SPAIN. Aena has posted a +12.9% year-on-year increase in income from its Spanish duty free shops in the first nine months of 2016, totalling €217.7 million (US$237.9 million).
The Spanish airport company’s duty free stores in Spain are operated by Dufry’s World Duty Free Group.
Food & beverage revenue rose +19.5% to €119.6 million (US$130.7 million). Income from other shops increased by +12.4% to €68.9 million (US$75.3 million). Total commercial revenue increased +10.8% to €622.8 million (US$680.7 million).
Aena attributed the growth to an increase in air traffic, improved contractual conditions for duty free store operations and the expansion and remodelling of retail spaces.
Traffic at Aena’s Spanish airports rose +10.8% in the first nine months to 178.6 million passengers. International traffic reached a record high, at 126.2 million passengers.
Aena’s commercial contracts vary according to the type of business activity. They are based, in general, on a variable revenue as a percentage of sales (percentages vary by product category and/or services) and come with a minimum annual guarantee rent.
Aena recorded an overall +47.8% increase in net profit in the first nine months of 2016, to €944.4 million (US$1.03 billion).
The Spanish airport operator said the result reflected the impact of higher costs associated with corporation tax and the reversal of extraordinary provisions for legal proceedings related to land expropriations at Madrid Barajas Airport. If the effect of this extraordinary reversal were excluded, net profit would be €790.7 million (US$864.2 million), up +23.7%.
Gross operating profit rose +10.5% to €1.76 billion.
Passenger traffic at London Luton Airport in the UK (acquired by AENA in 2014) increased +18.4% to 11.2 million. Total revenue increased +10.9% to £12.1 million (US$14.8 million), with commercial revenue up +10.4%. Car parks performed particularly strongly, with +16.4% growth.
Aena said the commercial performance at Luton reflected traffic growth, management and pricing strategies that have been implemented, and strong results at food & beverage concessions and speciality shops (+9.9% together). Also significant was the opening of a new walkthrough store and the improved terms of commercial contracts.
