UK Airports group TBI has reported its profits and sales for the year ended 31 March 2003 were suppressed by a tough environment.
Group turnover from operations at London Luton, Cardiff, Belfast in the UK plus Orlando Sanford, Stockholm Skavsta airport and others, was slightly down -4.6% at £177.6 million (US$289.5 million). Profit (EBITDA) was down -10.9% to £47.3 million (US$77.1 million). The biggest contribution came from Luton airport with turnover of £64.9 million (US$105.8 million).
The growth of low-cost airline connections had a positive impact as bmibaby established a second UK base at Cardiff in November 2002. Ryanair started a base operation at Stockholm Skavsta in April 2003. Improved performance at London Luton airport followed further reorganisation initiatives. TBI now has almost no flag-carrier services at its airports, and has shifted its base of revenues toward low-cost carriers. The company said passenger growth in the first two months of the new financial year (April and May) has been encouraging with traffic up +23% year-on-year to 2.3 million. All core airport locations saw passenger growth of at least +10% in the financial year.
Retail – both airside and landside – was the subject of a revised concession covering Belfast and Cardiff airports. At both locations, TBI said growth in passenger numbers will open more doors and provide more options as to which retailers will consider opening in these airports.
At London Luton, most of the retail concessions reach the end of their lease term in 2004. TBI said: “This offers us an excellent opportunity to ensure that our retail mix is improved to better reflect our passenger profile and increase revenue per passenger.”
TBI ceo Keith Brooks commented: “In a tough environment for the market as a whole, and the air transport sector in particular, TBI has again demonstrated its resilience. This is the first full year to reflect a fundamental rebasing of our airline custom and, as such, represents a base level of earnings for the future.
“TBI enters the current year well positioned to capitalise on the growth forecast for low cost travel in particular, with an attractive collection of assets and a management team which has proven its ability to adapt and innovate in an ever-changing environment.”
