DENMARK. Copenhagen Airports has reported a +6.0% year-on-year revenue increase from its shopping centre in 2017, to DKK840.5 million (US$137.5 million).
The airport said the main driver was an increase in local departing passengers. There was also an increased spend per passenger in the shopping centre last year, which the airport said was prompted by an improved shop and brand mix as well as the opening of a new area at the expanded central security checkpoint.
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“The speciality store concept has been optimised with an expanded product mix thanks to the opening of stores such as Copenhagen Souvenir & Design, Excess Baggage and Wally and Whiz, giving passengers a wider choice of attractive options,” Copenhagen Airports said in its annual report for 2017.
“The restaurant segment has been expanded with a new ReTreat unit, Riccos Kaffe, 42Raw, Bar Jacobsen and another Lagkagehuset unit.”
Parking revenue grew +4.1% due to increased capacity, an ongoing stronger online and media presence, and an increase in local departing passengers, the airport said.
Non-aeronautical revenue dropped -2.7%, mainly due to a change in the hotel operation. The group’s total revenue increased +0.4% to DKK4,439.4 million (US$726.6 million). Excluding one-off items, profit before tax was DKK1,661.8 million (US$271.9 million).
Passenger traffic
Copenhagen Airports reported a slight +0.5% year-on-year passenger traffic increase in 2017 to 29.2 million – a new passenger record.
It follows a +9.1% rise in 2016, which Copenhagen Airports CEO Thomas Woldbye said was “particularly high” and therefore a more “subdued” performance in 2017 was expected.
Woldbye said the airport had focused on attracting new long-haul routes in recent years, and in 2017 new direct routes to New Delhi and Agadir were among those to open.
Passenger traffic on long-haul routes was up +6% in 2017, to 3.2 million.
“In recent years, we’ve more than doubled the number of intercontinental routes in order to connect Denmark even better with the world outside Europe,” he said. “And that work is continuing, which means that in 2018 we can look forward to a new route with Cathay Pacific to Hong Kong, a new route with Royal Jordanian to Amman and a significant increase in traffic to Beijing when Air China opens the route to Copenhagen.”
The number of international tourists flying to Denmark via Copenhagen Airport in 2017 increased +23%, to over 3.5 million.
“A large proportion of the new passengers are young people aged 15 to 24, while the older groups over 60 are also travelling to Denmark more often,” said Woldbye.
British travellers still make up the largest group of tourists, while American tourists are now the second-largest group.
“This is due in no small part to the fact that in recent years we’ve acquired more direct routes from the USA, making it easier for American tourists to come to Denmark,” said Woldbye. “In 2017, there were 10 direct routes from Copenhagen to the USA. This is benefiting the entire Danish tourism industry.”
Investment and outlook
The airport invested DKK1.5 billion (US$245.4 million) on expanding and improving the airport for passengers and airlines in 2017.
Woldbye commented: “Among other things this allowed us to complete the major expansion of the central security checkpoint and begin work on the first two phases of the new 36,000sq m Pier E, which will have 13 new gates and additional stands for long-haul aircraft in particular.
“We’re also under way with a significant expansion of the passenger area between Pier A and Pier B airside, an expansion of the busy Terminal 3 and the construction of a new walkway from the metro station directly to security. The numerous building activities are an important part of our ambitious expansion plan, ‘Expanding CPH’, which will create an airport with capacity for 40 million passengers.”
Woldbye said investment would again be increased in 2018. “We’ve decided to raise the investment level even further in 2018 and expect our total investments to top DKK2 billion (US$327.2 million). Important elements in this will be the construction of Pier E and completing the expansion of Terminal 2.”
Copenhagen Airports expects passenger traffic to increase in 2018, but said this was subject to “general economic developments, decisions by airlines relating to routes and capacity, and isolated events in the aviation industry”.
Operating costs are expected to be higher than in 2017, primarily due to the expected rise in passenger numbers, stricter security requirements and cost inflation. The airport said this rise in costs will partly be offset by a continuing strong focus on operating cost efficiency.
Excluding one-off items, profit before tax in 2018 is expected to be in the range of DKK1,350-1,450 million. Excluding one-off items due to the reduction in charges, EBITDA is expected to be lower in 2018 than in 2017.
