SPAIN. Airports company AENA posted a robust +11.2% year-on-year rise in commercial revenues for the 12 months ended 31 December 2017, with the figure hitting €1,049 million. This outstripped passenger traffic growth of +8.3% in the year, to 265 million across the network.

Within this, duty free income climbed by +8.4%, food & beverage by +13.7% and speciality shops by +2.3%. Revenue from car rental posted healthy growth of +30.5% year-on-year, while car parking income grew by +8.6%.

AENA noted some of the key factors affecting commercial performance. These included the increases in Dufry-owned World Duty Free Group’s Minimum Annual Guarantees, as well as new concessions and strong trading performances in F&B and car rental. There was a further impact (negatively on UK spend) from the weaker Pound Sterling, notably in tourist airports. In car parking, the +8.1% rise in domestic passenger traffic was a key contributor, as were new booking, marketing and loyalty programmes.

Average revenue per passenger reached €4.20, up by +2.7% compared to 2016.

By the numbers: The strong commercial performance in detail (click to enlarge)

Looking ahead, new F&B concessions will come on stream at Barcelona Airport later this year, boosting space for this channel by +19% (to around 16,000sq m) and expected revenues from F&B at the airport by +30% in the first full year. (More details to follow soon.)

In duty free, among the key developments in 2017 was the opening of Dufry’s New Generation Store at Madrid-Barajas T4. Further commercial expansion at Madrid, Palma de Mallorca and Seville will come soon, to optimise duty free spaces at these locations.

In other project news at Madrid T4, recent tenders have been awarded to Carolina Herrera, Fedon and pop-up shops Scalpers and DODO.

Among the most noteworthy commercial performances of airports by region came in the Canary Islands, following upgrades carried out in 2016 and after the first full year of new business. Gran Canaria delivered a +19% increase in commercial income, with +22% growth in Lanzarote and +10% at Tenerife Sur Airport.

At London Luton Airport in the UK, commercial revenue grew by +13.4%. This was aided by the good performance of car parking revenue (+13.8%), traffic growth (+8.6% to 15.8 million), as well as retail and food & beverage income (+13.0% combined). Duty free was buoyed by the June 2016 walk-through store opening by Aelia Duty Free.

AENA consolidated revenue for the year was just over €4 billion, a rise of +6.8%, with consolidated net profit attributable to shareholders up +5.8% at €1.2 billion.

As noted above, passenger traffic for the year climbed by +8.3%, though within the AENA Spanish airport network (i.e. excluding London Luton Airport) the growth was +8.2%. International traffic rose by +8.4% compared to +8.1% growth in domestic.

The passenger traffic performance by airport; the AENA network delivered a rise of +8.2% in volumes within Spain