2010, Zurich Airport Ltd. and its consortium partner Unique IDC turned to the International Centre for Settlement of Investment Disputes (ICSID) in Washington D.C. in the matter of the airport expropriated in Venezuela (Isla de Margarita). This step is in compliance with the investment protection treaty between Venezuela, Switzerland and Chile. The ICSID reached its decision in November 2014, requiring the Bolivarian Republic of Venezuela to reimburse the consortium the costs incurred for the proceedings and project plus a compensation payment and interest incurred up until receipt of payment. After an application for annulment was rejected, the tribunalʼs decision is definitive and final. The values of holdings and subsidiaries and the associated receivables are fully impaired.

Loans comprised the following as at the reporting date:

During the reporting year, further loans of CHF 45.5 million were extended to Zurich Airport International AG for the purposes of financing international airport operator projects.

A co-ownership structure exists for the Circle property, in which Zurich Airport Ltd. holds a 51% stake and Swiss Life AG holds a 49% stake. The pro rata assets and liabilities of the co-ownership structure are recorded in the annual financial statements of Zurich Airport Ltd. and reported as a share of capital.

The cost of the right-of-use assets recognised and the accumulated depreciation are shown below:

The corresponding lease liabilities have the following maturity structure:

In June 2025, Zurich Airport Ltd. placed a debenture for CHF 150.0 million with a coupon of 1.1775% and a maturity of 15 years.

External financing is subject to standard guarantees and covenants, which were complied with as at the reporting date. In addition, unused credit facilities at the reporting date amounted to a total of CHF 291.1 million (previous year: CHF 289.3 million).

For information on the reporting of noise-related data in the financial statements according to the provisions of the Swiss Code of Obligations, see also Reporting of noise-related costs in the financial statements.

The share capital of Zurich Airport Ltd. amounting to CHF 307,018,750 is composed of 30,701,875 fully paid-up registered shares with a nominal value of CHF 10.

In the reporting year, 8,170 registered shares were acquired at the market price (previous year: 4,773 registered shares). Treasury shares are distributed to members of the Management Board and members of the most senior management level under the bonus programme. In addition, Zurich Airport Ltd. gives those employees who have completed their first year of service a one-off gift in the form of one share free of charge.

As part of performance-based variable compensation, 1,936 shares (previous year: 2,178 shares) worth CHF 0.5 million (previous year: CHF 0.5 million) were awarded to members of the Management Board in the reporting period and 2,783 shares (previous year: 3,377 shares) worth CHF 0.7 million (previous year: CHF 0.7 million) to employees at the top management level.

In addition, Zurich Airport Ltd. gives those employees who have completed their first year of service a one-off gift in the form of one share free of charge. In the reporting period, 247 shares (previous year: 260 shares) worth CHF 0.1 million (previous year: CHF 0.1 million) were handed out in this context.

No hidden reserves were reversed in the reporting period or in the previous year.

As part of its involvement in the expansion and operation of the airport in Belo Horizonte, Brazil, Zurich Airport Ltd. provides a guarantee as security for local debt financing in the amount of CHF 16.6 million (previous year: CHF 14.7 million).

A number of legal proceedings and claims against Zurich Airport Ltd. in the context of its normal business activities are still pending. The company does not expect the amounts required to settle these lawsuits and claims to have a significantly negative impact on the financial statements and cash flow of Zurich Airport Ltd.

Depending on future legal judgements, amongst others with respect to the southern approaches at Zurich Airport, noise-related liabilities (see Reporting of noise-related costs in the financial statements) may in future be subject to substantial adjustments, which would also require adjustments to the balance sheet. At the present time, a definitive assessment is not possible.

Zurich Airport Ltd., together with Swiss Life AG, is jointly and severally liable for the liabilities of the co-ownership structure the Circle towards third parties.

The following events occurred after the 31 December 2025 reporting date.

Zurich Airport Ltd. concluded the negotiations on flight operation charges on 16 February 2026 and reached an agreement with the largest airlines and advocacy groups. Flight operation charges will be around 10% lower for users of Zurich Airport in future. At the same time, the return on invested capital will be increased by 0.5 percentage points to 5.5% as of 1 October 2026. If no requests for changes are received, the new charge regulations will enter into force as agreed on 1 October 2026.

The Board of Directors authorised the 2025 financial statements in accordance with the provisions of the Swiss Code of Obligations (CO) for issue on 6 March 2026. These also have to be approved by the Annual General Meeting.