DENMARK. Copenhagen Airport (CPH) shopping centre concession revenue rose by +4.2% year-on-year in the first three months of 2018 to reach DKK192.8 million (US$34.5 million) driven by an improved shop and brand mix, and a slight rise in traffic. The Danish hub processed 6.3 million passengers in Q1, up by +0.4%.

According to CPH, shopping centre sales – where Gebr Heinemann is the core duty free and travel retailer – rose on the back of an increase in sales at restaurants and cafés. Parking also made a strong contribution of DKK94.1 million (US$16.8 million), a rise of +5.8%.

Concession revenue by segment in Q1 2018

The CPH overall performance by revenue and profits

Copenhagen Airports CEO Thomas Woldbye said: “During the first three months of the year, we’ve opened a number of new food outlets and shops landside. This has been done in response to the requests of many passengers for more places to get a cup of coffee or something to eat before going through security, as well as other people wanting to get something to eat or drink while waiting for incoming flights.

“For seven out of ten passengers, the possibility of getting something to eat at the airport is important, and we have been missing offerings for those who, for example, wish to say goodbye to their families.”

The restaurant segment has been boosted by a new Lagkagehuset outlet plus five new units added in connection with expansion of the central security checkpoint which was completed in February.

CPH says the increase in parking has come about due to three factors: an amended price structure introduced in 2017 which helped to raise the average transaction value; a stronger online and media presence; and growth in local departing passengers.

Lagkagehuset: The Danish bakery added a new unit which helped buoy F&B sales

Construction programme continues

‘Tax Free’ revenue increased in Q1, helped by traffic on long-haul routes rising +11.8% thanks to a number of new routes. “We’ve worked hard to expand our long-haul network. New routes opened in 2017 included New Delhi in India, with Hong Kong and Amman in Jordan added this year. These have been instrumental in securing the growth in long-haul traffic we’ve seen in the first quarter,” said Woldbye.

In Q1, speciality stores were “on a par with last year despite significant rebuilding work” in connection with the expansion of Terminal 2. This is good news given that the airport will see record levels of construction this year as it invests close on DKK2 billion (US$358 million) in expanding and improving its facilities in 2018.

This is the biggest level of investment since the end of the 1990s. “We have an ambitious expansion plan in place. We’ll complete the major expansion of T2 airside and construction of a walkway from the metro station to security. The new Pier E is another major construction project, and here we’ve expanded the scope to include construction of a brand-new building for passport control and even more aircraft stands and gates, predominantly for the large long-haul aircraft,” commented Woldbye.