Retail revenues bounce back as MAG delivers strong summer recovery

UK. Buoyed by passenger numbers climbing to 84% of pre-COVID levels, Manchester Airport Group (MAG), which operates Manchester, London Stansted and East Midlands airports, turned in a strong retail performance for the six months ended 30 September.

Retail concession revenue surged +427.3% year-on-year to £119.7 million (US$145.8 million), while aviation income rose +214.3% to £204 million (US$248.4 million). Total revenues increased by +239.5% to £538.8 million (US$656.1 million).

Car parking revenue increased by +295.8% to £159.1 million (US$193.8 million).

MAG served 30.5 million passengers between April and September this year, up from 6.6 million over the same period last year

For the first six months of the financial year, MAG recorded an operating profit of £22.8 million (US$27.8 million), compared with losses of £75.7 million (US92.2 million) during the same period last year.

All charts courtesy of MAG. Click on the images to expand.

MAG’s positive performance across all of its airports was driven by the reintroduction of the vast majority of its airlines’ pre-pandemic routes. Short-haul travel at times exceeded 2019 traffic levels, while there was a strong recovery in direct long-haul routes, particularly to North America and the Middle East.

MAG’s decision not to impose capacity restrictions on its airlines also contributed to the strong performance, allowing carriers to meet passenger demand over the summer period.

Following an extensive recruitment campaign, service levels at MAG’s airports are now at – or above –  those delivered before COVID, the group said. Looking ahead to next year, the Group’s airports are continuing to recruit new staff to be able to deliver further improvements in customer service.

While wider economic factors, including the cost of living, could dampen growth in demand for international travel over the coming months, the Group remains confident its positive recovery will continue.

MAG CEO Charlie Cornish said: “These half-year results demonstrate the significant progress our business has made over the summer months, and are testament to the hard work and dedication of teams across MAG.

“The uplift in passenger numbers we have seen reflects the strong demand for international travel since restrictions were lifted, with more than 30 million passengers travelling through our airports between April and September.

“After a challenging start to the summer season, I am pleased to have welcomed more than 2,000 new colleagues into the business and want to assure all our customers we are focussed on delivering a really positive experience for the remainder of the year, and throughout 2023.

“As the UK navigates a period of economic uncertainty, we will be working closely with our airlines to ensure our airports offer passengers an excellent choice of affordable travel options.”

Food & Beverage The Magazine eZine