TRBUSINESS. It was also driven by an increase of long-haul destinations, and expanded short haul networks.
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1 Manchester Airports Group (MAG) which owns Manchester, London Stansted, and East Midlands airports and manages Escape Lounges in the US under its MAG USA arm, says that passenger growth drove an 11.2% growth in retail revenue to 181.6m ($240m) in FY2018. MAG's traffic fuels retail revenue growth of 11% Its retail yield increased by a less impressive 4%, but MAG implied that this should be seen as a positive result considering the challenging market conditions particularly in duty free. Retail revenue now represents 22.2% of MAG s total revenue generated from a combined 400,000sq ft of retail space split among 50 operators. The total group s activities produced growth in EBITDA for a seventh consecutive year (+5.8% to 358.8m/$47m)), driven by a 6.7% increase in passenger numbers to 58.9m, despite the challenges presented by Monarch entering administration in October 2017 and Ryanair cutting capacity from its winter schedule. It was also driven by an increase of long-haul destinations, and expanded short haul networks. MAN: TOP 20 EUROPEAN AIRPORT The company s largest airport, Manchester, consolidated its position as a top 20 European airport with 70+ airlines and 220+ destinations driving passenger growth of 6.5% to 27.9m. As a result of Manchester s 10-year, 10bn transformation programme which began last year, the first new pier is due to open in April 2019, with the main terminal extension operational in 2020.
2 London Stansted Airport passenger numbers rose 7.4% to 26.1m this year, and is the fastest growing major airport in the UK. In fact, STN recently submitted a planning application to raise the limit on the number of passengers it is permitted to serve from 35m per year to 43m, without increasing the currently permitted number of flights or agreed noise footprint. It also started work on the initial phase of an investment programme that will deliver enhanced facilities including new check-in desks, additional aircraft stands and expanded retail facilities. Over the next 12 months MAG expects to begin the next phase of investment in new facilities next to the existing terminal. MAG-O GATHERS MOMENTUM AND STAFF Within the last year, MAG also launched its own technology and e-commerce business, MAG-O; a single online platform that will enable passengers to buy car parking, fast track, lounge and retail in one seamless online transaction. According to the group, MAG-O exceeded its first full year targets, insourcing a number of digital capabilities across the course of the year (Marketing, Technology, Data Science, Sales) and now has a total of 100 full time staff.
3 A rendering of the new Manchester Airport Departures concourse part of a 10bn transformation project which began last year. MAG s American business, MAG USA, has continued to grow, with four Escape Lounges now open, and a fifth recently announced at Greenville-Spartanburg Airport, North Carolina. The business is expecting to announce more airport partnerships in lounges and car parking in due course. POST-BREXIT PLEA MAG Chief Executive, Charlie Cornish, said: The world class connectivity that our airports are delivering will ensure that MAG continues to play a leading role in powering the UK economy.
4 The future of Stansted a rendering of the new Stansted Airport upon the completion of a $600m transformation project which has just entered its second phase. Manchester and London Stansted are the two largest UK airports with significant runway capacity and our investment will allow us to meet continued demand for aviation growth both in and out of the UK. The Government s support for airports looking to make the best use of existing capacity provides a clear framework for growth, and it is critical that it now matches its backing for Heathrow expansion with specific and practical proposals to improve rail access and maximise the potential of airports like Manchester, London Stansted and East Midlands.
5 The new MAG-O offices. As the UK prepares to leave the EU, we are confident that the UK Government and the EU recognise the importance of providing confidence to passengers and airlines, and we welcome the commitment from both sides to putting in place a framework that will enable air services to continue post Brexit. Looking forward, our resilient foundations, healthy financial position and attractiveness of our UK airports will ensure that the business is well-placed to respond to any challenges that may be felt by the UK economy in the future and we continue to take a positive long-term view of our prospects for growth.
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