IRELAND. State-owned travel retailer Aer Rianta International (ARI) recorded managed turnover of €1.1 billion in 2022, a leap of +132% year-on-year, with the figure reaching 91% of pre-pandemic 2019 levels. Buoyed by strong growth across its global operations, the year also marked a return to profitability for the company.
ARI Chief Executive Officer Ray Hernan commented, “We are very pleased to report a robust improvement in performance and a return to profitability across our global estate for 2022. After a number of turbulent years navigating the impacts of the global pandemic, it is encouraging to see the business return to significant growth. While recovery was not uniform across all locations, each demonstrated a strong performance, and all were profitable.”
Some locations experienced a slower start to 2022 as the effects of Covid remained throughout Q1, noted ARI. But the market soon rebounded with a faster than projected rise in passenger volume and record levels of spend per passenger.
Key influences on the performance included the advantage of duty free pricing for UK-bound travellers – important in the case of ARI’s Ireland, Cyprus and Portuguese duty free and duty paid operations, the latter since June 2022.
While initial investment in Portuguese operations has been accounted for in the 2022 financials, with more set for 2023, a busy year for Portuguese tourism contributed positively to ARI’s overall business performance, the retailer said.
“We have remained focused on managing the ongoing recovery whilst developing plans for future growth”, said Hernan. “Our 2022 performance is a signal of our intent as we eye growth across several key markets in the coming year, while maximising our existing operations. Our new business in Portugal has been very encouraging so far, trading ahead of plan. The focus now turns to delivering an extensive capital refurbishment programme across all Portuguese locations as well as implementing our operational commitments.”
In addition to its outlets at Dublin and Cork airports in Ireland, ARI has direct or indirect interests in 15 countries across North America, Europe, the Middle East, and Asia Pacific. ARI also holds daa’s shareholdings at Düsseldorf Airport in Germany, and in Hermes Airports, which operates Larnaca and Paphos airports in Cyprus.
ARI’s joint-venture operation at Delhi Indira Gandhi International Airport, where it holds a 33.1% stake, experienced a rapid recovery in 2022. The business recorded turnover that reached 97% of 2019 levels, including a record month in December 2022.
ARI Middle East (ARIME), which comprises businesses in Bahrain, Cyprus, Lebanon, Oman, Qatar, and Saudi Arabia, delivered strong results for 2022 following a solid overall performance in the previous year.
The retail business in Bahrain traded ahead of forecast in the high-class retail setting at the new Bahrain International Airport terminal. ARI’s business in Riyadh T5 performed well with the domestic terminal not as adversely hit by travel restrictions as international terminals.
The Qatar liquor distribution business, managed by ARI, performed strongly during 2022, particularly during Q4 with the football World Cup “significantly driving revenue”, the company noted.
Muscat Duty Free delivered “a very strong performance”, which was boosted by an increase in liquor and tobacco allowances for arriving travellers.
ARI’s retail operations at Larnaca and Paphos airports traded at almost 90% of 2019 levels for the year – buoyed by a strong peak season – and returned a healthy profit, said ARI, despite the impact of the Ukraine-Russia conflict. Previously, Russian passengers accounted for a high proportion of total spend per passenger. The collapse of Russian leisure travel was offset by an increase in European and Israeli passengers, as well as a significant uplift in spend from UK passengers.
ARI’s two Montenegro operations also continued to trade profitably despite the lack of Russian and Ukrainian passengers.
ARI’s Canadian airport stores reached around 78% of 2019 turnover. The business had a slower recovery than other locations during Q1 due to US border closures and airline capacity restrictions on international routes, but recovery resumed at pace from Q2 onwards, said ARI. The lack of Chinese passengers also had an impact on the recovery last year.
ARI’s Auckland Airport business reported a “solid performance” since New Zealand reopened its borders in Q2 2022, with ARI trading in a temporary single operator capacity until October 2022. The business traded positively throughout this period, it said.
In February, ARI launched a new corporate and consumer-facing brand identity, including an updated logo and brand expression, ‘Joy On Your Way’. Click here for the full story.
“The strategic decisions we made as a business in the early days of the pandemic equipped ARI to recover fast and to maximise opportunities once international travel returned at pace; our 2022 financial performance is testament to this,” said Hernan.
“We began 2023 in a strong position across all business units, and this has been further bolstered by the launch of the revitalised ARI brand in February this year. We have the solid foundations to support our growth plans and look forward to a positive performance for the business this year as we strengthen our current offerings, continue to nurture our existing partnerships, and explore new territories.”
The strong financial performance, ARI said, is underpinned by its wider strategic commitments. The company said it will continue to focus on taking industry leadership in the area of ESG, enhancing its retail offer, service and reputation under its Customer Value Proposition, and further bolstering its Diversity, Equity & Inclusion assurances.
*The Moodie Davitt Report publishes a regular column, High Flyers, in association with ARI. Click here for the latest edition, in which Global Head of Liquor, Tobacco & Confectionery Paul Hunnisett addresses the theme of Sense of Place. 
