Booming MAG to boost councils’ coffers by £60m

RECORD passenger numbers at Manchester Airport and a revival at Stansted has boosted profits and revenues at Manchester Airports Group.

MAG, which also owns East Midlands and Bournemouth airports said its 17.2% surge in earnings to £283.6m on revenues up 10% to £738.4m was good news for Greater Manchester as the councils would share nearly £60m in dividends this year, double the figure of 2014.

Ken O’Toole, managing director of Manchester Airport, said Manchester’s 7% passenger number growth to 22.3 million in the 12 months to March 31 and Stansted’s 16% surge to 20.9 million meant the group’s two largest airports were “comprehensively out-performing” the UK average of 4.5%-5%.

He said Greater Manchester’s economy would not benefit purely from the dividend payment at a time of central government funding custs, but from the increased connectivity and international trade the airport is delivering.

“We have grown long haul 10% and of course Cathay Pacific to Hong Kong was a head-line grabber, but we have also seen further growth in the Middle East and to North America too.

“We believe Manchester has an increasing and very important part to play in the UK aviation debate. For many people we are an alternative to Heathrow and as capacity constraints in the South East worsen over the next 10 to 15 years, Manchester will have a big role to play.

“Already, we are seeing passengers using us from as far afield as Edinburgh,” he added. 

Charlie Cornish, chief executive said: “MAG has delivered a fifth consecutive year of strong growth, investment and development that has enabled us to exceed expectations across many of our key measures, including the delivery of industry leading passenger numbers and trading performance.
 
“The success of MAG s commercial and operational strategy is reflected in the fact that we have welcomed nearly five million more passengers into our four airports and been able to offer them an increasingly diverse range of facilities, unparalleled choice of airlines and range of destinations that has taken them all over the world.
 
“I am especially pleased with the performance of our two largest airports, Manchester and London Stansted, which are both currently enjoying robust growth and have bright futures ahead of them.”

MAG is 35.5% owned by Manchester City Council, while the other nine Greater Manchester local authorities own 29%. The remaining 35.5% is held by Australian institution IFM Investors.

M.A.G said ebitda growth was driven by passenger number increases, continued improvement in commercial performance, particularly across its car-parking estate, and focused expenditure to support both increased volumes and improved customer service.
 
Manchester Airport saw total revenues in the year grow 10.5% to £369.9m.
 
In June, M.A.G announced the £1bn plans for a 10-year Manchester Airport Transformation Programme, which aims to “significantly alter the airport, ensuring that it continues to thrive as a national asset and play a strong role in meeting the UK s capacity needs as the  UK Global Gateway from the North.”