Profits down 42% at Manchester Airports Group
26.11.08
Pre-tax profits at Manchester Airports Group have fallen by 41.7 percent to £38.4m as passenger numbers fell, Crains reports Figures for the six months to September 2008 show MAG’s turnover dropped 4.3 percent to £217.3m while the group made a loss after tax of £82.5m compared with a £60.5m profit the previous year. Group operating profit was down to £68.4m from £71.8m, a 4.7 percent decrease.
While the group reported turnover growth in its retail and airport car parking operations, it was not enough to offset falls in passengers in the six months. Across Manchester, East Midlands, Humberside, and Bournemouth airports, MAG saw passenger numbers decline by 2.2 percent to 16.6m. Although at East Midlands traffic grew by 5 percent, Manchester Airport’s traffic fell by 3.8 percent and Humberside saw traffic fall by 10 percent.
MAG made an £80m loss after tax in the six months because of a one-off tax payment of £115.4m after empty rates relief was abolished earlier this year. Revenue was also partly down because of the closure earlier this year of MAG’s loss-making ground-handling company Ringway Handling Services. In addition, the drop in pre-tax profits from £65.9m to £38.4m was partly because of a £17m write-off relating to investment property.
A spokesman for Manchester Airport said the 2.2 percent decline in traffic across the group represented a ‘solid performance consistent with the highly competitive market and continued charter attrition.’
MAG chief executive Geoff Muirhead said: ‘It’s a good performance for the business in trying times. The results in a challenging market are better than good. The services we are offering people have become much improved. As we work thought the balance of investment that will improve further.’
He said he expected the next 18 months to be ‘tough’ and passenger numbers to fall further. There are signs that the next six months could be even tougher for MAG as more airlines cut capacity. Figures obtained by Crains from analysts Innovata show capacity on this winter’s schedule is down more than 3 percent. Manchester Airport passenger numbers for the financial year to date, including October, are down 4.92 percent while freight was down 16.51 percent as passengers cut back.
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