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NEWS Last modified on December 9, 2014

MAG reports strong financial performance and traffic growth

The Manchester Airports Group (MAG) has reported its interim unaudited results for the six months ending September 30 of which highlights included strong passenger traffic growth and financial performance.

The largest UK-owned airport operator, says EBITDA was up 8.7% to £183 million (€232 million) driven by increases in traveller numbers and commercial revenues, which has “ensured the continuation of the growth rate delivered over the past few years”.

Cash generated from operations increased by £40 million (€50 million) (+31.8%) to £167 million (€211 million), and the group explains this underpins the group’s continued ability to invest in the asset base and fund future growth.

MAG says long-term commercial agreements with airlines have generated a significant increase in passengers by 8.5% to 28 million, taking numbers to near record levels at Manchester and delivering industry leading growth at Stansted.

The number of destinations accessible from MAG’s four airports is now at record levels, up by 4% to 277, including the arrival of new flights to Jeddah, Eindhoven and Bologna and additional capacity provided on many existing routes such as Abu Dhabi and New York.

Other highlights the operator says are Stansted being the fastest growing major airport in the South East (+11.9% for passenger numbers).

manchester2

MAG continues that investment continues to be made in infrastructure, to deliver “significant improvements” to the security and retail facilities at Stansted and East Midlands, along with expansion of the car park estate and improvements to the group’s back office functions.

Other plans are continued diversification provided through its property investment portfolio and deals announced at Airport City with DHL and PZ Cussons.

Neil Thompson, chief financial officer of MAG, says: “MAG has delivered a strong financial performance in the first six months of the year, meeting or exceeding its financial targets and continuing the growth rate delivered over the past few years.

“A busy summer period saw more passengers than ever before using our four airports and taking advantage of the largest number of destinations that we have ever been able to offer.

“Our focus on long-term commercial agreements has made this possible and we continue to focus on further diversifying our route offering, particularly with regards long haul.

“I am especially pleased with the performance of Manchester, which is reaching its record annual passenger level and Stansted, which is now showing industry leading levels of passenger growth.

Stansted

“Stansted alone has added over two million passengers since we acquired the airport in February 2013 and has begun to see substantial operational and commercial benefits from being part of the group.

“Unlike other London airports, Stansted has spare runway capacity today and significant room to grow in the future and it is vital that faster rail services are delivered between London and Stansted so as to ensure that this potential is utilised.

“We also continue to invest significantly in our infrastructure, with the existing facilities at all four airports having been improved in the last six months.

“Finally, I am delighted to announce the payment of a £31 million (€39 million) Interim Dividend to shareholders. This is testament to the health of the business and we are confident of delivering a strong performance throughout the rest of the financial year and beyond.”

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