UK. Leading UK airport group MAG today unveiled its fifth successive year of strong EBITDA growth, posting a +12% rise to £317.7 million (US$421.6 million) for the year ended 31 March 2016.
MAG owns and operates Manchester, London Stansted, East Midlands and Bournemouth airports.
MAG attributed the performance to record passenger numbers (+7.0% to 51.9 million) and new route development. Retail income, up +7.1% matched passenger growth, rising to £143.8 million (US$190.82 million).
MAG noted that retail revenues (see chart below) had been driven by passenger growth and that retail yield remained “stable” despite challenging conditions, particularly for duty free. The group noted the benefit of heavy retail investment seen at Stansted and East Midlands airports.
Car parking income grew by an impressive +12.4% or £15.2 million (US$20.17 million) to £137.6 million (US$181.3 million). That performance was driven by a focus on innovation, providing more customer choice and maximising utilisation, MAG said. It also noted a strong growth in pre-booking, coupled with additional capacity.
Highlights of the performance
- London Stansted Airport added more passengers year-on-year (2.3 million) than any other UK airport, placing it among Europe’s fastest-growing major airports.
- Stansted is now handling 5.7 million more passengers per year than when MAG acquired the airport in early 2013, an increase of +32.6%. The airport still has spare runway capacity and is well-placed to meet future growth in London’s aviation demand, prior to any new runway being built.
- Manchester Airport further developed its role as the global gateway for the North, serving a record 23.5 million passengers.
- This year has seen the Group investing heavily in preparing for the future; at Stansted Airport the £80 million terminal improvement programme and £11 million redevelopment of Satellite One were completed. Planning permission was also granted for the £1 billion Manchester Airport Transformation Programme.
- An increase in commercial income has been driven by more passengers upgrading their airport experience and taking advantage of MAG’s Escape Lounges, Premium ‘Meet and Greet’ valet parking offers and fast track security clearance.
- Creation of a new ‘MAG on-line’ division, headed by former Stansted MD Andrew Harrison, to focus on improving customer service and airport efficiency. It aims to deliver a range of innovative e-commerce products designed to advance MAG’s offer to passengers.
- MAG USA has had a productive first year of operation and been successful in winning contracts for three ‘Escape Lounges’; the lounge at Minneapolis St-Paul is already open and Oakland Airport lounge will open this summer. The third, at Bradley Airport in Hartford, Connecticut, will open in the autumn.
