MAG flying high as turnover hits £779m
MANCHESTER Airports Group (MAG) has hailed its fifth consecutive year of growth as passenger numbers hit 51.9 million and revenue was up 5.5% to £778.8m.
The airport group, which as well as Manchester also owns London Stansted, East Midlands and Bournemouth airports, saw operating profits increase 21.7% to £186.9m for the year to the end of March 2016.
The strong performance means a mega payout for shareholders. The total dividend for the year will be £115.8m, that’s a 24.5% increase on last year and it means that major shareholder, the Greater Manchester Combined Authority, will receive £75m in total.
Manchester Airport’s record growth – it served 23.5 million passengers during the year – has been driven by new long haul routes such as Miami, New York and Hong Kong as well as incumbent short haul and low cost carriers such as Ryanair and Jet2 adding capacity through additional services and larger aircraft.
Ken O’Toole, managing director of Manchester Airport, told TheBusinessDesk that the continued strong traffic growth had been a major highlight of the year – adding that such growth was strong across all segments, from low cost carriers to traditional and long-haul services.
“Manchester is the only place outside of London where you can get to a lot of these long haul destinations,” he said.
“Its hard not to mention Hainan when talking about the growth of long haul carriers. It was an unknown brand in the UK when it launched. Now it is seeing average loads of 85% to 90%, which shows the strength of the appeal of the North West for inbound tourism from China.”
Hainan’s flight to Beijing – the first direct flight to China outside London – launched last month and its success is expected to soon be replicated with a direct flight to Shanghai, operated by Air China.
It is hoped that the Shanghai route will take off within the next year – TheBusinessDesk understands that slot availability at Shanghai airport is the sticking point.
MAG’s London Stansted Airport added more passengers year-on-year (2.3 million) than any other airport in the UK, placing it amongst the fastest growing major airports in Europe.
“With the uncertanty and hullabaloo around capacity in the South East, we continue to grow and go from strength to strength,” said O’Toole.
In the North West alone Manchester Airport makes an economic impact of £1.7bn. It is one of the largest centres of employment in the region with more than 21,500 people directly employed on site.
