Record passenger numbers drive profits for MAG

NEW route development has driven passenger numbers back to pre-recession levels at Manchester and London Stansted airports for Manchester Airport Group.

MAG passenger numbers group-wide in the first six months were up 7.7% year-on-year to 32 million.

Manchester Airport is now serving more than 25 million passengers a year for the first time in its history, while London Stansted handles more than 24 million, breaking its previous record set in 2007.

The strong growth is born out in  the group’s half year financial results, which show a 6% increase in operating profit to £145.5m to the end of September 2016, on a turnover of £482.3m. EBITDA oncreased to £215.9m (2015: £202.5m).  

Increased revenues have also been driven by the completion of terminal renovations at London Stansted and East Midlands with retail revenue across the group up 11% on last year.

In 2015-2016, activity at MAG’s four airports at Manchester, London Stansted, East Midlands and Bournemouth, contributed £6.2bn of economic value, which equates to £8 of economic activity for every £1 of revenue the group generates.

Charlie Cornish, MAG chief executive, said the group’s airports are amongst the most significant drivers of economic growth in their regions, as spare capacity enables them to grow more quickly than other airports.

He added: “With the decision on Heathrow now made, Government must quickly commit to developing a new aviation policy that will maximise these opportunities for both the country as a whole and the regions that our airports serve.

“The short-term priority for Government must be to make the most of the runways we already have in the 10-15 year period before any new runway is ready and we are calling on them to support faster rail services to Stansted and reduce aviation taxes to encourage new connections from Manchester, particularly to key long haul markets.”

He added that MAG is in a strong position as the UK leaves the EU, a process he said will highlight the importance of international connectivity to the UK’s future.

“As the country prepares to enter a new era, we will be working closely with Government and the rest of our industry to put in place a framework that will ensure the UK has the very best connections to the rest of the world – something that is fundamental building block for a modern, trading economy. At no point have the excellent links that this country’s airports provide been more vital to the nation s future prosperity and economic growth.”

The group announced an interim dividend of £47m, a 22% year-on-year increase, with 65% of this being paid directly to its shareholders at Manchester City Council and the other Greater Manchester councils.

MAG figures dec16

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