DENMARK. Copenhagen Airports’ concession revenues dipped by -3.7% in 2007 compared to the previous year, hitting DKK829.5 million (US$162.7 million). Shopping Centre revenue dipped -12.6% to DKK470.6 million (US$92.3 million) in the year. But there are positive signs for the year ahead, as spend per passenger is rising at Gebr Heinemann’s new walk-through store.
The company said the decrease in concession income was mainly due to the major refurbishment of the Departures lounge and the creation of a centralised security zone at Copenhagen Kastrup Airport. The airports company also said it now enjoys “less favourable terms” under the new duty free contract with Gebr Heinemann than it did previously with Nuance.
Copenhagen Airports said: “Earnings from duty and tax free sales were down -24.5% in 2007, with sales affected by the change of concessionaire from Nuance to Gebr Heinemann. From March to May 2007 duty and tax free sales were handled from a small temporary shop in Terminal 3, located away from the main passenger flow. These moved to a new main store on 1 June 2007.”
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(Left-right) Registration begins at Suntec; TFWA President Erik Juul-Mortensen gets the first session under way | |
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Duty and tax free sales dipped by almost one quarter in 2007, due to the major refurbishment of the Departures lounge at Kastrup; but spend per passenger is rising in response to the wider offer now available at Gebr Heinemann’s walk-through store | |
But these figures were partly offset by increases among other commercial activities. Revenues from speciality shops rose by +8.2% in the year, with new concessionaires and brands contributing to the increase, said Copenhagen Airports.
Revenues from restaurants and bars rose by +27.1% in the year, which the company said was due to the rise in low-cost flights with little or no onboard service, plus the opening of several new food & beverage units.
Among the other major non-aeronautical income streams, car parking revenues rose +18% to DKK204.2 million (US$40 million), while hotel revenues (from the Hilton Copenhagen Airport) rose +6.8% to 207.8 million (US$40.7 million).
Copenhagen Airports also noted that customers appreciate the “improved service levels and product range” at the new walk-through duty free store, and said that spend per passenger had increased since the 1 June opening.
This summer a further 3,000sq m will be added to the Shopping Centre and transit area to help improve passenger flow. To meet the growing demand for retailing and other services the Shopping Centre will be further refurbished in the coming years, and will grow from 10,000sq m last year to almost 16,000sq m.
Overall, company revenue increase by +1.4% to DKK2,924.6 million (US$573.6 million). Net profit rose +52.8% to DKK1,112.5 million (US$218.2 million).
Passenger numbers at Copenhagen Airport rose +2.5% to 21.4 million in the year. The company said it was aiming to hit 30 million passengers a year by 2015.
International activities
Copenhagen Airports owns a stake in Mexican airport group ASUR. In 2007 commercial revenue per passenger across ASUR’s nine airports rose +44.9%. Commercial revenues now account for 30% of income at ASUR, compared to around 9% in 2000. Passenger traffic has risen by +6% a year since 1998, to 16.5 million a year in 2007.
At Newcastle International Airport in the UK, commercial revenues rose +10.5% to £27.7 million in 2007. The security screening facility has moved, allowing greater space for commercial activities. Newcastle Airport has now attracted a greater range of stores and negotiated better terms for its commercial contracts, said Copenhagen Airports. Traffic at Newcastle grew by +4.1% in the year to 5.7 million, with +9% growth in scheduled international traffic and a -3% dip in charter traffic.
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