UK. Manchester Airports Group (MAG) posted a strong commercial performance for the year ended 31 March 2017, with retail income climbing by +14.3% year-on-year to £164.4 million. This was ahead of a +7.7% passenger traffic increase across the group to 55.9 million.
Retail growth was driven by the full impact of a major investment in retail and F&B at London Stansted Airport, as well as “improved commercial terms and continued focus on operational improvement [that] supported growth in retail yield during the year,” said MAG in its annual report.
Car parking grew strongly, with revenues +10.6% higher than the prior year at £152.1 million. The increase was driven by investment in new capacity to support passenger growth and broadening the product mix, with particular focus on Meet & Greet facilities.
Commercial income per passenger was flat at Manchester Airport at £7.50 in the year, but climbed from £5.70 to £6.20 at Stansted over the period. At East Midlands commercial income per passenger rose from £6.90 to £7.10, and at Bournemouth it slipped slightly, from £8.20 to £8.10.
Group revenue climbed by +7.8% in the year to £839.6 million with EBITDA up by +8% to £343.2 million.
MAG said that is US business has continued to grow. Three Escape lounges are now open with a fourth to come at Reno-Tahoe Airport. MAG has also signed a deal with American Express allowing Platinum Card members complimentary access to Escape Lounges.
MAG CEO Charlie Cornish said: “Our plans for significant investment in Manchester Airport and London Stansted will not only improve the experience for passengers and airlines using our airports but also provide the foundations upon which we will be able to meet anticipated future demand.
“Manchester Airport is now one of Europe’s top 20 largest airports, reflecting the quality of the access it offers to global markets and London Stansted will play an increasingly vital role in providing London and the South-east with valuable international connectivity.”