Linz Airport faces significant financial and structural challenges, as highlighted by a new report from the auditing firm KPMG, commissioned by the City of Linz. The valuation indicates a liquidation value of only between two and four million euros for the operating company, while the valuation using the income approach even yields a negative result.
These figures form the basis for upcoming negotiations between the city of Linz and the state of Upper Austria regarding the future ownership structure of the regional airport. In addition to ongoing deficits, pending infrastructure investments and legal risks stemming from contamination in the vicinity of the site are impacting the economic prospects of the location. The debate touches upon both budgetary considerations and the question of the necessity of air transport connections for the regional economy.
Results of the expert report and the financial situation
The KPMG report commissioned by the city of Linz reveals the airport's financial situation. While the liquidation value—the theoretical proceeds from dissolving the company and selling all its assets—is in the single-digit millions, the discounted cash flow (DCF) method demonstrates the weakness of its current profitability. This method calculates a company's value based on expected future cash flows. A negative value indicates that future revenues will not cover operating costs and necessary investments.
Furthermore, these calculations do not yet fully account for upcoming major projects. These include, in particular, a complete overhaul of the runway, which will be necessary in the coming years. In addition, there are impending claims for damages related to contaminated wells in the vicinity of the airport, the financial extent of which cannot yet be definitively determined. Last year, the two owners, the State of Upper Austria and the City of Linz, already had to provide a shareholder contribution of eight million euros to ensure the airport's continued operation.
Political negotiations and possible sales models
The results of the assessment will influence political negotiations regarding the airport's future. Given its strained municipal budget, the city of Linz is seeking relief and is considering selling its 50 percent stake. The state of Upper Austria holds a right of first refusal on the city's shares. In political discussions, the state acquiring the city's shares for a symbolic price of one euro is being considered as a possible scenario.
Alternatively, partial privatization was briefly under consideration. A group of regional entrepreneurs had submitted a purchase offer of one million euros for the shares. However, this deadline expired at the end of June 2026 without an agreement being reached. Since both state and local elections are scheduled in Upper Austria in 2027, the decision-making processes surrounding the airport are taking on an additional political dimension. The office of Mayor Dietmar Prammer confirmed receipt of the expert report but declined to comment on the specific figures, citing the ongoing review.
Differing assessments of its economic importance
The debate about the future of the site is shaped by differing perspectives on the airport's economic function. An audit report by the Upper Austrian Court of Audit indicates that the airport is expected to have additional financial needs of between €27,6 and €45 million by 2035. This amount covers ongoing deficits but does not include the remediation of historical environmental liabilities. Furthermore, the state of Upper Austria will contribute up to €36 million over the next four years to maintain scheduled flights between Linz and the Frankfurt hub.
In contrast, the state government emphasizes the importance of infrastructure for Upper Austria's economic standing. It bases this argument on a study by economist Teodoro Cocca of Johannes Kepler University Linz. According to these calculations, the airport generates an annual economic benefit of approximately €128,5 million for the region. Proponents of the airport stress that a direct connection to the international air transport network is a high priority for industrial and commercial companies located in the Linz area, in order to ensure accessibility for business partners and the flow of cargo.
Demands for transparency and disclosure of the strategy
Criticism of the decision-makers' information policy is growing among politicians. Severin Mayr, parliamentary group leader of the Green Party in the state parliament, demanded the disclosure of all figures and expert opinions before any decisions are made regarding a potential complete takeover by the state. He emphasized that the reported figures argue against an uncritical continuation of the current financing practices.
Furthermore, the development of a new strategic direction for the airport is a central focus of the discussion. Representatives from various parties are demanding that this concept be presented to the public and parliamentary bodies to assess the viability of the future business model. The future development of Linz Airport depends significantly on the outcome of the negotiations between the city and the state and whether a sustainable financial foundation can be achieved without ongoing public subsidies.