Commercial income outstrips passenger growth as Birmingham Airport posts record traffic

UK. Birmingham Airport’s commercial income grew by +10.5% to £57.14 million (US$75.1 million) in the year ended March 2016, easily outstripping passenger growth of +5.5%.

The airport handled 10.4 million passengers, an all-time high and the fifth consecutive year of traffic growth.

Aeronautical income rose by +4.0% in the year, 1.5% below passenger growth, reflecting a changing traffic mix. This resulted in a decrease in the yield per passenger to £5.10 compared to £5.18 in the previous year.

Commercial activities, including duty free, car parking, catering, property rental and recharges, delivered what the airport company called “another strong year”.

It noted: “The continued development within the terminal, in particular the departure lounge, helps improve the passenger experience and increase commercial yield.”

rsz_bia_table_2
Concessions revenue now represents the lion’s share of the airport’s turnover

The airport benefited from the full year trading of an extended and substantially refurbished Wetherspoon pub (pictured below and winner of a Highly Commended recognition in the 2016 FAB Awards) including a live virtual image of the airfield; along with the opening of family casual dining restaurant Giraffe; and new-look Dixons and Next stores. Those changes helped drive a +4.8% increase in yield, the company said.

BIA 6 2a
The extended and refurbished Wetherspoon pub has been a brilliant success story at Birmingham Airport, gaining a Highly Commended accolade against stiff international competition in this year’s FAB Awards Airport Bar of the Year category

In the forthcoming year the airport company pledged more developments across its commercial portfolio, including a new Joe and the Juice coffee unit and a “significant redevelopment” of the duty free store (run by World Duty Free). The latter will add several brands, including Jo Malone, Bobbi Brown, Urban Decay and a World of Whisky offer.

rsz_bia_table_1

Food & Beverage The Magazine eZine